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

Britain and the Eurozone. Britains May 2005 parliamentary elections produced some very telling answers for the coming direction of EU policy in the United Kingdom.

Extracts from this document...


Britain's May 2005 parliamentary elections produced some very telling answers for the coming direction of EU policy in the United Kingdom. The election simply came down to a referendum on the performance of Prime Minister Tony Blair, particularly on his actions in Iraq. Voters voiced their opinions by slashing some 100 seats from the Labour party's majority. Conservatives and Liberal Democrats saw the largest gains, and the Labour party's popular vote share shrunk from 41% to 35%. Some in the Labour party have been calling for Tony Blair's head, and in an effort to infuse the party with new life and distance itself from the politically disastrous Iraq conflict, calling for Gordon Brown to be the new PM. As the Eurosceptic Conservatives gained more seats and the likelihood that Blair may be removed in favor of his rival Gordon Brown, I see no new shifts in policy to move Britain into the Eurozone. While there are advantages and disadvantages for Britain adopting the euro, the recent Iraq conflict as well the failure of the euro to pass the five part test and problems with a referendum on the issue will keep the UK out of the Eurozone. The arguments for the UK staying out of the Eurozone are divided into three parts: 1. ...read more.


First, it is now widely recognized that the Stability and Growth Pact not only places pressure on weaker economies, but also no longer coincides with the interests of the stronger ones, including Germany. Since Germany signed the Maastricht Treaty, its unemployment rate has risen from 4.5% to 9%. Germany's growth rate for 2001 was the lowest of all 15 EU member states"4. Under this current climate it seems hardly advantageous for Britain to enter the EU. Current figures for 2006 place the struggles in both France and Germany in present day perspective, as "Over the twelve months to July 2004, the standardised unemployment rate in France remained at 9.5%. In Germany, the rate was 9.9% in July 2004, 0.2 percentage point higher than a year earlier. In Canada, the standardised unemployment rate was 7.2% in July 2004, 0.5 percentage point lower than a year earlier. In May 2004, the rate in the United Kingdom was 4.7%, 0.2 percentage point lower than a year earlier. In January 2004, the standardised unemployment rate in Italy was 8.5%, 0.4 percentage point lower than a year earlier."5 Both political leaders and the citizenry of the United Kingdom have seen the negative economic affects seen by the implementation of the Euro as currency and henceforth the vast regulation associated with the EMU. ...read more.


Hutton points out some valid problems in Britain's economy but his rationale in thinking that the answer is adopting the euro is wrong. Britain needs to tailor its economic policy to fit its unique and dynamic economy. The economy of Britain is much more similar to the United States than the rest of the Eurozone, and a move into the Eurozone could result in the same problems that Germany has faced in the last decade. There is no doubt a problems exit in the British economy and government, from a trade deficit caused by its devastated manufacturing sector to governmental problems with the soaring costs of healthcare in a welfare state. This being as it may the UK is better off staying out of the Eurozone and using its liberal fiscal and monetary policies to fix its problems. The current political landscape promotes Britain staying out of the Eurozone, as the Labour party has done little besides rhetoric in its move to become more inline with the "Continent". With Conservatives gaining more seats in the recent election to voice their "Eurosceptic" ideas, and the 2003 report by Chancellor Brown showing that the euro project failed the "five tests", the course promoted by Blair of balancing Britain's role in both UK-EU and UK-US relations will remain the same for some time and Britain will not "take the plunge". ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree UK Government & Parliamentary Studies 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 University Degree UK Government & Parliamentary Studies essays

  1. Marked by a teacher

    Critically assess Rhodes' (1997) argument that 'Policy networks of resource dependent organisations are a ...

    3 star(s)

    Policy networks are considered to be a major challenge to the gatekeeper role of the British government. Their existence highlights the importance of informal processes and relationships in policy-making, and particularly in policy initiation. Hollowing-out is part of the of the differentiated polity model.

  2. Why did turnout decline substantially between the British general elections of 1997 and 2001, ...

    249), showing that voters turned out in greater numbers when there was a close competition (this is also discussed with regards to the 2010 election later on). Trust in politicians was still low, but nevertheless improving. The MORI poll on trust shows gains for every key politician with the exception of Tony Blair.

  1. Is there justification for government intervention in the uk housing market and how has ...

    Firstly it concerns the access to adequate housing generally. A past aim of government was to ensure that housing needs of vulnerable groups were met and given priority, this idea has been carried into and given greater emphasis in the government Green Paper 'a decent home for all.'

  2. Critically examine government attempts to deal with the problem of unemployment in inter-war Britain.

    American and European industries were quick to develop more advanced machinery then anything in Britain. Once these countries reached full production, British exports of coal and steel decreased. Certain industries were expanding although they were concentrated in the South of England.

  1. What impact did the Thatcher years have on Britain's economic structure?

    The amount of home owners increased massively with the sale of council houses and 'right to buy'. This resulted in house prices dropping because there were so many on the market. Many people who had bought houses in the south-east of England in 1987 found a few years later that

  2. What was the effect, domestically and internationally of Blairs support of Bush in the ...

    war carried out in even stricter ways.5 Andrew Gamble calls it an erosion of civil liberties hinting the increasing control and surveillance methods in the public sector.6 Fears that Britain could become a surveillance society arose early. In 2006 people were afraid that the country could just sleep-walk into an

  1. Voter Turnout in UK General Elections 1997 2005

    A low voter turnout can also call into question the democratic legitimacy of a Government, representative government theorists would argue, however, that this is not the case; 'Theorists of representative government see no particular intrinsic merit in securing high turnouts at elections.

  2. How successful is British Drug Policy?

    As a tool it has shown much success in other areas of social life. Counter to Blackman's view, we need to take a different approach to drugs education rather than abandoning it all together. Just because the hammer is being used the wrong way round does not mean that it will not hammer a nail if used correctly.

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