Discuss Whether The UK Should Join the Euro?

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Liam Stuart 13GPG        The Euro        Economics        

Discuss Whether The UK Should Join the Euro? [25]

  The case for Britain to join the Euro has many advantages and disadvantages. If the decision is to join the euro, it will be because the advantages will outweigh the problems and so joining will benefit the UK economy.

A large advantage to joining the Euro is that there will be easier trade and may even increase trade as there will be a single currency within the European Union. Time and money will be saved as currency will not have to be converted when trading. This is also in the public’s interest as they will also not have to exchange money when going on holiday. This will encourage many more people to go on holiday not only out of the UK, but may also boost the tourism industry in Britain.

By joining the Euro, there will be no need for the British government to use interest rate controlling policies as the EU will set a general rate that all members have to follow. This will enable the government to concentrate on other problems that they may face such as unemployment and will allow more money for investment in other policies to diffuse this problem. However, joining the euro it self can be seen as a policy to bring down unemployment as the mobility of labour will be increased. With a single currency across Europe, it will allow people to move to another country more easily than before as savings and other money does not need to be exchanged, saving time and money.

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Another large effect of joining the Euro that will positively benefit the economy will be the ability for increased foreign direct investment. With the single currency, many firms from other countries within the EU will be able to invest more directly as there will be no need for money exchanges. There will be no exchange rates to worry about  which will enable firms to incest the exact amount that they want rather than a lower figure due to the £ being too strong.

There are not only advantages to joining however; there are also many disadvantages to this. ...

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