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What is Cameron's policy on the Euro? Watch

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    Does the coalition believe we should enter it?
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    No.

    Cameron is vehemently opposed to joining it and always has been, and Clegg despite previously being pro-Euro, is also against joining. So either way it's not happening anytime soon ... thank god q.f.
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    Cameron's policy on anything?

    I don't know, I just don't know :cry:
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    Never going to happen given that the Euro may not even exist after the next two years of bailing out country after country
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    The Euro has pretty much been off the political agenda in the UK since September 11. It was supposed to be Tony Blair's "legacy project", although if he really wanted to go for it he would have probably had to remove Gordon Brown as Chancellor as Brown was never convinced. In the 2001 election, William Hague basically fought the Tories campaign on the slogan of "last chance to save the pound"

    Once the war in Afghanistan started, Blair found a new priority and whilst he supported it in principle he was never going to devote time to it.

    In the last few years events in the Eurozone have pushed it way off the agenda of the UK joining it, even politicians who were keen in the late 1990s have gone off the idea now. Neither Cameron nor Gordon Brown would have taken the UK in or even put the matter up for debate.

    Problem for the Euro was if it was going to work, it had to be an 'all in' thing, with full political union, a large centralised budget enabling fiscal transfers from state to state. As it was the Europeans tried to get it up and running without having made a credible structure for the Eurozone as an optimal currency zone, so it was IMO doomed from the start.

    As I see it now I agree with those who predict the Euro will break up, although it may limp along for another 5 years or so. I bet no new countries join though! When one country leaves there will be a domino effect and investors will just see it as being a matter of time. The interesting one is if political pressure within Germany ends up making them pull out.
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    Cameron ****ing loves the Euro... If it was not for the restraint of the lib dems we would have joined months ago.
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    Cameron is clearly a fantastic politician. I try to keep up with politics but frankly I still don't have a clue what he stands for.
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      Contrary to what some people have said in this thread, Cameron has been clear on the issue of the euro, he opposes it. But then it would be insane to have any other stance, firstly it goes against the ideology of the Conservative party and secondly there is a massive crisis with the euro at the moment, which means that even lib dems don't support adopting the euro anytime soon, if ever.
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      (Original post by MagicNMedicine)
      Problem for the Euro was if it was going to work, it had to be an 'all in' thing, with full political union, a large centralised budget enabling fiscal transfers from state to state. As it was the Europeans tried to get it up and running without having made a credible structure for the Eurozone as an optimal currency zone, so it was IMO doomed from the start.
      This is the Eurosceptic argument.
      (Original post by CandyFlipper)
      Contrary to what some people have said in this thread, Cameron has been clear on the issue of the euro, he opposes it. But then it would be insane to have any other stance, firstly it goes against the ideology of the Conservative party and secondly there is a massive crisis with the euro at the moment, which means that even lib dems don't support adopting the euro anytime soon, if ever.
      You say that, but when questioned publicly, I have only ever heard the Lib Dems say "not in this parliament" which to me reads as "We love it, but we are in coalition and so cannot do so"
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        (Original post by Teaddict)
        You say that, but when questioned publicly, I have only ever heard the Lib Dems say "not in this parliament" which to me reads as "We love it, but we are in coalition and so cannot do so"
        Well firstly the lib dems will be wiped out at the next general election anyway, not that they were signficiant to start with. Secondly by 2015 it'll be suicidal to advocate joining the euro because this eurozone crisis is far from resolved.
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        (Original post by CandyFlipper)
        Well firstly the lib dems will be wiped out at the next general election anyway, not that they were signficiant to start with. Secondly by 2015 it'll be suicidal to advocate joining the euro because this eurozone crisis is far from resolved.
        What makes you say that they will be wiped out?
        Also, I bet it will still be in their manifesto.
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        (Original post by Teaddict)
        What makes you say that they will be wiped out?
        Also, I bet it will still be in their manifesto.
        Who knows if the Euro will still be a currency at the time of the next election anyway!

        Their manifesto will probably have a vague reference to keeping the door open on Euro membership but guaranteeing a referendum before any decision was taken.

        The question about the Euro IMO comes down to one simple question, is the Eurozone an optimal currency zone? The UK is an optimal currency zone. It wouldn't be any benefit to have different currencies in England, Scotland, Wales and Northern Ireland. All that would do was increase exchange rate uncertainty so a single currency is better. The trade off with that is that when the economies are out of step with each other (which they usually are, in fact in the UK there is basically one economy for London, and a different economy everywhere else), there is free movement of the labour market, and there are fiscal transfers from richer parts to smaller parts.

        So in the UK, if a regional industry declines then the UK government subsidises it through the tax receipts of the richer areas, part of it naturally happens as a result of automatic stabilisers (less people in the declining area are in work, and claiming benefits, so that area's net contribution drops and money flows to it from richer areas in the form of benefit payments). Also people in the declining areas, especially the young, can look for jobs in other areas and it's relatively easy to move across the UK where there's the same language, and the same education system if you have kids to think about etc. The USA is also an optimal currency zone for the same reasons.

