why doesn't the united kingdom use the Euro?

Answer by wiggert
Submitted on 5/3/2004
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JOHN ASHTEAD: UNITED KINGDOM: EURO v TO BE OR NOT TO BE? As the United Kingdom prepares itself for a landslide victory for Prime Minister Tony Blair-s Labour Party, the question about whether or when the UK joins the European Single Currency (Euro) is posed. Declaring himself in favour of the Euro in principle, Tony Blair is confident that he can persuade the sceptical British public to vote ?yes¦ in a referendum, but recent statistics show a different picture. The Confederation of British Industry (CBI) represents 200,000 British companies, which in theory would be more in favour of joining the Euro than the public in general, since the companies have more to gain through tangible results (exchange rate stability and an absence of need to pay exchange rate duties to banks). However, recent statistics point towards a generalised scepticism, much greater than would be expected from the business community. Starting with its Chairman, Digby Jones, who has only recently begun to consider the Euro as an important issue, the CBI-s last internal survey showed that only 30% of its members were in favour of membership of the Single Currency, but never before 2005, the end of the next Parliament. Another 22% was in favour ?in principle¦ but did not stipulate any firm date. This means that at best, the CBI is split 50/50 on the issue and the 50% in favour could not be less enthusiastic. ?Our members are split pretty evenly on the issue, so we do not feel it is up to us to take a stance,¦ said a CBI spokesperson. This news comes as a blow to the pro-Europe Labour party, since the backing of British business will be necessary to persuade a sceptical public worried about losing the pound, a symbol of national sovereignty, a public worried about the nightmare scenario of seeing the well-coiffured head of Her Majesty Queen Elizabeth II substituted by Jacques Delors, Gerhard Schroeder or Silvio Berlusconi. Currency The relatively good economic performance has complicated the Blair government's efforts to make a case for Britain to leave the Pound Sterling and join the Euro. The British Prime Minister has pledged to hold a public referendum if membership meets Chancellor of the Exchequer Gordon Brown's "five economic tests". The tests are: 1. Are business cycles and economic structures compatible with European interest rates on a permanent basis? 2. If problems emerge, is there sufficient flexibility to deal with them? 3. What impact would entry into the euro have on the UK's financial services industry? 4. Would joining the euro create better conditions for firms making long-term decisions to invest in Britain? 5. Would joining the euro promote higher growth, stability and a lasting increase in jobs? When assessing the tests, Gordon Brown concluded that while the decision was close, the United Kingdom should not yet join the Euro. In particular, he cited fluctuations in house prices as a barrier to immediate entry. The tests will be reassessed in the future. Public opinion polls show that a majority of Britons are currently

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Question by topher
Submitted on 4/23/2004
Related FAQ: Euro Currency Mini-FAQ
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why doesn't the united kingdom use the Euro?

Answer by C
Submitted on 3/21/2005
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the euro will be dreadful for england if not adopted, reasons are more than obvious and clearly we have been going through that process and the restraint is just around the corner, one extensive example has been the case of Ford which has taken its production operative factory out of England, the reason, simplicity and euro economic facts, Mars inc. has done the same, by means the first examples of the era of decay of a stagnated economy which will lead us to and endemic economic crisis.

Answer by sdfsdf
Submitted on 9/30/2005
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