Going into the Euro

[insurance_jon]

Now this is just me thinking out loud, but if we are at some point going to join the euro currency, wouldn't we be best doing it now whilst the poubd is on it's arse and there isn't much difference in the value?

[mybrainhurts]

No..

Anyway..

If we were in the Euro, Gordon's spectacular rescue , via interest rate cuts, would not have been possible..Euro, one rate for all.

Edited by mybrainhurts on Sunday 30th November 22:39

[Sixpackpert]

mybrainhurts said:

No

+1

[sniff diesel]

Shirley we'd have been better off fixing it when the pound was high, €1.60 to the £ in 2002 IIRC

[Chris_w666]

I echo the above sentiments.

[anonymous-user]

Probably not.

You can't sort out inflation (although not likely a problem at the moment) by setting interest rates if you are in the single currency.

I doubt whether they would consider it at the moment.

Edited by anonymous-user on Sunday 30th November 22:39

[Plotloss]

If it reaches £1-€1 they're probably better off converting to sterling

[insurance_jon]

I'm not suggesting we do by the way, I was merely asking if we were to do it when would the best time be? i.e what conditions?

[tinman0]

insurance_jon said:

I'm not suggesting we do by the way, I was merely asking if we were to do it when would the best time be? i.e what conditions?

when hell freezes over?

we did this experiment back in the 90s with the ERM, which in essence is the same thing, and it didn't end well.

[Fittster]

tinman0 said:

insurance_jon said:

I'm not suggesting we do by the way, I was merely asking if we were to do it when would the best time be? i.e what conditions?

when hell freezes over?

we did this experiment back in the 90s with the ERM, which in essence is the same thing, and it didn't end well.

Err, how was staying in a fixed exchange rate band the same as adopting a different currency?

[Gunny Sergeant D]

This thread is hilarious, there is as much chance of us going into the Euro as Cheryl Cole sucking my nob.......Cheryl, if I said please would that make a difference?

[tinman0]

Fittster said:

tinman0 said:

insurance_jon said:

I'm not suggesting we do by the way, I was merely asking if we were to do it when would the best time be? i.e what conditions?

when hell freezes over?

we did this experiment back in the 90s with the ERM, which in essence is the same thing, and it didn't end well.

Err, how was staying in a fixed exchange rate band the same as adopting a different currency?

Because you are fixing the value of goods and commodities at the same price and creating inflexibility in the market. Thats why you can only implement a single currency in countries where they are broadly similar. Prodi in Italy should have heeded that sort of advice before kicking Italy in the groin by going into the euro.

[aspender]

mybrainhurts said:

Euro, one rate for all.

No it isn't

Strike that, yes it it is. You said interest rates, not VAT rates.

Must read before posting.
Must read before posting.

Edited by aspender on Sunday 30th November 23:26

[Fittster]

Gunny Sergeant D said:

This thread is hilarious, there is as much chance of us going into the Euro as Cheryl Cole sucking my nob.......Cheryl, if I said please would that make a difference?

The said the same thing in Iceland a few months ago.

[_James]

tinman0 said:

Fittster said:

tinman0 said:

insurance_jon said:

I'm not suggesting we do by the way, I was merely asking if we were to do it when would the best time be? i.e what conditions?

when hell freezes over?

we did this experiment back in the 90s with the ERM, which in essence is the same thing, and it didn't end well.

Err, how was staying in a fixed exchange rate band the same as adopting a different currency?

Because you are fixing the value of goods and commodities at the same price and creating inflexibility in the market. Thats why you can only implement a single currency in countries where they are broadly similar. Prodi in Italy should have heeded that sort of advice before kicking Italy in the groin by going into the euro.

Yes, but the point Fittster is getting at is that pegging an exchange rate and entering a single currency are two very, very different things.

[scotal]

Gunny Sergeant D said:

This thread is hilarious, there is as much chance of us going into the Euro as Cheryl Cole sucking my nob.......Cheryl, if I said please would that make a difference?

Not according to this bloke.......

http://uk.news.yahoo.com/18/20081130/tuk-barroso-s...

[Simpo Two]

insurance_jon said:

Now this is just me thinking out loud, but if we are at some point going to join the euro currency, wouldn't we be best doing it now whilst the poubd is on it's arse and there isn't much difference in the value?

That's the 'Oh it's inevitable so we'd better do it' self-fulfilling prophecy.

It's down to whether you prefer to drive a car, or be a passenger in a bus.

[collateral]

Fittster said:

Gunny Sergeant D said:

This thread is hilarious, there is as much chance of us going into the Euro as Cheryl Cole sucking my nob.......Cheryl, if I said please would that make a difference?

The said the same thing in Iceland a few months ago.

And did she make with the head?

[Diderot]

Well about the only good thing to come out of the 'credit crunch' is that the bullst about economic sovereignty spouted by UKIP and some of the dinosaurs on the back benches of the Conservative party as an argument against joining the Euro has seemingly ceased. Maybe they have awoken out of their torpor and realised the concept of sovereignty was a wet dream all along.

[Ozzie Osmond]

Diderot said:

Well about the only good thing to come out of the 'credit crunch' is that the bullst about economic sovereignty spouted by UKIP and some of the dinosaurs on the back benches of the Conservative party as an argument against joining the Euro has seemingly ceased. Maybe they have awoken out of their torpor and realised the concept of sovereignty was a wet dream all along.

Fair comment. New Labour based its entire strategy on UK being a major global financial centre. Now that the financial pyramid has collapsed the UK is especially hard hit and sterling with it. The big European countries who would have preferred UK to join the Euro years ago must now be laughing like drains. They have a major global currency and we're in danger of ending up holding Monopoly money.

Would we be better off now if we had joined the Euro? I think the answer is "Yes".

Should we join the Euro now? That's a much tougher question and depends largely on what terms the Euro nations would offer.

At the end of the day it comes down to whether the UK economy on its own is capable of recovering at the same speed as Europe and USA. i.e. will we have a miraculous recovery in a year or so upon the recovery of global finance or are we just a little island in the North Sea with a big population, few useful resources and very little manufacturing industry?

Edited by Ozzie Osmond on Monday 1st December 00:43