UK closer to joining the euro

[Zoomerang96]

not much of a surprise, really. especially given how the pound has dropped dramatically in recent months to both the dollar and euro respectively. surely this would make the euro that much stronger, wouldn't it?

BBC NEWS | UK | UK 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.

Lord Mandelson said at the weekend that "our aim" should be to join the single currency - but Downing Street said its position on the euro remained the same.

The Tories called the reported talks about the euro "extraordinary".

In 1997 Gordon Brown, seen as less keen on the euro than Tony Blair, set five economic tests which had to be met before ministers would recommend UK euro entry and holding a referendum.

The key test is whether the UK economy is coming together with those of countries in the eurozone and whether this can be sustained in the long-term. The second test, linked to this, is whether there is sufficient flexibility to cope with economic change.

The remaining three tests assess the impact of joining the euro on jobs, foreign investment and the financial services industry.

 

[pgv]

About bloody time!

I can't see it happening in the near future though, especially after the results of the Irish referendum this summer. Public opinion is pretty divided here still, too.

 

[financeguy]

Listen, the euro, sterling, the dollar - ALL are fiat currencies, in a race to the bottom.

The British people will never vote to ditch the pound. That said, a sleazy behind the scenes deal by the politicians is entirely possible.

 

[purpleoscar]

I like different monetary policies in different countries. Some countries under the Euro experience different levels of inflation than others requiring more targeted rate changes. It allows for countries that have the best policies as an example that others can follow. If the Euro weakens for some reason all countries under the Euro get affected.

A world currency would be even worse.

 

[the iron horse]

Listen, the euro, sterling, the dollar - ALL are fiat currencies, in a race to the bottom.

The British people will never vote to ditch the pound. That said, a sleazy behind the scenes deal by the politicians is entirely possible.

I hope the British don't bow to the EU.
Are the Irish still free?

 

[Vincent Vega]

Are the Irish still free?

No, we detained them all yesterday.

But no, the Irish already introduced the Euro, if that is what you mean with free.

 

[Irishteen]

I hope the British don't bow to the EU.
Are the Irish still free?

Free from what?

 

[pgv]

I hope the British don't bow to the EU.
Are the Irish still free?

I don't know if you're British, but I am and fully agree with the EU currency. If you consider completing our membership and reaping the benefits of a single currency 'bowing' under the EU, then I certainly hope we bow under.

 

[the iron horse]

I don't know if you're British, but I am and fully agree with the EU currency. If you consider completing our membership and reaping the benefits of a single currency 'bowing' under the EU, then I certainly hope we bow under.

I guess we should all hold hands and sing "We Are the World"

 

[pgv]

I guess we should all hold hands and sing "We Are the World"

Well, that's horrifically off topic, but I suppose doing that would be better than killing each other instead... right?

I'm European, I like Europe. I don't see what's wrong with being a united nation. Especially if it makes England a better place by doing so.

 

[BVS]

I guess we should all hold hands and sing "We Are the World"

I find this kind of sarcasm strange coming from a very vocal Christian, I would think unity would be something to strive for...

 

[Irishteen]

I guess we should all hold hands and sing "We Are the World"

Maybe we should all make out-there comments that make no sense and when someone questions us, we should ignore them? Oh darn it some of us already do that

 

[financeguy]

I'm European, I like Europe. I don't see what's wrong with being a united nation. Especially if it makes England a better place by doing so.

Guardian reader, then?

 

[financeguy]

I find this kind of sarcasm strange coming from a very vocal Christian, I would think unity would be something to strive for...

"Revelation 13:16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
Revelation 13:17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. "

 

[pgv]

Guardian reader, then?

..and the Observer, on a Sunday

 

[BVS]

"Revelation 13:16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
Revelation 13:17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. "

Yes, I'm well aware of the Revelation paranoia that some will try and assign events like this, every year for centuries these passages have been used to make people fear what they don't know, the latest I heard was Obama and how he fit every description of the anti-Christ.

And if memory serves me right iron horse has made Revelation allusions to such things in the past...

but it still doesn't quite explain his often used answer of "we should all hold hands and sing 'we are the world'".

 

[financeguy]

http://blogs.telegraph.co.uk/ambros...ng_the_eurozones_weakest_link_starts_to_crack

From the comments:-

I would say that the euro is toast. The deficits in Greece, Spain, Italy, Portugal and Ireland are just too much for the lending markets to bear when it comes to rolling over sovereign debt and certainly too much for Germany to step in. The only way out is for these countries to leave the euro and let their own sovereign currency float to its true market value.
In the meantime, mass unemployment in Europe will lead to violent street riots. Once you see the security forces shooting people dead in the street then you know that things are seriously headed downhill.

alanhinruralsuffolk - the UK has had riots on the streets before - remember the poll tax riots in Toxteth and Bristol ? That was only soothed by applying lots of regeneration money into those areas. High tax and mass unemployment coupled with social benefit restrictions will soon enough bring people out on the streets of the UK.
I think 2009 is going to test economies and democracies to the max - and it could be sufficient for some of them to self destruct.

