UK shouldn't be allowed to join the Euro

seabhcan

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BBC NEWS | Politics | UK 'closer' to adopting the euro

The UK is "closer than ever before" to joining the euro, according to the European Commission's president.

Jose Manuel Barroso told French radio that British politicians were considering the move because of the effects of the global credit crunch.
Are plans in the works to allow the UK into the Eurozone depite it breaching just about every membership criteria? It was a disaster when Italy and Greece were allowed in without being ready. Add the UK to the mix and the euro will float like an anchor.

The UK needs to be allowed to go bankrupt.
 


D

Duth Ealla

there is some serious opposition to having the UK join the Euro over there. How would Labour get away with bringing the UK into the Euro zone this side of an election.

it would be a huge electoral liability and even if it saved them somehow economically the electorate would not be impressed.

Dont think the Broon et al. will be too impressed to have Mr Barroso interfering.

Still the Brits are in a world of sh!t and a severe run on the pound would be scary.

I am guessing this would need to be passed through the house of commons to take effect. Could they muster the support.

Cant see the DUP and UUP voting for this. Or maybe Euro incentives are as good as Sterling incentives.
 

Aindriu

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The UK likes old Liz's head on their currency too much. They will never join the Euro. This is just the President of the EU blowing hot air.
 

baldur0300

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Considering the fact that there would always be the political threat to withdraw, especially if a conservative government came to power, they could destabilise the entire currency. While it might be handy for us, they cannot be allowed join.
 

forest

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damn you I was about to post on this after reading it on Euobserver.
I very much support the idea of the UK joining the euro, it would be a major victory for the pro EU stance in the UK and well in the rest of the EU
I have always said that if the UK as a whole or any of its home nations individually joined the euro I would head over to London for those celebrations
I would love and pray to see the great british pound confined to the dustbin of history were it belongs.

In saying this I understand were you are coming from I feel the UK needs to reach the criteria to join the euro as set out in Mastricht (although i am willing to allow flexibility)
but if it does bring them on.

I head Thricket say a few weeks ago that he believes that the UK will join after the financial crisis (2010 or so)
He and Barrosso would not be making such claims I feel if they did not believe it to be true

If the Uk and its still a big if does formally apply to join the eurozone (with or without a referendum) the government would have taken such a huge gamble taking on the red tops and other hostile media and anti eu influences in the UK that to denie them entry would be a big mistake

In related news some are predicting the pound could be worth less than a euro by summer
 

Kevin Doyle

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The UK likes old Liz's head on their currency too much. They will never join the Euro. This is just the President of the EU blowing hot air.
They will join if the economic crisis demands such action to prevent the pound being torn to shreds on the monetary markets.

'Old Liz's' head would still be on the Euro. It might grate more with die hard republicans this of the Irish Sea having such currency as legal tender here.
 

ivnryn

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'Old Liz's' head would still be on the Euro. It might grate more with die hard republicans this of the Irish Sea having such currency as legal tender here.
Only on the coins though. I wonder if they would stay in circulation in Ireland, or if shops would turn them into banks. You could end up with people not wanting them as change.
 

Kevin Doyle

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Only on the coins though. I wonder if they would stay in circulation in Ireland, or if shops would turn them into banks. You could end up with people not wanting them as change.
I honestly can't see that being a problem, especially in the medium to long term as the novelty wears off. I would imagine people don't inspect money by and large for reasons to be offended.
 

seabhcan

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Only on the coins though. I wonder if they would stay in circulation in Ireland, or if shops would turn them into banks. You could end up with people not wanting them as change.
Liz was the first King/queen to be on the notes as far as I know. She wont be around for ever and I think the brits wont be as sorry to see Charles's head replaced with a few bridges.
 
