will UK join the Euro in the new year ?

£1 = 1.15170 Euro as 6-dec-2009
Will the UK  join the Euro in the next year ?
K...

No, we won't. 

The pound may be at it's lowest to the Euro now, but this was different a few months ago and it will be different again.  There is a lot more to membership of the Euro than simply currency. 


Vicky

There is a lot more to membership of the Euro than simply currency. 

Yup. We'll have to eat croissants for breakfast, install bidets, drink responsibly, pick up our litter, say "Cago en Dios per favore monsieur" instead of "bloody hell" when we swear... and that's just the start.

I was actually thinking of setting interest rates and controlling inflation....


Vicky

I don't think it'll happen for a long time, if ever. I think the UK will remain a monetary outlier, like Switzerland or Norway, and will remain at the mercy of international financial events. I agree with William Buiter who says that there is no reasonable argument for a small, highly open economy like Britain to retain monetary independence, and that the belief that an independent national monetary policy allows you greater greater scope for effective macroeconomic stabilisation is an example of the monetary fine-tuning fallacy.

http://blogs.ft.com/maverecon/2008/05/when-will-the-uk-wake-up-and-join-the-euro-area/

     "To have a large, internationally active banking sector and financial system, your currency has to be a serious global reserve currency if you are to be able to provide the lender of last resort and market maker of last resort services required to minimize the risk of a bank run or market liquidity crunch bringing down large chunks of your banking system. You can decide to take the risk of running a large globally active financial sector with a local currency like sterling or the Icelandic krona, but you will be taking an unnecessary and costly risk. Sooner or later that risk will be reflected in your cost of capital and make you uncompetitive.

     So, if the UK wants to remain the seat of the world's financial capital, there is only one choice: adopt the euro now, and wonder why you did not do so in 1999."

He says, interestingly (and ominously):

"It is not much of an exaggeration to describe the UK as a hedge fund, a highly leveraged entity, borrowing shorter than it 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."

We all know (now) what happens to hedge funds when the music stops.

But with a growing Eurozone with countries with wildly differing economies I still think it makes more sense for individual governments to have control over inflation. 

I agree with GB's five economic tests, and as long as these are not met then it won't happen.  And, my views aside, it won't happen as long as Brown doesn't want it to.

Vicky

I think it would be foolish for the UK to adopt the Euro. In fact, the euro zone is growing much too quickly lately. I think there should be no new members until there is more stability financially among the current euro zone members.

£1 = 1.15170 Euro as 6-dec-2009
Will the UK  join the Euro in the next year ?
K...

No - you do realise how much work will be needed to implement it - working in IT it would be almost on a par with the Y2K stuff, I might decide to go contracting if we do decide to join though!

No chance..i dont think it will happen and i dont want it to happen.

I think it will happen, within the next ten years, and when it does I will be so proud that Britain has taken its proper place in the European family of nations. After all, the Windsors are Germans really, so the Queen's head isn't so British really.

I think it will happen, within the next ten years, and when it does I will be so proud that Britain has taken its proper place in the European family of nations. After all, the Windsors are Germans really, so the Queen's head isn't so British really.

Heh. Well, if that's how it works, y'all get to claim this guy! 

There was an interesting discussion on this matter in the Daily Politics programme. At the time of writing this BBC webpage has a prominent link to the discussion.

I strongly suggest that anyone with an interest in this subject views that discussion. I think the ex-MEP ... a Tory ... sums it up nicely. Given the inability of the UK Government to borrow as much as it wants ..... or at least it will struggle to do so ... it is totally inevitable that the UK will join the Eurozone .... and in the reasonably near future.

No - you do realise how much work will be needed to implement it - working in IT it would be almost on a par with the Y2K stuff, I might decide to go contracting if we do decide to join though!

Not if the joining rate is when the Pound sinks to £1 = €1 ! Waiting until after the Pound is worth less than a Euro would of course be a disaster.

it is totally inevitable that the UK will join the Eurozone

Couldn't put it any clearer. Thank you.

It's not inevitable.  You all still have a choice.  Do you really want the French and the Germans (who have historically been your Arch-Nemeses or do you have a short memory?) controlling your money?  I wouldn't.  I personally would go mad if the United States joined a common currency with Canada and Mexico.  Where is Britain's sense of sovereignty?  This country hasn't been conquered in a thousand years by a foreign power.  Why are you now letting greedy, corrupt, E.U. bureaucrats in Brussells who aren't accountable to you conquer you with their rubber stamps?  Remember, you have a choice, get rid of the 3 parties in power, and vote for someone who actually respects your sovereignty.  Do you want to be British or European?  Do you want to fly the mighty Union Jack or some stupid new flag with no legacy, that looks like it is modeled after an analog clock with friggen Blockbuster Video colors?  The choice is yours.  It is not too late!  Don't let them do this to you.

You can be friendly with your neighbors without handing control of your bank accounts to them!!!  By joining the euro, you will be surrendering your gold reserves and your currency reserves to the same powers who have tried to destroy you for so many centuries.  This is a scam.  I hope you all realize it.

Juniormint, the tome and language of your post reminds me of a UKIP rant. I'll make a deal with you. I won't tell you what's right for your country, if you won't tell me how to run mine, OK?