Topic: Should a remaining UK join the Eurozone?

[Linudden]

Given the split is roughly 80/20 or 85/15 for remaining in the union itself, I'm curious regarding what the RAWK consensus on being part of the Eurozone is? In Denmark and Sweden, a large part of people favouring EU membership oppose joining the single currency after all.

For example, Sweden voted against adopting the Euro in 2003 and currently about 70 % oppose while 20 % support switching to it from the krona, even though about 60 % support general EU membership.

So, I'm genuinely curious to see what people's opinions on this is, given Britain has had its pound since forever. Rather simple question then: join or not?

 

[TepidT2O]

No.

The problem with a single currency is that you have to have tax and interest rules that are consistent.

This means that some areas will be crippled by conditions which may suit the rest of the countries.

And unless your population is prepared to up and leave it will cause local hardship.

Given different countries and languages that’s difficult and not necessarily helpful.

[Skeeve]

The UK is a big enough economy that the euro would actually work well for them, but even if they did remain there is no chance of it happening as it would only ignite the fury of little englanders even more than having brexit snatched away from them would.

[Elmo!]

The UK is a big enough economy that the euro would actually work well for them, but even if they did remain there is no chance of it happening as it would only ignite the fury of little englanders even more than having brexit snatched away from them would.

For this reaso alone I voted Yes. 

[Linudden]

No.

The problem with a single currency is that you have to have tax and interest rules that are consistent.

This means that some areas will be crippled by conditions which may suit the rest of the countries.

And unless your population is prepared to up and leave it will cause local hardship.

Given different countries and languages that’s difficult and not necessarily helpful.

Exactly why I'd vote against it for my country 110 %. Countries need to be able to set their own interest rates to be able to properly function. Unless a country is at the top of the pile and the richest of the bunch, the rates would always be adapted to the one that is, thus artificially increasing prices for the rest, causing companies to go under. The end result is what the mediterranean is today.

Also with modern-day credit card payments, the cards can automatically shift currencies depending on which country the receiving business is in, just like online payments work. The Euro seems more adapted to pre-credit card haydays rather than actual reality. With cash on the way out, a single currency across borders feels obsolete already.

[Gnurglan]

You are lucky you were never in it. So are we.

The Euro zone is in big trouble if you believe financial people. Reason being the setup of the Euro was designed the wrong way. It was always going to fail. Then you have the mastermind idea to blame countries who can balance the budget (Holland, Germany). That's what the new head of the ECB did recently.

[Red-Soldier]

Nice idea, but not practical

[killer-heels]

I would accept it if it were a condition of rejoining the EU.

[Gnurglan]

I would accept it if it were a condition of rejoining the EU.

I would like you to come back, but I'd want you to keep the pound. It could be too much of a punishment to go to the euro and besides, most countries would want you to remain.

[Shankly998]

No it would be a bad idea.
We already have a stable currency and what you'd save in transactional costs isn't worth losing control of your monetary policy over which would look to benefit the Eurozone as a whole rather than the UK.

It works if you're in lockstop with the economic cycle of the rest of the Eurozone if not you're screwed.

[killer-heels]

I would like you to come back, but I'd want you to keep the pound. It could be too much of a punishment to go to the euro and besides, most countries would want you to remain.

Maybe, but the EU may not see it that way. If thats the case and if that is the condition, then I am taking it.

[Elmo!]

Maybe, but the EU may not see it that way. If thats the case and if that is the condition, then I am taking it.

No country can be forced to join the Euro. You have to commit to join it at some point in the future but there are several steps a country must take first which are entirely voluntary so any country can delay it indefinitely.

[killer-heels]

No country can be forced to join the Euro. You have to commit to join it at some point in the future but there are several steps a country must take first which are entirely voluntary so any country can delay it indefinitely.

Yes the EU wouldn't be forcing us in that sense as re-joining the EU would be completely voluntary. We would have the choice of such conditions.

[Elmo!]

Yes the EU wouldn't be forcing us in that sense as re-joining the EU would be completely voluntary. We would have the choice of such conditions.

No even if we were rejoinging they can't force us to use the Euro.

[killer-heels]

No even if we were rejoinging they can't force us to use the Euro.

But could they make that a condition of re-joining the EU at the ouset?

[Elmo!]

But could they make that a condition of re-joining the EU at the ouset?

Nope. Any new member has to commit to joinging at some point, but part of the criteria of joining the Euro is being part of the Exchange Rate Mechanism for 2 years, and joining that is entirely voluntary so any country can in effect delay indefinitely, much like Sweden and all the other countries in the EU that aren't in the Euro do (apart from Denmark and the UK which have specific opt outs, at least for now in the UKs case)

[killer-heels]

Nope. Any new member has to commit to joinging at some point, but part of the criteria of joining the Euro is being part of the Exchange Rate Mechanism for 2 years, and joining that is entirely voluntary so any country can in effect delay indefinitely, much like Sweden and all the other countries in the EU that aren't in the Euro do (apart from Denmark and the UK which have specific opt outs, at least for now in the UKs case)

Result.

[west_london_red]

The Eurozone economies are already too disparate for a single currency I would say, monetary policy will either be sub-optimal or be determined by the strongest at the expense of the weakest which is probably where we are now.