UK Delays Euro Decision - Gordon Brown Falters

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Discussion Overview

The discussion revolves around the implications of the UK potentially joining the Euro, focusing on economic, political, and cultural considerations. Participants explore the motivations behind the EU's formation, the impact of currency changes on national identity, and the economic consequences of joining the Euro versus maintaining the British Pound.

Discussion Character

  • Debate/contested
  • Conceptual clarification
  • Technical explanation

Main Points Raised

  • Some participants argue that the flexibility of setting one's own interest rates is more beneficial than the risks associated with fluctuating currency markets.
  • Others suggest that the EU serves as an economic alliance aimed at challenging US economic supremacy, questioning the necessity for the UK to join.
  • Concerns are raised about the political implications of a united Europe potentially leading to collusion against the US.
  • Some participants express pride in maintaining the British Pound as part of the UK's cultural identity, arguing against changing to the Euro.
  • There are claims that many Germans regret joining the Euro, citing economic difficulties and rising prices as significant issues.
  • A later reply questions the assertion that the Euro is stronger than the Dollar, suggesting that the EU economy as a whole is larger than the US economy, not Germany's alone.
  • Some participants express ambivalence towards joining the Euro, indicating that economic conditions should dictate the decision, and emphasize the importance of a public referendum.
  • Concerns are raised about public apathy towards the issue, suggesting that a lack of engagement could render a referendum irrelevant.

Areas of Agreement / Disagreement

Participants express a range of views, with no clear consensus on whether the UK should join the Euro. Disagreements exist regarding the perceived benefits and drawbacks of joining, as well as the opinions of German citizens on their own currency change.

Contextual Notes

Participants reference various economic conditions and cultural sentiments, but there are unresolved assumptions regarding the impact of joining the Euro on the UK economy and the validity of claims about public opinion in Germany.

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http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1054965885855&p=1012571727085

Gordon Brown once again delays the decision whether to join the Euro and falters over decisions to allow a referendum on the subject.

For me, the flexibility allowed by being able to set one's own interest rates more than compensates for the risk to outside investors of fluctuating currency markets. Germany says it all.
 
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I tend to think the EU is an economic alliance designed to directly challenge the economic supremacy of the US. Since the UK is a strong economic power unto itself and is a strong ally of the US, there is no compelling reason for them to join. Germany was in the same position and made a big mistake in joining.
 
^Couldn't agree more Russ.
 
Yes, an allied Europe would be another superpower to compete with the USA. Countries like UK, Poland and Scandanavia have political viewpoints more similar to the USA, and if these countries/regions become more involved i.e. by joining Euro, then more collusion with the USA could occur. Without UK in Euro, Chirac/Schroder could be in a better position to manipulate.

London is still the largest financial services centre in Europe, employing 700,000 in contrast to Berlin's 75, 000. The Euro is very much a political tool, however there are many implications in Economics with joining, and I would be not pleased to see it being treat as such.
 
I hope not. The UK is good as an individual and I am glad at least one major country in Europe kept its traditional currency. I know the nations in Europ are not as large as the United States and travel can be common, but it is not hard to find a place to exchange money in Europe. I do not think they should have changed their traditional currency just for one or two reasons I feel as though it was part of their culture and that they changed it after very many years and that those few reasons were not enough. If the people in the other countries wanted it, I suppose it is up to them. But I hope Britain does not change their currency.
 
Originally posted by Shadow
but it is not hard to find a place to exchange money in Europe.
When I traveled to a handful of different countries I got currency from the nearest ATM and payed for as much as possible with plastic.
 
Originally posted by russ_watters
I tend to think the EU is an economic alliance designed to directly challenge the economic supremacy of the US. Since the UK is a strong economic power unto itself and is a strong ally of the US, there is no compelling reason for them to join. Germany was in the same position and made a big mistake in joining.

What do you mean you tend to think? That was openly their plan from the beginning, and since the euro is now stronger than the dollar, I say their plan is working.

Germany doesn't consider it a mistake to have joined. Hell, it's the first time since WWI that their economy is stronger than ours. Since the euro is stronger than the dollar, it will only be more difficult for GB to join the longer they stall.

eNtRopY
 
Originally posted by eNtRopY
What do you mean you tend to think? That was openly their plan from the beginning, and since the euro is now stronger than the dollar, I say their plan is working.

Germany doesn't consider it a mistake to have joined. Hell, it's the first time since WWI that their economy is stronger than ours. Since the euro is stronger than the dollar, it will only be more difficult for GB to join the longer they stall.

eNtRopY
"I tend to think" means "I haven't read up a lot on what the experts say." And from what I HAVE read, many Germans consider it a mistake that they joined. Bad EU economic policy is keeping the German economy from coming out of bad recession.

And the German economy is bigger than the US economy? You mean the EU economy is bigger than the US economy. Not the same thing.
 
Oceania, Eurasia, Asia.

Need I say more?
 
  • #10
Since the UK is a strong economic power unto itself and is a strong ally of the US, there is no compelling reason for them to join. Germany was in the same position and made a big mistake in joining.

Yea completely agree with you on that russ, but i fail to see why entropy says that the germans consider it to have been a good idea to use the euro, i have a friend who lives in germany(she is also a german national) and she says that she doesn't like it and that the german people don't like the euro, prices of everyday items in germany have increased and as has already been pointed out they are still in recession.
 
  • #11
Originally posted by Ganshauk
Oceania, Eurasia, Asia.

Need I say more?
Erm... In Orwell's future would, the UK was part of oceania, in a grouping with the US, and was at war with Eurasia. Mind if I quietly act confused?

Yea completely agree with you on that russ, but i fail to see why entropy says that the germans consider it to have been a good idea to use the euro, i have a friend who lives in germany(she is also a german national) and she says that she doesn't like it and that the german people don't like the euro, prices of everyday items in germany have increased and as has already been pointed out they are still in recession.
Yep. The statistics show that the Germans want their DMs back, and that at present joining the Euro would be a Very Bad Idea economically due to lack of convergence, though the majority of UK trade is still with Europe. I personally am ambivalent. If the economics are right, then I would be glad to join. But there should be a referendum, and the effort should be to persuade the public than force the people into it.
 
  • #12
i'm just worried that over time the public will swallow what its told through endless spin and end up not caring either way so a referendum will be irrevelant