The Euro

[whotheheckami]

Not the most scintillating subject but:

Do you think Gordon Brown was right to postpone the decision to offer the electorate a referendum on Britain adopting the euro?

Comments

[lostcarpark.livejournal.com]

A good point. I think as an economic entity, Europe is generally a good thing. There was a time when currencies provided a useful buffer between different economies, but as we move into a global economy, this is less and less true, and they simply become an annoyance for companies who have exchange rate risk, and a tool for speculators to manipulate markets. I think we will eventually reach a point where a single world currency becomes inevitable.

It also makes sense to standardise on laws relating to trade. If a manufacturer of radio equipment has to investigate radio emmision standards in 25 countries, and comply with them all individually, that is a significant drain on its resources. If all 25 countries agree on one radio emission standard, that makes it considerably easier for the manufacturer to produce one product which can be sold across the entire narket.

As a political entity, I'm not so sure. I don't think we need to create a new European empire. Someone made the point that as of next year, the EU will be the largest free trading block since the Roman empire. Having said that, I'm not sure that having only one superpower is a good thing, and there's an argument that a European superpower would keep the Americans in check.

Of course, if that theory is wrong, the cockroaches inherit the Earth...

Re:

[whotheheckami.livejournal.com]

I'm very pro-European and was convinced long ago that joining the euro makes sound economic sense. In more recent years the evolution of the US as the sole Superpower and world bully policeman has been deeply troubling. I would like to see Europe becoming a credible stabilising force on the worst of US excesses