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