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The Euro

On September 29th 2000 the Danish people voted not to adopt the Euro. 53.1% of the Danish people voted against joining the single currency and 46.9% in favour. The result disappointed many pro-Europe politicians and business leaders.

What about Britain - should we join the Euro? Feelings run high on both sides of the debate and below we look at some of the arguments.

The two views below outline opposing sides of this argument. Click on the links to find out more about the business and economic ideas underlying the argument.

No! I'm totally against joining

Yes! We should join the Euro

	The result in Denmark shows that people are fundamentally opposed to joining the Euro.
			The vote in Denmark was a close one and there are many differences between the Danish and UK situation.

Denmark vs. UK

	Well we weren't the only ones who didn't want to join the single currency. Three other countries didn't take part.
			Well yes, but the Danish have had a vote on it (and their government at least wanted to join!), the Greeks have applied to join and the Swedish government are pro the Euro and planning a referendum, so we do look a little isolated.

Converging on Europe

	The Tories have got the right idea - they don't want us to join. I'll be voting for them.
			Actually they have only said they wouldn't join in the next Parliament, they haven't dismissed it totally. At least with Labour we will be having a referendum in the next Parliament so that the people can decide.

Let the people decide?

	Membership of the ERM (1990-1992) was absolutely disastrous for us. We were forced to leave and spent a fortune protecting sterling. Why should we want to go back to that?
			Yes, but remember that the ERM was just a system where we linked exchange rates in Europe together. The single currency is a very different thing as it locks currencies together completely.

To fix or to float - what determines the exchange rate?

	When we left the ERM unemployment was over twice as high then as it is now and unemployment in Europe is a lot higher than here. Joining a single currency will just increase it again
			Unemployment depends on a lot more than just the exchange rate. In fact sterling has been so strong outside the Euro that this is more likely to have caused unemployment than being in the Euro.

The UK works, Europe doesn't?

	Leaving the ERM cost us a fortune in supporting the pound - why should we want to go through that again?
			Once we are in a single currency, we will not need any reserves to support the currency as all currencies will be one.

Black Wednesday - 16th September 1992

	If we join the single currency we will lose control over our monetary policy and have interest rates set by Brussels.
			One of the first acts of the new Labour government in 1997 was to give the Bank of England operational independence and give them control over interest rates. Being in the single currency hands that power onto the European Central Bank.

Who has the most interest - UK or Europe?

	If we join the Euro Brussels will take control over our tax and spending so that we lose our sovereignty.
			Some harmonisation of taxes is already a part of European policy and will happen whether we join the Euro or not.

Who is more taxing - UK or Europe?

	Prices are bound to rise if we join because of the costs of changing over to the Euro.
			There will be significant changeover costs to switch from sterling to the Euro, but any companies who trade overseas have already had to switch their systems to cope with the introduction of the Euro.

Who's costing who what?

	What has Europe ever done for us anyway except impose regulations and raise costs for average consumers? Why should we bother with the Euro.
			Joining the Euro will make pricing by companies much more transparent and give consumers a much better deal.

Seeing through prices