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Journalism

British Business and Euro

Britain in the recent past was a superpower, the colossal empire of the world. At the end of the XIX century, the British pound sterling was the world's strongest currency, claimed to be the sole reserve currency. Although today the UK is no longer a superpower, yielding the largest European countries, for example, such as Germany, in terms of GDP, it does not want to hurry up with the introduction of the euro, for it is expensive maintaining independence, its identity, a certain degree of national ownership. The use of an international currency in the country is a concession of national sovereignty, which is so cherished by the British. Although the euro and may bring some advantages for the country's sovereignty but more importantly for the UK. This is one of the reasons for rejection of the euro.

The second reason - the financial markets. In Europe, they are poorly developed. This can be verified by a simple example. Any reviews of the financial markets about the state begins with the New York stock exchanges, then, is "NASDAQ" Further, Tokyo and London. And only then do they go in Paris, Amsterdam, Frankfurt and others (Arestis et al, 2011, pp. 99).

The volume of financial turnover in the European markets in ten, maybe more, just inferior to London. Therefore, London is one of the largest financial centers in the world. It can be compared, perhaps, the only New York, which he concedes, and Tokyo. In addition, the UK Financial Services bring a fairly large income. It is essential to maintain its status quo, not to disturb their investors, who are already accustomed to the pound sterling. In the case of the euro, the UK could lose its role as recognized by all international financial centers, because he would have assimilated among the other members of the eurozone.

It is also important and a negative attitude to the euro from British bankers. They are given the experience of their counterparts in the euro area, estimated that the entire process of transition to the currency will be very expensive - it cost about 20 billion euros. Costs will be necessary to re-engineering, automated teller machines, electronics, and the transfer of all accounts in euros, and many other procedures are inevitable. In addition, bankers predict that the devaluation of national currency, in case they turn into euros, and at the same time, the inevitable inflation.

An important role in the rejection of the euro played a so-called Brown's five tests, the former finance minister of Great Britain. This five questions about the profitability of the UK joining the euro zone, the European currency, which was obtained only one positive response, that the euro will boost the British financial services sector, to stimulate its development. The remaining four - the compatibility of the business cycle and the structure of the UK economy and the euro area, that there will be enough flexibility for countries to cope with problems that may arise, to create more favorable conditions ...