Continuing the crunchy theme on here...
So as the pound heads toward parity with the Euro - just what is the future at the moment? Some are saying it's a great excuse or a great moment to join the single currency as policies of the Bank of England and the European Central Bank are coming closer together as we try to ride out the downturn.
So what do you think? Good idea? Bad idea? Are these exceptional circumstances the right time to discuss such an important step for the UK?
Euro trash?
It's fantastic for people in the Republic of Ireland, they're heading north in droves. With shops offering rates of £1=€1 and lower rates of VAT and tax on products in the UK than the RoI, there have been long tailbacks on the roads heading into Northern Ireland.
Newry's traders are doing fantastically well and the Asda store in Enniskillen is the second busiest in the UK. If the number of RoI license plates in the Ikea car park is anything to go by, they're coming into Belfast too.
Newry's traders are doing fantastically well and the Asda store in Enniskillen is the second busiest in the UK. If the number of RoI license plates in the Ikea car park is anything to go by, they're coming into Belfast too.
Personally, I think 10 years down the line, even if we haven't officially joined the Euro, we will be in a dual-currency situation.
With more and more big shops in big cities accepting the Euro as well as Sterling, I think this situation is a probability rather than a possibility.
With more and more big shops in big cities accepting the Euro as well as Sterling, I think this situation is a probability rather than a possibility.
In fact, now is precisely the wrong time to be joining the Euro. During an economic crisis such as this, governments should want to have full policy flexibility. They can't do that if they're forced to accept interest rate decisions from the ECB. Frankly, I have huge misgivings about the Euro because while you've got common monetary policy, you still have totally disparate approaches to national budgets, and hence you're going to have all sorts of conflicting pressures in terms of which way interest rates should go. Germany, France and Spain are all very different economies, yet are forced to adopt the same interest rate because they share a currency. I would have thought you'd need much closer economic synchronisation for such an approach to work effectively for all parties.
Mind you - my understanding is that even if the UK wanted to, its economy is currently in such a parlous state that it wouldn't be allowed entry to the Eurozone. Britain currently fails to meet the requisite standards for adopting the Euro.
Mind you - my understanding is that even if the UK wanted to, its economy is currently in such a parlous state that it wouldn't be allowed entry to the Eurozone. Britain currently fails to meet the requisite standards for adopting the Euro.
