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Reasons for Joining the Euro

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Introduction

Reasons for Joining the Euro There are many reasons why Britain may want to join the Euro but there are just as many reasons against this proposition. It is up to the government and the people to decide on whether or not to accept this. One of the reasons why Britain should join the Euro is that it will provide more competition between organisations. This will push up the quality of the products and services and will also increase the efficiency of the organisations. Competition always boosts the economy and since the Euro will unite the European countries further, a bigger market will be opened up to the different businesses. Another reason is that it will help poorer countries develop. If their currency is united with the rest of Europe, they can be supported by it. The interest rates set by Brussels will help small, weak economies develop and in times of economic crisis the Euro will support it as all the 'big' countries are with it. ...read more.

Middle

Many times, the companies manage to trick consumers with changing exchange rates but once the Euro comes in, the company pricing will become more transparent and consumers will get a better deal. Everyone wants the Euro except Britain so they are a bit out of place. Having a single currency without one of the major countries not a participant will be a downside as the Euro will have to compete with the pound and will not be as efficient. The pound is so strong outside the Euro that it has probably caused unemployment. Joining the Euro will probably bring unemployment down. Businesses have lost a lot because of the fluctuations and the high prices of the sterling. Their profit margin has sometimes been cut to 0 because of the fluctuations. Having a single currency will eliminate this. There are also some reasons why Britain should not join the Euro. These will help us see whether it is really worth joining. ...read more.

Conclusion

The vote in Denmark was close and there are many differences between its economy and Britain's. Joining the ERM from 1990 to 1992 was a disaster for Britain and it took Britain a lot of money to restore the pound again. The pound was left at an all time low and a fortune was pumped in to restore it to its original value. There is no need to repeat that nightmare, should the Euro be a big failure. Once the Euro is introduced prices are going to increase. The giant cost of the changeover will push up the prices to generate the funds lost in the changeover. Europe has never really done anything for Britain except impose regulations and increase costs. Why should Britain suffer a loss and help Europe? In conclusion, I think that there are valid reasons on both sides of the debate but it is just a matter of opinion as to which argument affects you the most. It will be up to the people of Britain. Navdeep Gill 10E Mr. Hansen ...read more.

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