        For the Euro to be an optimal currency zone you would need those two things to happen, ie Spain gets rising unemployment....the richer parts (Germany) have to subsidise it through fiscal transfers from German taxpayers. Politically this isn't going to be seen as acceptable, people to an extent don't mind subsidising the worse off in their own country but they aren't keen on paying for foreigners. Also Spanish workers have to be able to look for work in Germany. But in reality that's not as easy because first, not everybody in Spain speaks German, second what if they have kids part way through the Spanish school system, can they put them in a German school and continue the same level that they were at...? It's much harder than going from say Wales to England.

        If you didn't have these problems then the Euro would be able to work, and people would enjoy the benefits of no exchange rate uncertainty within the zone, it would increase the volume of trade as businesses in the UK who place orders to be paid in the future, which are deemed in Euros, would know exactly what they will be paying when the bill comes in, rather than worrying that if they make the order now the pound might drop against the Euro and their bill would be bigger than they expected, so as most people are naturally risk averse, they trade at lower volumes when there is exchange rate uncertainty than when there isn't. So I can see why some people like it and I always favour monetary union where you have an optimal currency zone, but I don't reckon the Euro is an optimal zone and the events of the past few years have made me even more sure of that.

        Gordon Brown effectively used this argument to scupper Blair's plans of taking us in it, he never came out openly and opposed it as a Eurosceptic, in the way that the Tory right attacked Major, Clarke and Hestletine during the last Conservative government. Brown just took the line of sure, lets join the Euro, as soon as certain 'tests' are passed (which would never be passed unless it truly was an optimal currency zone). If the Tories had won in 1997 I don't reckon we would have gone in either, because Major had a similar position on it to Brown, although Hestletine and Clarke were similar to Blair. Major was always fairly keen on Europe but he knew where to draw the line. I reckon in years to come, historians will give Major and Brown big credit for keeping the UK out when other big politicians around them wanted in - Major was the guy who secure the UK's right to opt out in the first place (at Maastrict), Brown was the guy who set unachievable requirements for the UK to join.
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        (Original post by MagicNMedicine)
        Who knows if the Euro will still be a currency at the time of the next election anyway!
        I think it will still exist. So many people have so much riding on it still existing - I wouldn't be surprised if certain members left though.

        Their manifesto will probably have a vague reference to keeping the door open on Euro membership but guaranteeing a referendum before any decision was taken.
        I doubt they'll offer a referendum.


        For the Euro to be an optimal currency zone you would need those two things to happen, ie Spain gets rising unemployment....the richer parts (Germany) have to subsidise it through fiscal transfers from German taxpayers. Politically this isn't going to be seen as acceptable, people to an extent don't mind subsidising the worse off in their own country but they aren't keen on paying for foreigners. Also Spanish workers have to be able to look for work in Germany. But in reality that's not as easy because first, not everybody in Spain speaks German, second what if they have kids part way through the Spanish school system, can they put them in a German school and continue the same level that they were at...? It's much harder than going from say Wales to England.
        There needs to be a more standardised system across the European Union for the monetary countries which requires the relinquishing of sovereignty and powers in many respect. It would be treating the parliaments of each country as devolved institutions not central government.
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        (Original post by Teaddict)
        I doubt they'll offer a referendum.
        Even in their most pro European days the Lib Dems were saying they wouldn't go into the Euro without a referendum. Every party has that policy, it would be electoral suicide otherwise. Which is why I was never that worried about us going into the Euro, even Blair was going to have a referendum, although he would have campaigned aggressively for a yes vote, alongside unlikely allies like Clarke.

        (Original post by Teaddict)
        There needs to be a more standardised system across the European Union for the monetary countries which requires the relinquishing of sovereignty and powers in many respect. It would be treating the parliaments of each country as devolved institutions not central government.
        Yes which is what the more radical pro Europeans on the continent realise hence their push towards more and more political sovereignty. This is also what was behind Mrs Thatcher's "No No No" in the Commons, she knew that the only way of practically working a system of monetary union was to move towards political union. In 1990 the pro-Europeans were trying to get everyone to sign up in principle to the next stage of heading towards monetary union without clearly stating what it was, Thatcher asked some searching questions, got some vague answers, and said well I'm not signing up to anything 'in principle'. Jacques Delors said in a press conference that the European Parliament, Commission and Council of Ministers should be the democratic party, executive and Senate of Europe and Thatcher went mental (those were the three Nos she was referring to).

        By this stage Mrs T had lost touch with her core voters in the UK and gone stubborn over the Poll Tax and she was fighting a losing battle BUT she did have her wits about her in Europe and saw what was looming, she probably didn't deal with the situation in a very diplomatic or constructive manner but at least she wasn't signing us up for stuff we would have struggled to get out of at a later stage.
       
       
       
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