Sat, 21 November 2009
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Expatica’s guest editor Dominic Hinde sounds off over Britain’s refusal to adopt the euro.I try not to express an opinion on things I don't know much about, economics being one of them, but one thing that has been getting on my nerves for a while is the stubborn refusal of the UK to join the eurozone, exacerbated by the increasingly flimsy pound.
We have a tendency to view Europe as something we can use externally, taking what we want without getting to involved. As a result, we were prepared to let the French and Germans go along with their crazy idea as long as we didn't have to do anything beyond get used to some different coins on our holidays.
Generally speaking, economists don't seem to laugh much except. Still, those who advocated a single currency for Europe must now feel some kind of positive emotion stirring within. In Britain, Gordon Brown takes a lot of unfair criticism (he is morally at least a far better man than Tony Blair and more down to earth than his conservative rival, if sometimes misguided). Yet his biggest mistake always has been his reluctance to take the UK into the eurozone.
It would do us good as a nation to adopt the euro, making Britain realise that we no longer rule the world as we once did, a final step in decolonialisation as it were. The difference in currency is another barrier in the 'us and them' mentality pervasive in the UK. When the EU members decided to set the admirable target of its citizens being fluent in at least one other language of the member states, the UK proceeded to remove foreign languages from schools as a compulsory subject. That is counterintuitive to say the least and feels a bit like a naughty child doing the opposite to what they are told despite knowing it's stupid.
In Scotland, where the banks issue their own money under license, one has produced a new 20-pound note, which looks suspiciously like a euro note. One of my good friends, who has quite traditional opinions on the sovereignty of the UK, genuinely believes that this is in fact a plot to introduce the euro without the population noticing. He says there will come a point where the notes look the same and the currency is worth the same and it'll be too late, which is exactly my argument.
Quite apart from all the other reasons why Britain should not enter the eurozone is inflation. I remember when we went decimal - it led to massive inflation as prices were rounded up. My German friends complain of the rise in prices when they gave up the Dmark - I say - I told you so!
Actually there where no rise in prices to speak of its just the ignorance of the exchange rate at the time between the D mark and Euro. And that something of this magnetude was happening all at once. Germans like to complain like everyone else when something new is introduced that they are not familiar with.
To argue that the Britain should adopt the Euro because the pound is 'flimsy' makes as much sense as arguing that Europe should have joined the pound when the Euro was weak. Or perhaps we should join the Yuan as the Chinese economy is set to boom. Currencies inevitably move against each other.
If anyone in Britain still thinks we Rule the World, I don't think even a change of currency would get through and the general concept of 'bringing Britain down a peg or two' is hardly a good reason for changing to a foreign currency.
The Bank of England is not that independent of the government as evidenced by recent government intervention of Northern Rock. As good or bad as our politicians are at least we can boot them out now and then - something not possible with the so called 'efficient Germans who control the Euro'. Which is after all a simplistic stereotype. Or perhaps we should have the French controlling our lovemaking and Spanish controlling our weather too:) Better still let's have the Belgians dictate our human rights legislation - oops too late...
As for it being frustrating stepping off of a train with the wrong currency and struggling to understand the Euro coins I would have thought the last person to have that problem was the author. And a million plus wonderful Europeans have happily made the move in the other direction and seem to have no issue accepting the pound.
Finally and most seriously, I don't think the author gives the British people enough credit. It might just be that they don't want to join the Euro because, like some crooked criminal fraternity, once you join you will will never ever be allowed to leave.
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