D

Duth Ealla

An interesting analysis of the issue:

There is another powerful argument for the UK to adopt the euro yesterday. The UK has a very large financial and banking sector, which conducts much of its activity by buying and selling financial instruments denominated in foreign currencies rather than in sterling. As a country, the UK has massive gross external liabilities and assets. These are well over 400 percent of annual GDP each, as compared with under 100% of annual GDP for the USA and around 700% of annual GDP for Iceland. It is not much of an exaggeration to describe the UK as a hedge fund, a highly leveraged entity, borrowing shorter than in lends and invests. It has a lot of short-maturity foreign-currency-denominated foreign liabilities and quite a lot of illiquid, non-sterling denominated foreign assets
It’s not a bad way to make a living, but it means the country needs a lender of last resort and market maker of last resort. It has one for sterling-denominated financial instruments. The Bank of England, after malfunctioning temporarily following the onset of the crisis in August 2007, now performs this function effectively. The Bank of England, however, cannot print euros, dollars, Swiss francs or yen. That means the Bank of England cannot be an effective lender of last resort or market maker of last resort if UK banks find themselves unable to roll over their foreign-currency-denominated short-term liabilities or if they find themselves unable to sell their foreign currency-denominated assets in international wholesale markets that have become illiquid.

full article : FT.com | Willem Buiter’s Maverecon | When will the UK wake up and join the Euro Area?
 

seabhcan

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If the Uk and its still a big if does formally apply to join the eurozone (with or without a referendum) the government would have taken such a huge gamble taking on the red tops and other hostile media and anti eu influences in the UK that to denie them entry would be a big mistake

In related news some are predicting the pound could be worth less than a euro by summer
If the euro was worth more than the pound, I can see that changing a lot of people's minds - particularly the owners of the red tops, who will have lost a lot of money.
 

forest

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what before the euro, irish shops took serveral Uk coins such as 1p 2p 5p and 50p
If the Uk joined the euro or was already in ,I would 1 in 2 coins would be a UK euro coons

My father was handed an old irish 5p coin last month in London he did not realise til later
 
D

Duth Ealla

They will join if the economic crisis demands such action to prevent the pound being torn to shreds on the monetary markets.

'Old Liz's' head would still be on the Euro. It might grate more with die hard republicans this of the Irish Sea having such currency as legal tender here.
This side of the Irish sea sterling is legal tender and even in the southern state low denomination sterling coins were accepted during the time of the punt so not sure that it would be much of a problem for Republicans.

I would think that most Republicans would be happy to see Sterling replaced by Euro if it:
(a) stabilises the nearest economy to our own and thereby assists our own island economy; and
(b) Provides a very significant step towards bringing both elements of Ireland's island wide economy together.
 

forest

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(b) Provides a very significant step towards bringing both elements of Ireland's island wide economy together.
It would.
I am a euro nationalist/patriot not an irish one but I strongly hold the belief that if the UK was more pro Eu (of which I see the euro as the biggest sign) than unity at least in peoples head would be closer

I wonder if this story is going to grow legs will it be on the Uk current affairs shows tonight (by which I mean Newsnight)
 

Kevin Doyle

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This side of the Irish sea sterling is legal tender and even in the southern state low denomination sterling coins were accepted during the time of the punt so not sure that it would be much of a problem for Republicans.

I would think that most Republicans would be happy to see Sterling replaced by Euro if it:
(a) stabilises the nearest economy to our own and thereby assists our own island economy; and
(b) Provides a very significant step towards bringing both elements of Ireland's island wide economy together.

I was speaking mainly about the dissidents south of the border. I agree that if Britain adopts the euro it would be one less obstacle in the removal of that border.
 

seabhcan

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I was speaking mainly about the dissidents south of the border. I agree that if Britain adopts the euro it would be one less obstacle in the removal of that border.
Actually it would probably make removing the border less important. If we were both in the euro and both in schengen, whould anyone care about the border anymore?
 
G

Gimpanzee

Only on the coins though. I wonder if they would stay in circulation in Ireland, or if shops would turn them into banks. You could end up with people not wanting them as change.
You've a short memory. Until 2002 any British coin that was the same size and value as the Irish equivalent was accepted everywhere. Having a mix of queens heads and harps in your pocket was completely unremarkable.
 

Aindriu

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Actually it would probably make removing the border less important. If we were both in the euro and both in schengen, whould anyone care about the border anymore?
Try telling the Unionists they don't care about the border :D
 

seabhcan

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You've a short memory. Until 2002 any British coin that was the same size and value as the Irish equivalent was accepted everywhere. Having a mix of queens heads and harps in your pocket was completely unremarkable.
It would be very interesting to see the mix of coins after the UK joins. With so many southerns shopping north, I can see it becoming hard to find an harp in your pocket at all.
 


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