Let's go Euro! (Money that is)

Ok, so if you're a Sun reader (or Mirror, Mail, Times or Express even!) then your first reaction is probably going to be "Oh no, not another loony Europhobe!". Perhaps you're right, perhaps not, but from my viewpoint you've just been brainwashed by those who have the most to loose from our participation in the Single European Currency.

Many of us will remember Black Wednesday. That day back in 1992 where various events forced the UK to pull out of the ERM (Exchange Rate Mechanism) which was used to peg our currency to within close range of other European currencies... a sort of "pre-Euro". Even now a lot of people say that fateful day is a good example of why we should keep the pound and let the rest of Europe go it's own way. Well, that was then and this is now; there is a big difference between the ERM and the Euro and the latter of these seems to be quite strong and is proving itself a success. So much so that Britain can only suffer while we cling to our "little islander" mentallity.

Lets take a look first at the benefits that we could all get from using the Euro in the UK... well for a start we wouldn't loose money in commission and exchange rate fluctuations whenever we go for a "booze cruize" or take a trip to the Costa del Sol or Disneyland. We could buy goods on-line from our European neighbours without having to worry about our banks slapping on a £1.50 charge for each "foriegn" transaction (yes folks, Lloyds Bank do this and I have the bank statements to prove it!). We could more easilly compare prices across borders, very useful for those in Northern Ireland who want to nip across the border to fill up their cars on the cheap. The same benefit would apply to those outside the UK who want to visit our great country; they would have more money to spend on tourism. Irish truck drivers passing through on their way to France would be more likely to stop for lunch if they knew they wouldn't have to swap their € for £. More foreign businesses would set up shop here knowing that they would be less susceptable to exchange rate fluctuations.

So, what is the problem? Why are we told the Euro is so bad? It's simple... too many people with vested interests.

First of all we're told that we would loose the ability to set interest rates that suit our economy. Ok, so one size doesn't fit all, but the problems setting an interest rate that suits Portugal as well as Germany is no different to setting an interest rate in London which suits Belfast or Edinburgh! As it was on day 1 of the Euro, interest rates in the Eurozone are still lower than they are here in the UK.

Next we're told that it would be a step towards losing soveriegnty. What a load of rubbish... the UK isn't a democracy any more than I'm the world figure skating champion so what difference would it actually make to us as a nation? So the Queen's head wouldn't be printed on our bank-notes, but then it wasn't before 197o anyway and still isn't on banknotes printed in Scotland and Northern Ireland! Oh, and that brings up an interesting point - how many of you have handed over a Scottish or Irish tenner and been told "Sorry, I can't accept this"? Irish and Scottish notes aren't legal tender anywhere else in the UK and thanks to a strange legal quirk only coins are actually legal tender in Scotland! Well, what's the point of having a "single currency" in the UK when you can't use it half the time. At least if you've got a pocket full of Euros you know that the same notes and coins you got from a cash machine in Athens will work just as well in the pub in Dublin!

Let's look for a moment at the people who don't want us to switch to the Euro.

The newspapers are the ones most vocal about this issue. Particularly the ones owned and operated by a certain Mr Murdoch. An Australian by birth and now a citizen of the USA. So, why is his organisation so dead set against our use of this currency?

Then there are the likes of the UK Independance Party and certain large factions in the Conservative Party. Funny thing is that the people generally most vocal are those who are either not short of a few quid or stand to lose power if the Pound is scrapped.

Many of the more vocal people most likely have ties to the banks and businesses and perhaps have money invested in Jersey, Gurnsey or the Isle of Man. Well, it's quite easy to see why the banks would lose out... just think of all the money lost in commission if we were to convert. Many businesses would probably gain in the longer term, but in the short term losses (forgetting conversion costs) would probably be quite large as many UK consumers would find it easier to see price differences between goods sold here in the UK and the rest of Europe and would vote with their feet. Longer term benefits would be seen however as businesses started to realise the benefits of having zero exchange rate fluctuations and zero bank charges for conversion.

I mention here the Channel Islands and the Isle of Man quite intentionally. As with other UK dependencies such as Gibraltar and the Falkland Islands, these territories have their own currency, pegged at parity with the UK pound. However unlike their French equivalents which have the same status as any other region of France, they aren't members of the EU and as such would not automatically qualify to use the Euro as their main currency. These principalities would have two choices - either continue to use their own currencies but float them freely on international exchange markets with the obvious problem that they then become the target of currency speculators, or formally apply to use the Euro. In the latter case however these islands would lose their status as tax havens because of strict EU monetary policy, and the politicians, bankers and businessmen who keep their money on these islands would lose out big time.

So, finally we start to see what is stopping us from benifiting from the use of the Euro in the UK. Oh, and just a final point - I'm most certainly not a socialist and so I have no anti-business motives in what I write here. I am a strong supporter of free enterprise, but it has to be just that, free. Every business should be able to operate on a level playing field and if that means killing the tax haven then so be it. Those of us who work hard and pay our taxes should be able to use the rest of our money for our benefit, not for the benefit of the few who clearly strive to deprive us of OUR soveriegnty in the name of the Pound Sterling and all it stands for.