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GETTING READY FOR THE BRITISH EURO
Since the New Year a kind of collective numismatic amnesia has seized mainland Europe. The old francs and marks and guilders have suddenly and completely disappeared. Nobody pines for them. Everybody manages with the new crisp notes and gleaming coins. My Belgian euros sport the rotund and bespectacled features of King Albert II. When sterling joins the euro, Queen Elizabeth II will star on all coins minted in Britain.
I say 'when' not 'if' Britain joins the eurozone because, whichever way one looks at the matter, inclusion carries less risks than exclusion. Why is this? First, consumers will get a better deal. The euro completes the business of building the worldÕs largest single market. In suppressing currency transaction, the introduction of the euro throughout the European Union removes an unnecessary cost to traders and travellers. One currency makes it easy to compare prices between countries. As Britain is one of the most expensive countries in Europe for a whole range of goods from cars to shoes, including food, British citizens stand to gain most from embracing the euro. Watch the prices of any retailer who opposes the euro. Joining the euro means an end to 'rip-off Britain'.
Next, no more sterling means no more sterling crisis. The history of the pound since the First World War has been one of exceptional volatility. At present, our manufacturing industries suffer badly because of the over-valuation of the pound. Stick with sterling, and get prepared for a sharp fall in the poundÕs value against the dollar or the euro (or both) followed by a sharp hike in UK interest rates, leading to more expensive mortgages. Borrowing is already more costly in Britain than in the rest of Europe. Clinging to sterling will force that gap even wider. Only the euro promises a stable framework for future long-term investment.
Anti-Europeans cling to the myth that Britain is sovereign over her monetary affairs, and that all freedom to shift policy to suit our national conditions will be lost if we enter the euro. The facts are rather different. The Bank of England sets interest rates more to react to international circumstances than to suit domestic conditions. Indeed, as the Governor of the Bank has admitted, there is no coherent 'one size fits all' policy even for the UK: what suits the South East is uncomfortable for the North or Scotland; what suits the retailing sector shafts manufacturing.
So why not join the euro? Out of ignorance, yes; out of sentimentality, certainly. But ask the British people a sensible question in a referendum, argue the case, decorate the pro-euro campaign with the country's more popular politicians and most successful businessmen and women Ñ and look forward confidently to the answer yes.
Andrew Duff lives in Cambridge and is a member of St John's College. He is the Liberal Democrat Member of the European Parliament for the East of England, and is regional convenor of 'Britain in Europe'.
This article first appeared in the 'Cambridge Student' in February 2002
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Andrew's
work
in the European Parliament since 1999
Andrew is Vice-President of the European Parliament delegation to the Constitutional Convention on the Future of Europe.
Andrew drafted the Charter of Fundamental Rights which has strengthened the rights of all the citizens of the European Union.
Andrew is working for improved links between the EU and Turkey, to encourage improvements in Turkey's human rights record and to enhance its democracy.
Andrew's campaigning in the East of England
Andrew has led calls for the Air Travel industry to be subjected to the same rigorous environmental criteria as other modes of transport
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