Wednesday, 4 February 2009

Should we join the Euro?

If the'll have us, that is. Yes we should. The current rock-bottom value of sterling makes it all the more sensible, since it would mean that the UK would retain the economic advantage that we already have - our exports are cheap and imports will soon be quite expensive, which is a wonderful basis on which to trade providing we learn to stem our inate preference for imported goods.

We should of course have joined the Euro from day one. Yet again we find ourselves outside a club that one day or another we'll end up joining, almost certainly on considerably less favourable terms given the delay. We'd certainly have been hit less hard by the current recession if we'd been in already.

Politicians from both the major parties have claimed that our economic cycle doesn't coincide with that of Europe, and that is why they are opposed to us joining the Eurozone. Now we can see how wrong they were; never has it been more obvious that our economies coincide with a vengeance.

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