Why doesn't the UK adopt the Euro?

Would you economic analysts please enlighten me to why the UK still grasps on to its proud pound?

Scroll to see replies

I always thought it was because we aren't on the continent and we still want the US to like us.

The again, with Greece/Portugal/Ireland all having financial problems, us joining the Euro will drag us down with them, and the amount of money converting everything to Euros will cost us millions.

Because it's ****.

Because we have a vastly different economy to Germany and other eurozone members, at the moment we can set our own interest rates according to the needs of our economy. If we join the euro we won't be able to.

I'm still in favour of joining though, from a political point of view.

Reply 4

Bruv

Original post by mikeyd85

Because it's ****.

Why did most of Europe decide to change except us though?

Reply 5

Renner

Becasue it makes no ecenomic sence what so ever

Reply 6

turn and fall

We should join the Euro. It is out biggest trading partner and have a fixed exchange rates reduces uncertaintity thus increasing foriegn direct investment and trade.

The main economic reason to not join is we lose our monetary soveiregnty (dunno how to spell that) and cannot control our interest rates and QE.

In the long run it is best to join.

For example - would America be the economic powerhouse it is without a standard currency?

The real reason we do not join is the UK still thinks of itself as a imperial ruler (not some ruffian EU country) :smile:

(edited 13 years ago)

Reply 7

mike_mike

One of the reasons is that by keeping the Pound, UK is a lot less influenced by what happens to other countries in Europe and the UK government and The National Bank of England can control much better what happens in the FOREX market(exchange rates etc).

A less-objective reason is that..the Monarchy and the Pound ''make Britain,<<Britain>>"

Reply 8

.Ali.

This is looking at it from a purely non-economic point of view, but anyway:

The pound is a part of British culture. It's a symbol of our Nation, and of our former empire. It holds a lot of values (not monetary) for a lot of people. Also, I (and many others) dislike the European Union. We're our own country, we're not a 'state of Europe' or whatever, we should have our own currency and our own laws. I don't want any more power being given to Europe.

Economically, we'd all lose loads of money.

Reply 9

Hdizzle

the pound has much more value
:smile:

Reply 10

Amuroray

Original post by turn and fall

All nonsense.

We should join the Euro. It is out biggest trading partner and have a fixed exchange rates reduces uncertaintity thus increasing foriegn direct investment and trade.

The main economic reason to not join is we lose our monetary soveiregnty (dunno how to spell that) and cannot control our interest rates and QE.

In the long run it is best to join.

For example - would America be the economic powerhouse it is without a standard currency?

oh dear

Reply 11

Ocassus

Original post by turn and fall

America is one government... Not multiple..

Reply 12

tieyourmotherdown

Because it's one currency which inevitably means one interest rate (Otherwise you may as well have different currencies) and exchange rate, which is absolute suicide because as soon as you start grouping such vastly different economies under one umbrella it becomes difficult. F.e why on earth should Portugal have the same interest rate as Germany? Their economies are massively different, grow at different rates, and their governments need to alter interest rates at different levels/amounts to increase consumer spending as they please. With the Euro, this clearly isn't possible.

Basically its just not workable. These currency unions work in theory on a much smaller scale, but the Euro has got far too out of hand.

(edited 13 years ago)

Reply 13

Hopple

Even now you ask this? The weaker countries in the Euro are dragging it down, destabilising it. Any effort to stabilise it results in mass riots in the weaker countries, putting more pressure on everyone.

Let Germany fix the Euro, then if and when it is better than the pound, we can join :tongue:

Reply 14

username234673

Original post by Bruv

Why did most of Europe decide to change except us though?

Made it easier for inter-European transactions from what I remember. Probably other reasons on a per country basis too.

Reply 15

Life_peer

Original post by Bruv

Would you economic analysts please enlighten me to why the UK still grasps on to its proud pound?

The pound sterling is far more stable and the future will show this statement to be true. Plus the UK does not have to donate irresponsible countries such as Greece or Spain and participate in the EFSF. Leaving your own currency would make the UK even more influenced by Brussels. Come on, we do not want the USE, do we? :holmes:

(edited 13 years ago)

Reply 16

neutralmilkhotel

We wouldn't be reminded of our monarchy every time we want to buy something, which we all love so much. Poor Queeny.

Reply 17

tieyourmotherdown

Original post by turn and fall

We should join the Euro. It is out biggest trading partner and have a fixed exchange rates reduces uncertaintity thus increasing foriegn direct investment and trade.

Fixed exchange rates don't make foreign investment more likely when your economy is screwed because of the fact you have no control over your own interest rate.

The main economic reason to not join is we lose our monetary soveiregnty (dunno how to spell that) and cannot control our interest rates and QE.

The interest rate argument is very solid and makes perfect sense.

In the long run it is best to join.

No it isn't. If anything in the long run it's not best to join. The one disadvantage of a free market economy is that recessions are cyclical and will occur regularly (unless we find a way to get rid of boom and bust, which Gordon Brown tried but didn't succeed in), so it's inevitable that a recession will happen again in the near future and when it does we need control of our own interest rates.

For example - would America be the economic powerhouse it is without a standard currency?

America is one country. The states of America do not have economic sovereignty in the same way that European countries do. In America the federal government controls economic policy, whereas in Europe the individual states do.

(edited 13 years ago)

Reply 18

Crazy Paving

Because the pound is generally better and joining the Euro will mean we have our interest rates set by the ECB, when it's better to leave it the MPC of the BoE. Don't want to share interest rates with those European countries.