Arguments For And Against The UK Joining The European Single Currency

The beneficial effects on the economy may take as much as two years to be fully felt. I Further, the UK should be careful not to rely on a weak currency in order to support its competitiveness. An Exchange rates tend to fluctuate in value over time and the strongest economies are usually those with high productivity and low production costs, or those which produce highly innovative products. The long term performance of the UK economy could be adversely affected if a weakening of the currency was allowed to distract from these more fundamental determinants of economic performance. An Overall, however, in the current context, a weakening of Sterling is likely to be seen as beneficial for the UK economy, helping to support it through a difficult time and aiding a rebalancing of the economy towards the export sector. Despite this, it should be remembered that in other contexts, for example when controlling inflation is a more pressing problem, a fall in the exchange rate could be damaging.

The Euro and its Impact on the U.S. Economy The euro is the official currency of the following 12 European nations: Belgium, Germany, Greece, Spain, France, Luxembourg, Ireland, Italy, The Netherlands, Austria, Portugal, and Finland. Although it has been the official currency since January 1,1999 it became physical tender which can be used by all participating countries on January 1,2002. The introduction of the euro into the world was truly a historic event; it represented a unity never before seen in the history of Europe, a common currency. After years of negotiations and much skepticism from around the globe, the implementation of the euro is no longer an abstract ideal, but a change that nations, corporations, and investors must

As of 2012, only seventeen of members of the European Union have decided to use Euros as their currency. In order for the members that adopted the Euro as their currency to successfully help their economic problems, the Eurozone members had to follow strict instructions put into place the European Union. The strict policies included strict control over inflation, government debt, and long-term interest rates (Mckee 525). The union put these strict policies into place to give the union the tools that it needed to take in order to help fix the economic crisis in each country participating in the Eurozone. Without the full cooperation of each country, it could cause the plans to fix the economic crisis within each country to fail because of the different interests by each individual country.

The euro is not the currency of all EU Member States. Two countries (Denmark and the United Kingdom) have ‘opt-out’ sections in the Treaty excusing them from involvement, while the rest (numerous of the more recently agreed EU members plus Sweden) have yet to meet the situations for approving the single currency.

It is my opinion that without the federal government, there would not only be chaos across the board in the private sector, but also in every citizens personal and professional life. With no federal government to back our currency, what would it be worth? How would we exchange the old currency for the new, and who would set the exchange rate? There would be no federal taxes, no regulations on trade – at the interstate and international levels. Who would step in to help resolve matters that involve a transfer across state or country lines? There would also be no federal income tax deducted from our paychecks. While this perhaps seems beneficial, consider this against the certainty that Social Security and Medicare would be over. This would not

The EU sought to simplify trade within European neighbors and to replace national currencies with a single shared currency that could compete with the dollar on the global stage. The members of the newly-formed European Union agreed to a fixed currency conversion rate when the Euro was adopted (Scheller). Initially, the EU only had 11 members, but membership has since grown to 25 member nations. These 25 member countries operate within what is called the Eurozone, over which the European Central Bank sets economic policy

Whether the United Kingdom decides to join the European single currency and replace the pound with the euro will have profound economic as well as political effects on the country so is a very important decision and has considerable variations in attitudes towards the topic, although the British public opinion has consistently opposed joining the euro. The euro is currency shared by 18 of the European Union's Member States. The euro was introduced in 1999 and automatically became the new official currency of 11 States, followed by another 7 countries joining to date. However, the UK negotiated an opt-out to from the Treaty meaning they don’t have to adopt the common currency as they fit a certain criteria [1]. Joining the European single currency can have major advantages for the UK, such as diminished uncertainty of exchange rate for businesses and the decreased need to pay transaction costs of changing currencies when abroad. It can also have disadvantages such as loss of domestic monetary policy and variable rate debt in the UK.

The EU has its own currency called the euro which 19 of the 28 European states use. It is run by members of the European parliament, these members set rules that cover a wide range of areas such as rules on transport and business. Once a state becomes a member of the European Union they have a right to withdraw from the Union under the Treaty on the European Union. Article 50 in the Treaty on European Union states, “Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements." If the United Kingdom votes to leave the Union, they would be the first state to ever withdraw their membership.

This report will look at the benefits and issues surrounding the UKs decision to remain as a member state of the European Union (E.U.). Along with the newly elected conservative government, came the announcement that a nationwide referendum would be held, by the end of 2017, in order to determine the British public’s stance on the issue of EU membership.

What kind of harm will Britain pulling out of the European Union cause to the equilibrium, even with them taking precautions?

The euro is the currency that is used by these European Union countries: Belgium, Greece, Cyprus, Spain, Germany, Italy, Ireland, Malta, Austria, Luxembourg, Finland, Portugal, the Netherlands, Slovenia, and France.

Therefore, in conclusion, having weighed up both sides of the arguments of both staying as part of the EU and to leave the EU, I would be in favour of Britain remaining within the European Union. When looking at the benefits for each side, the UK would benefit most in terms of employment, immigration, taxes, trade, and economically by remaining as part of the EU. As discussed earlier, the EU is the UK’s biggest trading partner and the largest single consumer market in the world, leaving it would certainly involve a level of risk. However, although withdrawal from the European Union could cause some disruption to the economy, it is most unlikely that export sales to EU markets would cease completely, and monetary policy can be relaxed, and over time flexible wages and prices would help to recover employment rates.

1. On January 4, 1999, eleven member states of the European Union initiated the European Monetary Union (EMU) and established a single currency, the euro, which replaced

For example, every country has different currency and different legislation. They follow different set of rules and the value of currency differs from one country to another. According to EU’s rule and regulations member states don’t pay extra tax because they are a part of single access market. But for example another country outside of EU needs to pay tax and there is cost involved when the products or goods cross borders. Since Norway, Iceland and Lichtenstein are not European Union’s member states they pay higher tax to enter in European Union area moreover they are entitled to follow their rules and regulation and their own tariffs. If UK decides to not to be a part of EEA or single access market they will be subject to trade barriers. As a result Britain will loss vast amount of profit which they made when they were part of EU.

In 1999 seventeen countries in the European Union adopted the Euro forming a Euro Area. With the adoption of the Euro these seventeen countries discontinued their old currencies and monetary policies. Monetary Policies