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Britain Thinking Of Joining Euro

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Yahoo news

http://uk.biz.yahoo.com/30112008/323/brita...ro-barroso.html

Current Euro interest is 3.25 %. Pound is 3.00%.

Is this also mean the disappearing of Bank of England?

Not a bad idea really.

It's been the saving of Ireland to have been in the Euro. While you look at European countries outside the zone who have had a reckless few years: Iceland, Turkey, Hungary, then perhaps it's about time we joined in.

In terms of foreign reserve currencies, The US$ accounts for about 50% and the GBP about 5% - the Euro is in between. It would make sense to join. A nice hedge against the hyperinflation that so many of us are worried about on this site [not me personally].

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Joining officially or unofficially?

The three Baltic countries - Estonia, Latvia and Lithuania - wanted to join officially but could not because of their domestic inflation.

Iceland, as I understand it, is not joining officially - only considering adopting the Euro. (Or Dollar.) Any country can do this.

If Sterling collapses, we could end up with two currencies - like Russia in the nineties.

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Joining officially or unofficially?

The three Baltic countries - Estonia, Latvia and Lithuania - wanted to join officially but could not because of their domestic inflation.

They are joining officially starting from 2010 if it goes according to schedule. Iceland isn't in the EU so it couldn't join officially even if it wanted to.

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They are joining officially starting from 2010 if it goes according to schedule. Iceland isn't in the EU so it couldn't join officially even if it wanted to.

Oh, right. Thanks.

Does membership preclude EU members from adopting the Dollar? Anyone?

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I don't doubt this will happen at some point, but this will raise some interesting points - firstly at what rate do we take the Euro? Ie it's currently something like 1.2 euros to the pound, so would a £3 pint become e3.60, even though its more like e6-7 in France? What would the implications be for savers whose money is in UK£, and those tied to UK inflation measures?

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In an ideal world the main political parties would state the views clearly on wether they wish to join or not. Then have a clear measured reasonable debate about this, then allow the public vote on this issue.

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Oh, right. Thanks.

Does membership preclude EU members from adopting the Dollar? Anyone?

I would think so as accepting eventual membership of the Euro is a condition of joining the EU. The UK, Denmark and Sweden have an effective permanent opt-out.

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They would only allow the public to vote on the issue if they knew they could win it. Then again, if they had a referendum and we voted no, they would employ the usual tactic of asking the same question repeatedly until we said yes. It's like dealing with the mafia, they don't like your answer, they intimidate you a bit more then ask you again. Welcome to the new roman empire.

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You should change the title to 'Jose Manuel Barroso thinks Britain should join the Euro' because thats all the article says. Nobody has suggested it here, have they?

Being able to devalue your currency and decrease interest rates is a decide advantage in a downturn. For instance, look at Spain, they are totally ****ed and there has been discussion of dumping the Euro, in Ireland.

Edited by Peter Hun

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You should change the title to 'Jose Manuel Barroso thinks Britain should join the Euro' because thats all the article says. Nobody has suggested it here, have they?

Being able to devalue your currency and decrease interest rates is a decide advantage in a downturn. For instance, look at Spain, they are totally ****ed and there has been discussion of dumping the Euro, in Ireland.

Well said. Britain is not thinking about joining the euro and membership would have made no difference in this crisis. In fact, Brown would not have been able to embark the current round of borrowing/spending due to the stability rules. Govt. deficits are limited to 3% and Britain will have 8% next year.

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You should change the title to 'Jose Manuel Barroso thinks Britain should join the Euro' because thats all the article says. Nobody has suggested it here, have they?

Being able to devalue your currency and decrease interest rates is a decide advantage in a downturn. For instance, look at Spain, they are totally ****ed and there has been discussion of dumping the Euro, in Ireland.

Well, it's only an advantage until the currency becomes worthless and untradeable. Or non-convertible or whatever.

Iceland's currency is one of its biggest hang-ups at this point in time. Think that was also one of Hungary's biggest problems. Hasn't helped either of them control a downturn as far as I can see.

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They would only allow the public to vote on the issue if they knew they could win it. Then again, if they had a referendum and we voted no, they would employ the usual tactic of asking the same question repeatedly until we said yes. It's like dealing with the mafia, they don't like your answer, they intimidate you a bit more then ask you again. Welcome to the new roman empire.

As far as Barroso is concerned, a referendum would matter little:

"I know that the majority in Britain are still opposed, but there is a period of consideration under way and the people who matter in Britain are currently thinking about it", he said.

The "people that matter" obviously do not include the "majority".

(Barroso quote taken from the BBC News version of the story: http://news.bbc.co.uk/1/hi/business/7757830.stm )

Edited to mention BBC.

Edited by Principia

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Well, it's only an advantage until the currency becomes worthless and untradeable. Or non-convertible or whatever.

Iceland's currency is one of its biggest hang-ups at this point in time. Think that was also one of Hungary's biggest problems. Hasn't helped either of them control a downturn as far as I can see.

There is a limit on how much the Pound can go down, the UK exports a lot far more than the US per Capita for instance. Oil, Jet engines and parts there is a lot that is only made in Britain. The cheap pound also protects UK subsidiaries - when it comes to closing factories which will they close the one in Euro land that cost 50% more per unit than PoundLand?

Comparisons with Iceland are a joke. 10x GDP debt, 40%GDP from banking. Fish and Aluminium as the only real exports (and the Fish industry is 4Billion euro in debt). Hungary is another Carry trade victim (100% of loans in Yen or Sfr). Spain and Switzerland are far worst state than the UK.

The "people that matter" obviously do not include the "majority".

I'm pretty convinced this 'news' is not aimed at the UK but an attempt to reassure the PIGS (Portugal, Italy, Greece and Spain) that they are better in the Euro than out. He obviously has absolutly no idea about British thinking or Politics on the matter.

Edited by Peter Hun

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It will never happen during this crisis, we still have the luxury of debasing our own currency, it offers a lot of flexability in situations like this.

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If we were in the Euro I suspect our insane house price bubble would have been even worse.

I also remember our disastrous membership of the ERM.

There does not appear to be any rational reason to join the Euro.

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They would only allow the public to vote on the issue if they knew they could win it. Then again, if they had a referendum and we voted no, they would employ the usual tactic of asking the same question repeatedly until we said yes. It's like dealing with the mafia, they don't like your answer, they intimidate you a bit more then ask you again. Welcome to the new roman empire.

The romans ought to know better...after nearly 2000 years of trying,they never quite managed to get the celts beaten into submission.

Don't be too harsh on old gordon.

The roman's have tried every trick in the book...bribery,sabotage from within etc etc.

Yes we know about it!!!!!!!...no more sneaky sneaky.

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In an ideal world the main political parties would state the views clearly on wether they wish to join or not. Then have a clear measured reasonable debate about this, then allow the public vote on this issue.

The main parties don't have a view. They both have a family fight. Their strategy is to pretend they have whatever policy you want while not saying it clearly enough to upset anyone who prefers the other option

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If we were in the Euro I suspect our insane house price bubble would have been even worse.

I also remember our disastrous membership of the ERM.

There does not appear to be any rational reason to join the Euro.

I think you are right.....In my opinion Barroso's comments could be a tactic to distract attention from the problems they are having holding the Euro together......What better distraction than to suggest that Britain might actually want to join them.

Edited by mrblobby

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  • 407 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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