by Titanic on Mon Feb 19, 2007 10:39 am
France, and especially under Napoleans time, brought the metric system to Europe. They even created a 400 degrees circle, which no one uses, radians and degrees are too popular and easy.
I think we should join the Euro, but not yet. We need to wait for our housing market to cool down, and until we are ready. I think the introduction of the Euro would have a negative effect on us and the Eurozone if introduced within the next 3 years. Gordon Browns 5 economic tests are a good way or measuring whether we are ready, and the main area we failed on was market flexibility. Within a few years, as Europe becomes more integrated and we can respond easier to changes in French/German/Eu markets then a simple transision from sterling to Euro will be smooth and comfortable.
Eventually we are going to have to join, as France and Germany have too much power in the Eurozone, and we will lose out economically as more and more foreign companies choose the Eurozone over us as its easier for them too, especially with the new manufacturing areas in Eastern Europe. One of the major things which actually keeps us competitve is the City, and the fact that a lot of Europes finances come through us.
The Eurozone as a whole is predicted 2.6% growth this year, whilst Browns prediction for UK is 2.8% although it might easily got over 3%. France and Germany really had a bad patch recently where they pretty much had stagnation, just like Japan, but France and Germany in the past year have grown much quicker. I think the next decade will be the deciding test for the Euro, and I believe we should join around abouts 2011.
Unfortunately we need the Treasuries approval, a national refurrendum, a vote in the Commons, and a vote in the Lords (dunno is the 3x commons law can overrule them in this), and obviously the Queens signature (which she will give anyway). Once the 5 economic tests have passed, the treasury will approve. I think if the treasury approve, then the commons are much more likely to pass it through, but this depends on how many seats Labour and Lib Dems have after the 2009 election.
Getting a pass at the national election will be difficult, but we've gotta wait for positive votes from the Eurozone, and backing of more papers. The Sun, the mail, the express are all anti-euro, which dusn help seeing the sun and mail are our two largest daily tabloids. Hopefully the House of Lords will pass it, but with the hereditary seats being removed and some elected lords coming in in the Lords "reshuffle", then it might be easier.
