Discuss the Economic Advantages and Disadvantages to the Uk of Participation in the
Discuss the economic advantages and disadvantages to the UK of participation in the
European single currency (Euro). Will British businesses be better or worse off if the
country decides to participate?
Introduction of Euro in the world’s monetary union is a milestone. Eleven countries were going to create EMU at the beginning, now there is a long queue to join in EMU. Most of the EMU members get more advantage then disadvantage to join in Euro. Euro creates a large market in the Eurozone. Three core members of EU (Great Britain, Sweden and Denmark) still not participate in European single currency. Many European countries are very excited to join in EU, some of them decided to implement European rate mechanism- 2 (ERM-2). If Britain accept euro then the country poses both advantage and disadvantage. Productivity and living standard will increase if Britain joins in Euro. If they will not join, they have chance to fall further behind.
European Union
European Union is the union of twenty-seven countries. Most of the members of European Union come to join in EU from European Continent. The origin of European Union associated with foundation of European coal and steel community. Treaties of Rome or Schuman declaration formed European Economic Commission. Both these bodies are essential parts of European Union.
Rome treaty signed in 1957 for creating European Economic Community (EEC). Belgium, France, Netherlands, Luxemburg, West Germany and Italy are the core six members of EEC. During that period, West Germany and Netherlands built nexus among them by the help of European Steel and Coal Community. Among the six countries of EEC, they allowed free movement of labour and capital. Free trade also allowed. They abolished internal tariffs among them and set external tariffs. In enlargement stage, UK, Denmark and Ireland become member of EEC. Greece, Spain and Portugal joined in EEC in 1981 and 1986 respectively. After this enlargement stage, the commission president
European single currency (Euro). Will British businesses be better or worse off if the
country decides to participate?
Introduction of Euro in the world’s monetary union is a milestone. Eleven countries were going to create EMU at the beginning, now there is a long queue to join in EMU. Most of the EMU members get more advantage then disadvantage to join in Euro. Euro creates a large market in the Eurozone. Three core members of EU (Great Britain, Sweden and Denmark) still not participate in European single currency. Many European countries are very excited to join in EU, some of them decided to implement European rate mechanism- 2 (ERM-2). If Britain accept euro then the country poses both advantage and disadvantage. Productivity and living standard will increase if Britain joins in Euro. If they will not join, they have chance to fall further behind.
European Union
European Union is the union of twenty-seven countries. Most of the members of European Union come to join in EU from European Continent. The origin of European Union associated with foundation of European coal and steel community. Treaties of Rome or Schuman declaration formed European Economic Commission. Both these bodies are essential parts of European Union.
Rome treaty signed in 1957 for creating European Economic Community (EEC). Belgium, France, Netherlands, Luxemburg, West Germany and Italy are the core six members of EEC. During that period, West Germany and Netherlands built nexus among them by the help of European Steel and Coal Community. Among the six countries of EEC, they allowed free movement of labour and capital. Free trade also allowed. They abolished internal tariffs among them and set external tariffs. In enlargement stage, UK, Denmark and Ireland become member of EEC. Greece, Spain and Portugal joined in EEC in 1981 and 1986 respectively. After this enlargement stage, the commission president
References: Sloman J & Sutcliffe M (2004). Economics for Business, 3rd edn, NJ: Pearson Education McAleese D (1997). Economics for Business, Harlow: Prentice Hall http://en.wikipedia.org/wiki/Euro http://en.wikipedia.org/wiki/European_union http://en.wikipedia.org/wiki/Pounds http://www.google.co.uk/