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How would entering The Euro be good or bad for Britain's economy?

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Introduction

How would entering The Euro be good or bad for Britain's economy? Introduction: The Euro is one of the most controversial issues that has faced Britain in years. The idea has spilt the country, as well as government, into euro-sceptics and euro-philes. Much of the public believe that the pound is too strong a currency to lose, yet others believe that the Euro is the only way forward. However, many of the public do not know how it would effect our economy and judge on the basis of sovereignty or ideals of a single Europe. Background information: The Euro will affect all but the most insular of organisations in the UK in some way and could become one of the most complex strategic issues to be addressed to date. The manner in which existing markets will change over time cannot be predicted and organisations will need flexibility to change and adapt. The exact timing for organisations to take action will largely depend on their size, the sector they operate in and their levels of cross-border trading. Even though the UK has not joined the single currency, the Euro zone will have an effect on many UK businesses, especially those that buy and sell products throughout Europe. ...read more.

Middle

Decisions have been made to suit the short-term political goals of the political party in power rather than the long-term health of the national economy. Instead of this, the decisions concerning interest rates is taken by a group of experts in The European Central Bank who have the entire region's interest at heart and therefore, it is very unlikely the interest rates will be too far from perfect for the whole region. Seeing as every country has to meet the criteria anyway. Yet, we no longer see interest rates set in this country for a political gain, because they are set by The Bank of England, not by government. Also, many countries, on entry into the Euro, did not fully meet the stipulated criteria, a main example of this is most countries failed to achieve the required budget deficit figure of 3% of GDP, with the exception of Greece. The subsequent poor performance of the euro on the international currency market is testimony to its inherent weakness. It could be said that giving up the pound for the Euro could only damage Britain's current economic strength. These arguments are what the government has to look at, as well as many other sources, before they make a decision that could either ruin our stable economy or further improve it. ...read more.

Conclusion

Without any ambition and economic growth how wrong they could be. This is not a good advertisement for any country who are deciding on whether to join in the Eurozone. A recent article in the Financial Times (see appendices) has strongly outlined how business is opposed to further integration into Europe and the Eurozone. A MORI poll has found that nearly seven out of ten finance directors are opposed to the new European constitution and basically none of them strongly want to adopt it. Due to this massive majority, it seems for any government who want to further integrate, their hardest job will be persuading business. There is little doubt that being part of the Eurozone is a definite possibility for Britain in upcoming years. However it is important for any government who make the decision to join, that they are doing so for the right reasons, and not because of an optimistic ideal of increased personal power, because this is would simply not be the result. From my research it is hard to see that joining the Euro is the way forward for us at the moment as would we not only be putting our stable economy at risk, but we would lose further control of our country and therefore lose more of our national sovereignty which, as a whole, we are very proud of. ?? ?? ?? ?? ...read more.

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