• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Outline the arguments for not joining the Euro.

Extracts from this document...

Introduction

Outline the arguments for not joining the Euro. There are numerous arguments that the British government have recognised outlining their decision in not joining the Euro. If Britain joined the euro they would only be one voice out of twelve countries, meaning less influence on policies. Once Britain signs for the euro they would be joined into an irreversible agreement. Many European countries have a desired goal of joining to create a 'United States of Europe' which would involve the submission of Britain's sovereignty and subsequently their global independence as a currency. The British public have voiced their enthusiasm towards having a more localised political management system. The introduction into the Euro means that the political powers of electorates would not be as strong on a local scale if the interests of mainland Europe were to be influential as well. It would create almost a disenfranchisement of political power in Britain away from a local level and more towards a national level. We only have to look at the poor turnout in Britain at the elections for the European parliament to see the disinterest that people have about joining. ...read more.

Middle

In recent years the Bank of England has proved very successful at controlling inflation making Britain no longer the high-inflation capital of Europe, but having a similarly low level to Germany and France. Britain's economy is so out of step with other mainland Europe countries that it would only be to our disadvantage join. One reason why our economy is out of step to that of mainland Europe is partly because we have much closer ties to North America than they do. More than half our trade goes outside Europe, and most of our trade is done in dollars. Over the past three economic cycles the British economy has been seen to be more similar to that of North America than with Europe. Evidence of this is that since the pound fell out of the exchange-rate mechanism in 1992, it has remained relatively stable against the dollar, but very volatile against European currencies. However, the euro has been very volatile against the dollar, so locking the pound to the euro would actually mean more currency instability for the majority of exporters, not less. In contrast, countries on the European mainland do a higher proportion of trade with each other, and their economies are far more integrated. ...read more.

Conclusion

Euro countries will economically progress as a team due to a more integrated trading pattern between them, resulting in greater competition between the different countries companies and providing a greater incentive to invest across boarders. Britain on the other hand will be left on the edge of Europe with a loss of support and trade from its closest trading allies. To conclude with I would say that the positive aspects of deciding to stay an independent currency would be a sensible decision in an attempt at keeping the British economy as stable as it is at present. I think that joining a 'one size fits all' interest rate could only do more harm than good, especially on this large a scale of an operation. If other Euro countries were to be in recession and interest rates were fixed to aid these countries then it would be our economy that would suffer as a result. The time and effort involved in changing currency will be wasting our attentions towards more vital aspects that need attending too such as the NHS. If we were not to join though we may be left out of what could be a globally dominating currency in future years to come. The Euro can only really strengthen over time, especially with internal trade between Euro countries made easier with the single currency. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Retailing In India - A Government Policy Perspective

    This neglect of market seeking FDI alienates a huge section of potential investors. Simplification of Processes: In FDI and in a lot of other areas, the Indian system is bogged down by excessive bureaucracy and complex processes. There is tremendous scope for a huge amount of simplification in the existing processes and systems.

  2. Review of Strong Interest Inventory.

    coefficients of 0.89, 0.86, 0.82 and 0.83 for the four samples respectively. Alpha coefficients for the Basic Interest Scales were in the range of 0.74 to 0.94 with a median of 0.87. Basic Interest Scales retest reliability coefficients were in the 0.66 to 0.94 range with median retest coefficients of 0.86, 0.85, 0.80 and 0.83 for the four samples.

  1. ASSESS THE EFFECTIVENESS OF ECONOMIC PLANNING IN BRINGING ABOUT STABILITY AND PROGRESS IN GERMANY ...

    was progressive as re-armament was part of Germany's war effort, and a push towards autarky. However it can be argued, that the policy of rearmament, although successful in that it resulted in a hugely funded and expanded army, resulted in food and fuel shortages, and thus the average worker in Germany suffered, and thus stuttered Germany's economic progression.

  2. Should the UK join the Euro?

    Alternatively, countries may experience an overall rise in the cost of borrowing, due to borrowing of governments with economic difficulties. Unemployment is also of concern, as certain jobs are made obsolete through participation, this would include people employed to do such things as currency exchanges and transactions.

  1. The Euro.

    Explain one way in which British firms might respond to the situation. A way in which British firms could respond to the problem of imports exceeding exports in the UK is through an expenditure switching policy. British firms could introduce tariffs or other types of import controls to make imports more expensive and reduce demand.

  2. The Euro.

    Since numerous companies have stated they will pull investment in the UK if there is no sign of joining the Euro, the fact that the Euro-zone has lower interest rates (the cost of borrowing to invest), and the reduced transaction costs and increased convenience of a single currency lead me to conclude overwhelmingly in favour of this test being passed.

  1. Analysis of some fundamental arguments claimed by Albert Hirschman and Gunnar Myrdal

    The new economic activity and its multiplier effect help to expand the service sector, especially as local growth increases the size of the economy sufficiently to meet the threshold for new service activities. Increases in population in turn can spark a secondary multiplier effect as new investment enters the economy to serve expanded demand.

  2. The Euro Debate

    Moreover, in order to ensure a lasting budgetary convergence, a 'Stability and growth Pact' has been adopted, in which all Member States acknowledge the need for sound fiscal policy to ensure the proper functioning of EMU. Participants in the euro area will adopt medium-term programmes aimed at a budgetary position

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work