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Abandoning the pound is in the best interest of all of Britain
Larry Mallari Tom Brinkerhoff Tom Schemkes
Pro-Euro Politicians
Polls suggest a slight majority of Swedes and Danes favor the Euro
If the EU enlarges to the east, Britain alone could be left as the only member remaining outside the currency union
Britain would have more influence in the EU if they joined the common currency
Benefits of a common currency
Reduced transaction costs Reduced uncertainty risk
Create long-term capital flows Extinguish hot monies
Synergy between member nations
Prime Minister Blair’s Comments
During the election campaign, he wanted Britain to join the Euro
“Save the Pound” politicians slogans have backfired in the opinion surveys
Put Euro membership to a referendum providing that the five self imposed economic tests are met
Five Economic Tests
Is there enough flexibility in the economy to deal with problems
Would entry encourage firms to make long-term investments in Britain
Would entry damage the City’s financial services industry
Promote growth, stability and jobs Is the UK business cycle compatible with the
eurozone
Opinions
Recent opinion surveys in the U.K., Sweden, and Denmark show a distinct warming toward the Euro
Bank of England Governor Sir Edward George called the single currency a “fantastic success” and said the introduction of euro notes and coins this year has been an “absolute triumph”
Conclusion
Polls seem to suggest that Britain will join the euro eventually
It will reduce transaction costs because of reduced exchange rate fluctuations which will increase economic growth
Joining the euro should lead to more investments, more jobs, and lower interest rates through fiscal responsibility demanded
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