11297 Most In Britain Oppose Euro Introduction.

[quote=Sally Donaldson;106828]Apparently most Britons would oppose the introduction of the euro here according to a BBC Poll.

A BBC poll has found that 71% of people would vote against Britain joining the euro if it were put to a referendum.

More - [url=http://news.bbc.co.uk/1/hi/uk/7806936.stm]BBC NEWS | UK | Most Britons 'still oppose euro'[/url][/quote]

Yes but will they ever be asked. Hope not if that poll is correct.

I think that UKIP pose some interesting questions.

I'm ashamed to admit I don't know the first thing about economics so could someone perhaps explain what impact it would have for those of us living here if Britain ever did adopt the Euro?

Well put simply, your income and expenditure would be in euros. So you have stability, and don’t have to worry about currency fluctuations.
Attilio

Also you would no longer have to pay the banks or currency brokers a premium for changing your money from Sterling to Euro.

But then the base interest rates would be set by the ECB instead of the Bank of England. Which means that you would have to share the same interest rate as Germany, France, Italy, Spain, Greece etc. As things stand at the moment each of these countries could do with having slightly different interest rates depending on their individual economic situations. Because of the Euro they all have to share the same 'compromised' interest rate...

I'm not saying the UK economy is the envy of the world at the moment, by any means, but at least we have the freedom do do something to fix it. If we were in the Eurozone we would have to thrash out a deal with every other Eurozone country before attempting any corrective actions.

Most of my friends back in Liverpool don't want the Euro at all, they're very happy with the Giro !!!!

HO Ho!!

Of course, the real reason for lack of enthusiasm among the UK public for adopting the Euro is emotional, not economic at all. There's a romantic attachment to the ancient currency system that we've had through thick and thin, since time immemorial (i.e. 1971).

For myself, I don't care much whether the interest rate is set by a bunch of bankers in London or in Frankfurt, but I think that independence from political interference is a good idea. M Sarkozy disagrees, and it turns out that the Lisbon Treaty doesn't guarantee it.

[quote=Violetta;106883]I'm ashamed to admit I don't know the first thing about economics so could someone perhaps explain what impact it would have for those of us living here if Britain ever did adopt the Euro?[/quote]

In fact you're quite right, i believe as do many in continental Europe,that the ONLY hope from an otherwise inexorabile and total decline in importance on not only economic front but also cutural,social is that in some future moment the single tiny european states finally come together in one single federated union (not necessarily on the same model as the U.S.A.) but similar in essence or as final result.
We have this dream as did the father founders of the original union not to be limited ,as perceived in the uk, merely to some economic club, but as a great federation of the countries,cultures,languages that compose Europe.MINOR aspects like the Euro are just parts of this grand design and in the long term prove to be the only way we can remain at the "top of the world"otherwise our destiny is marked to risk even our future existance.
In front of these prospects i'm always amazed at the total absence of this "dream" in the UK, the royal family,the pound,the bank of england ,the isolationism of britain all seems so trivial in comparison.
In that context,presumably the whole of the continent would have a unified monetary system ,interest rates and probably in the long term a similar or identical fiscal system..
it's a fascinating scenario for the old continent.Yes,i have finished so you may throw your british rocks..now!

I believe that the UK will have to (reluctantly) forget about the pound and get into the euro system. And it would be much easier for all of you to do it now when there is a parity between the two currencies. You will not have to go through the nightmare we went in the Continent and it would possibly affect less the prices. Possibly they will stay the way they are. So it would be a more gentle transition.

[quote=Sprostoni;107062]Most of my friends back in Liverpool don't want the Euro at all, they're very happy with the Giro !!!!

HO Ho!![/quote]

Harsh ... but fair.

[quote=Gala Placidia;107279]I believe that the UK will have to (reluctantly) forget about the pound and get into the euro system. And it would be much easier for all of you to do it now when there is a parity between the two currencies. You will not have to go through the nightmare we went in the Continent and it would possibly affect less the prices. Possibly they will stay the way they are. So it would be a more gentle transition.[/quote]

This will not happen for at least 10 years, but probably not for a generation. The reason I say 10 years is simple: it is likely that the Conservative party will win the next general election in the UK and they are, in the main, ideologically opposed to the Euro. Furthermore, no opinion poll has ever shown that a majority of the people are for the Euro. This is one reason why the Labour party does not have a referendum on the Euro - it is predominantly pro-Euro and would be seen to have 'lost' on this issue.

I used to work with a Maltese colleague on EU projects. I am rather Euro-sceptic (I mean sceptical of the Federal idea) and she is very Pro. I asked her why the EU does not do something about tackling the image of Europe in the UK. She said that the EU has info shops dotted around the UK but it is considered to be quite a hostile place for pro-European information and education.

