EURO ZONE WHAT ARE THE POTENTIAL ADVANTAGES

Why did the UK opt out of joining the Eurozone

Why did the UK opt out of joining the Eurozone

The UK economy is different to the majority of those in Europe. We are an oil producer with a high proportion of service industries and low agricultural base to our economy. Since the late 1990, the UK economy has been converging with that of the EU. Since the creation of the single market the proportion of our trade with Europe has been increasing. To accept some of the obvious benefits of the EU but to fail to accept others which are equally beneficial in the same areas is illogical. Interest rates are falling to European levels thanks in part to the independence of the Bank of England. Long-term interest rates are now similar to those of the EU states. Tight monetary policy in force on European governments through the S&GP has lead to governments living within their means. Once we are in the euro it is unlikely that our economies will fall out of step again as enhanced trade and investment will tie us closer together. Most of the booms and busts over the last thirty years have been due to bad domestic policy and the volatile pound. These will disappear if we are part of the Eurozone. (Arthur I. Cyr 2003 Pp. 979)

Outside factors such as the price of oil will impact on all EU economies. Over the last 30 years there have been several occasions when the UK has been booming and the European economies flagging, and vise versa. Our economy is based on different proportion industrial/ service industries to Europe.

One size fits all Interest rate The European Central Bank will set one interest rate for the whole of the Euro Zone ...