PaulW
December 10

 

[financeguy]

Are the Irish still free?

No.

 

[Dalton]

"Revelation 13:16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
Revelation 13:17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. "

 

[martha]

I have a real question, and hopefully someone can give a me a nice, simple answer because this stuff isn't in my realm of experience.

If the Euro countries did want to go back to their old currency, how hard would that be, and how would it be achieved?

Please don't answer with a question about my opinions on this stuff; I don't have any.

 

[DrTeeth]

I have a real question, and hopefully someone can give a me a nice, simple answer because this stuff isn't in my realm of experience.

If the Euro countries did want to go back to their old currency, how hard would that be, and how would it be achieved?

No clue, but I guess one would have to withdraw from the Maastricht Treaty and go through the lengthy and costly process of putting their own currency back in rotation.

In other news, Iceland considers adopting the Euro:

Iceland is prepared to consider a variety of options to solve its currency problems, including the possibility of adopting the euro without joining the European Union, Prime Minister Geir Haarde said.

Haarde said in an interview Saturday that the financial crisis that had ravaged the Icelandic banking system and currency had underscored the pitfalls of managing a currency in a small, open economy.

"People are looking into the possibility of 'dollarization,' or unilateral adoption of the euro, which would probably raise a lot of eyebrows in the European Union," he said. "And a third possibility might be a currency board," a monetary authority that would be required to maintain a fixed exchange rate with a foreign currency.

"This is an open question at the moment," he added.

Recent opinion polls show Icelanders warming toward EU membership and, in even greater numbers, backing adoption of the euro.

I think I read something last week about the Danish warming up to the Euro as well.

 

[Anji]

The only way I would put an X on the vote to ditch the £ is is someone forged it for me! As long as I have breath in my body I would never agree to it. You can move on, but never forget

 

[pgv]

I think I read something last week about the Danish warming up to the Euro as well.

I think everyone's warming to the Euro at the moment given the current economic situation. The UK will probably have to beg to join soon!

 

[financeguy]

The only way I would put an X on the vote to ditch the £ is is someone forged it for me! As long as I have breath in my body I would never agree to it. You can move on, but never forget

Anji,

I doubt if the UK will join the euro, for what it's worth.

 

[financeguy]

I think everyone's warming to the Euro at the moment given the current economic situation. The UK will probably have to beg to join soon!

Why?

 

[Anji]

Anji,

I doubt if the UK will join the euro, for what it's worth.

I agree with you! But that said, I don't trust this shady government to get it in by the back door! They know it would not win a vote, so they will just go behind our backs like they did on other things to do with the EU

 

[pgv]

I agree with you! But that said, I don't trust this shady government to get it in by the back door! They know it would not win a vote, so they will just go behind our backs like they did on other things to do with the EU

How come you're really against us joining the Euro? And would they even need to put it to a referendum given that we're part of the EU as it is? It just seems like the natural next step for them to take - first the treaty, then the currency

Why?

Have you not seen how far the Pound has fallen against both the Euro and the Dollar?

 

[financeguy]

Have you not seen how far the Pound has fallen against both the Euro and the Dollar?

To me, that is equally valid, if not more so, as an argument against the UK joining the eurozone.

Look at it this way: by allowing the pound to devalue, British exports become much cheaper, and accordingly more competitive, hence setting the seeds for an economic recovery (and possibly before the rest of Europe).

By contrast, were the UK to join the euro, its freedom to set its own exchange rate is removed and an instrument of economic policy is lost.

 

[financeguy]

I have a real question, and hopefully someone can give a me a nice, simple answer because this stuff isn't in my realm of experience.

If the Euro countries did want to go back to their old currency, how hard would that be, and how would it be achieved?

Please don't answer with a question about my opinions on this stuff; I don't have any.

Seemingly:-

The independence of the ECB is embedded in the Treaties. A unanimous decision by all member states is required to change the Treaty.

FT.com | Willem Buiter’s Maverecon | Confessions of a crass Keynesian

 

[martha]

Seemingly:-

(My understanding of monetary policy is the same as my understanding of the language spoken on Venus.) So, for a single country to restore its old currency, all the signatories to the treaty would have to agree?

FT.com | Willem Buiter’s Maverecon | Confessions of a crass Keynesian

I'll have to try that again later when I can focus.