Joining the euro couldnt come soon enough for those of us living here, who have seen savings and pensions dwindle over the last few months. Talking to a friend in England this morning she said she was pro euro, and wish she had been asked for her opinion.I wonder sometimes how these polls work and what their target groups are.I guess many may be commisioned and are by phone, but it seems very random, perhaps to skewer the results, dont knows and dont cares should be treated as a yes vote!
A

Perhaps it would be illuminating to ask a Greek what he thinks of the consequences of the Euro and his country's relationship to it. A project such as the Euro can only be really successful when the economies of all participants are "converged" before they sign up. A false convergence, as was seen at the start of the Euro, which was done to massage the egos of those politicians who were running the project will only lead to an enormous amount of pain of the sort we are now seeing in Greece. I am reminded of the old saying " More haste, less speed".

In the first five days of this year, the pound has gained about 7% against the euro.
The european bank is likely to reduce its base rate this week in response to reported reduction in inflation to less than 2%.
The likely reduction in the UK bank rate will already be factored into the exchange rate, and my prediction is that the pound will continue to gain.
The FTSE has risen 8% in the last five trading days, and this is likely to strengthen the exchange rate.

I believe the apparent strength of both the the dollar and the euro to be spurious.
The strains in the different euro based economies will continue to worsen, and effect its value.

But then again, I could be wrong........

My theory is that on 21st January we will see the beginnings of a slow improvement in the world recession... '[I]That man[/I]' [IMG]http://crowdify.com/uploads/images/subject/tb/barack_obama.jpg[/IMG] has brought a lot of hope where before there was none. OK - he's not a miracle worker - but many believe he [I][U]will[/U][/I] slowly put the balance right. I hope so - and I'm not even an American...

I think that the €/£/$ exchange rates will begin to show a slow but sustained improvement from the day before and then after 'inauguration' and the stock markets will follow suit.

But that's only my €0.02cent worth!!!

I think that Obama will try to keep a lower rate of exchange for the US dollar against the euro because this will favour his economic plans. Roosevelt took that approach when he became president at the time of the Big Recession and he managed quite well.
In my opinion, Obama cannot perform miracles, just as you point out Carole, although he is certainly giving some hope to his country. But we will have to see what he is "allowed" to do. There are many factors and groups that control both politics and economics in the USA. One person cannot do much against them, even if he gets the support from ordinary people.

[quote=Neil T;107316]In the first five days of this year, the pound has gained about 7% against the euro.
The european bank is likely to reduce its base rate this week in response to reported reduction in inflation to less than 2%.
The likely reduction in the UK bank rate will already be factored into the exchange rate, and my prediction is that the pound will continue to gain.
The FTSE has risen 8% in the last five trading days, and this is likely to strengthen the exchange rate.

I believe the apparent strength of both the the dollar and the euro to be spurious.
The strains in the different euro based economies will continue to worsen, and effect its value.

But then again, I could be wrong........[/quote]

hmmmm .. I wonder if I should bet my equity on that !! Fold or hold. I'm holding my Sterling for a little while longer ...

Interestingly I have watched the £ rise against the € this week and especially today and it is now at 1.1054 - amazing. Wonder if it will hit 1.20?

Message[SIZE=2][SIZE=3][quote=Gala Placidia;107326]I think that Obama will try to keep a lower rate of exchange for the US dollar against the euro because this will favour his economic plans. Roosevelt took that approach when he became president at the time of the Big Recession and he managed quite well.
In my opinion, Obama cannot perform miracles, just as you point out Carole, although he is certainly giving some hope to his country. But we will have to see what he is "allowed" to do. There are many factors and groups that control both politics and economics in the USA. One person cannot do much against them, even if he gets the support from ordinary people.[/quote]

The world has changed and no person or government will be able to control exchange rates. This is a very interesting article on the future possibilities of the Dollar

[/SIZE][URL="http://www.telegraph.co.uk/finance/4125947/Willem-Buiter-warns-of-massive-dollar-collapse.html"][SIZE=3]Willem Buiter warns of massive dollar collapse - Telegraph[/SIZE][/URL]

[SIZE=3][B]Americans must prepare themselves for a massive collapse in the dollar as investors around the world dump their US assets, a former Bank of England policymaker has warned. [/B]

A lot of people have underestimated how much the current US administration have destroyed the $. If the world economies do not take off in the next few years there is a chance that there will be an almighty reckoning.

IMHO in the long term, the world will revolve around the Euro, Riminbi and a lesser extent the Dollar (that is if the Arab nations do not also decide to float a common currency). The whole game is changing and there is a high chance that the euro skeptics will be squealing in a few years time.[/SIZE][/SIZE]