Should Britain Join the Euro?

MarkLS12

robpw2 wrote: »

the pound is worth more than the euro .
the euro historically in the countries it was introuduced to has pushed up prices of eeveryday products compared ot the old currency etc

The fact that ONE pound is worth more that ONE euro doesn't make one better than the other.
That's like saying Litres are better than Pints.

The introduction of the euro pushing up prices is an urban myth.
Some prices went up, but prices go up all the time, it's called inflation.
Prices of other things went down, as the euro made competition easier.
Look at the inflation rates in the Eurozone countries at the time of euro introduction, there is no particular spike.

mee_2

£1 = €1.09 this morning. This time last year £1 was €1.40

Monetary policy has so far been useless in dealing with the recession, so the arguments for an independent currency and hence independent monetary policy are looking pretty weak...

-- Mike

blued

Chelsea_Boy wrote: »

Why does Britain always insist in being the odd man out in Europe? Either join fully or pull out altogether.

Less than half of European countries use the Euro, so we're hardly the odd man out!

Niksan

I remember a few years back when the pound versus the dollar was at £1-$2.30 or so, this happens a lot when the interest rates nose-dives, and probably why another 1% cut this month was put on hold, due to the exchange rate, it's all well and good saying we should join the Euro now there's not much difference, but that's just wanting your cake and eat it, this could be resolved by putting the interest rates back up, but would totally balls the rest of the economy, should we join the Euro ? no idea, depends on what implications taxation has and what not as I'm sure it's not just a case of having a different coin in your pocket.

luckyfool

MarkLS12 wrote: »

The fact that ONE pound is worth more that ONE euro doesn't make one better than the other.
That's like saying Litres are better than Pints.

The introduction of the euro pushing up prices is an urban myth.
Some prices went up, but prices go up all the time, it's called inflation.
Prices of other things went down, as the euro made competition easier.
Look at the inflation rates in the Eurozone countries at the time of euro introduction, there is no particular spike.

I was in Berlin a couple of weeks ago and visited a city centre supermarket. Even with the garbage exchange rate everything was significantly cheaper than the equivalent products in the UK.

asandwhen

Im really suprised that this is so close - I would have expected the result to go the other way really - Im not sure I would like the Euro now as it wold mean we would get a poor deal - maybe if it gets back to 1.50 we should do it.

michaels

The current crisis is demonstrating what a bad idea the euro is and it is being taken as an excuse to join...hello?

Lets take Ireland as an example - joining the Eur brought them too low interest rates (the rate is set for Europe as a whole. not individual countries as there is only one rate) resulting in a huge boom and now a massive hangover, even worse than us - and of course they can not adjust interest rates to cushion the downturn either. So can they use a fiscal boost instead? No, there are rules against this to prevent individual countries running up huge debts that are gaurenteed by all EUR countries.

The crisis has demonstrated why european countries need their own interest rates. The UK may have suffered but that is because our interest rates were too low at 5.5% - imagine what the property boom would have been like with rates at the EUR level of 4% peak!

Please someone explain to me why they think it is a good idea.

unmissable

I have a chance to vote for the party I believe will look after the interests of British citizens best. My party may not always win, but atv least I had the chance to make my opinion matter.

The interest rate is set by an 'independant' B of E (but they are still British!).

My country (quite rightly in my opinion) is still willing to use Europe as a pick and chose 'club'.


The price increases when Euro was first introduced were a one off and the window of opportunity has gone... forget it.

It is only the last 2 or 3 months where any 'expert' has started to think that the Euro might be better, and that is only because every country's economy is a bit frail at the moment.

I have lived and worked in Europe for several years, and will stick with the £ every day.

indierocker85

I can't believe how close the results are, does nobody care about the sovereignty of our native currency sterling? Or its history? Or even OUR history? The recession is due to banks and the BofE charging high interest rates and claiming back more money than is physically in circulation. Companies cant make ends meet, they pass on high prices to customers, customers cant manage, they stop spending = Companies go bust. Banks then penalise personal bankers to recoup losses in business debts. Joining the Euro wouldn't change diddly squat. BofE are doing there bit by lower the base rates, now the banks need to pass the cut on, but they are not. A change of currency would make no difference to our economy, we'd simply pay for everything with a different coin and note. Ones, which in my opinion are uglier than monopoly money.

minimike2

High interest rates? I think not........ try LOW interest rates have caused too much money to be lent which people couldnt pay back, which caused global financial turmoil, which caused the recession.