Economy

Economy

An assessment of UK entry based on five economic tests was published on June 9, 2003 by Gordon Brown when he was Minister of Finance. While maintaining a positive view of the Government on the euro, the report objected to the membership, as four of the five tests have not been adopted. However, the 2003 document also noted the considerable progress in the UK in meeting the five tests since 1997, and the opportunity to make political decisions to adapt to the British economy to better respond to future tests . He cited long-term significant benefits arising from possible membership in the EMU carried out carefully.

Some believe that removing the ability of the United Kingdom to set interest rates would have a negative effect on its economy. One argument is that flexibility is a key currency, and the sharp devaluation of the pound in 2008 was just what Britain to balance its economy. [8] The second objection is that many continental European governments have large pension liabilities. They fear that if Britain adopts the euro, these debts could put the debt of the British taxpayer, [9] Even though others have rejected this argument, because evil. [10]

Some argue that intra-European exports are 60% of total exports of Great Britain, a single currency would strengthen the internal market by reducing the cost of currency exchange for businesses and travelers, and reduce the risk exchange. [11] An interesting parallel can be seen in the 19 century discussions on the possibility of joining the Latin Monetary Union in Britain. [12]

Academic research on the effect of entry into the UK economy has generally been found to have a positive effect. The most obvious impact would probably be a positive effect on trade with other members of the Eurozone. [13] may also have a stabilizing effect on market prices of shares in the UK. [14] A simulation of entry in 1999 revealed that would have a positive effect overall, although weak, long-term effect on GDP of the United Kingdom if the input was done with the exchange rate pound to euro the time. With an exchange rate, the entry would have been more clearly a positive effect on GDP in the UK. [15] A 2009 study on the effect of an entry in the coming years, found that the effect should be positive stability, improving the economy of the United Kingdom [16].

In June 2003, Gordon Brown said that the best solution for the UK to join the euro will be about 73 pence per euro. [17] (On May 26, 2003 reached Euro 72,100, an amount not to exceed December 21, 2007) [18]. the euro has increased by over 80 pence in 2008 and peaked in 97.855p, December 29, 2008 [19] The effects of the global financial crisis in 2008 on the British economy:. failing banks, sets the property values ​​in the UK and the pound sterling on 85.98pi against the euro Nov. 19, 2008, [20] Some British analysts said the euro was far better than of Other possible solutions to economic problems in Britain. [21] On December 29, 2008, the BBC reported that the euro had risen to around 97.7p, due to the worsening economic outlook. This report shows that many analysts believe that parity with the euro was only a matter of time. [22]

During the year 2009. The value of the euro against the pound sterling has fluctuated between January and the second 96.100p 84.255p 22 In June 2010, the value of the euro against the pound sterling has fluctuated between 10 and 29 March 91.140p 81.040p in June On December 31 closed at € 2,010 86.075p. [23] The weakness and volatility of the pound has expressed concern about the costs involved for UK consumers at home [24], [25] and British lives [26] or traveling abroad. [27] On the other hand, a report in the Daily Telegraph said that the euro has led to problems, high in the euro area, without Germany.The Liberal Democrats have expressed interest in having Britain join the euro the long term. [28]