Will we have the Euro soon?

[Donkmeister]

The pound and the euro have reached parity. We're now in a situation where you can read a price tag in Europe and know that the number is the same as the price in sterling. Imported foods in the supermarket are expensive, as the pound buys so little abroad.

The economy is in a bad situation. At this moment, with complete confidence and conviction, all the europhiles can say to the eurosceptics "Told y'so! If we'd had the euro then we would be better off!" (of course, ignoring the fact that markets go up AND down, but when do facts get in the way of political debate? )

That doesn't worry me, to be honest. However, the govt may take now as a good time to push us into the Euro, with promise of stability and more money in your pocket.

If this happens, I can see one of two outcomes in the near future:

1) If we convert all costs at the going exchange rate, then the UK labour force is now the cheapest in western Europe, and cheaper than most of Eastern Europe. Good for jobs, cheap housing, prosperity. Doesn't fulfill the "white collar nation" dreams of Nu L8br (is that how they spell it?) but it puts food on the table.

2) We remain in the slump we are in, and we become a reminder to the East Bloc of their bleaker past where you have to queue for a loaf of bread and can't buy toilet paper without a proper permit.

 

[Shytalkz]

Ooh, I'll be alright then, I just used my breadmaker for the first time today and it came out fandabidozi - no queuing for me then

 

[tim west]

Ooh, I'll be alright then, I just used my breadmaker for the first time today and it came out fandabidozi - no queuing for me then

Eventually you'll seek more dough and expect a rise

 

[Shytalkz]

Tim....Tim....

 

[Trazor]

If we join the Euro,and the European Central Bank pursues a monetary policy for Europe, which is at odds with this countrys needs, we will be forced to go along with it.......

Having a separate currency, which is now being devalued, is a big help to this country as regards exports.
Exports are the only way this country will reduce its long term debt.
The downside is we are all poorer, relative to other countries.

 

[JohnD]

Having a separate currency, which is now being devalued, is a big help to this country as regards exports.

And if, as last year or next year, exchange rates move the other way, that is a very big UN-help.

If we join the Euro,and the European Central Bank pursues a monetary policy for Europe, which is at odds with this countrys needs, we will be forced to go along with it.......

You may be old enough to remember the days when the Thatcher pursued a monetary policy which suited some parts of Southern England, and the rest of the UK was forced to go along with it. Europe does at least recognise that different parts have different needs, and even the smaller countries have more of a say in Europe than UK regions do in Westminster.

Exports are the only way this country will reduce its long term debt.

and international trade is much more difficult, risky and expensive if you are trading using fluctuating exchange rates


If we did decide to go into the Euro, there would doubtless be a period of stabilisation, probably a couple of years, while the exchange rates moved around and settled down.

Hopefully we would go it at what most people considered to be a reasonably fair rate. Obviously some people would complain whatever the rate was.

If we did go in, it would save a great deal of pointless expense on exchange rates and currency hedging, and reduce commissions and fees to banks. Hooray.

It would also make it a more sensible business proposition to set up a business mostly dealing with Europe, since you would not have the constant worry of never knowing what your materials would cost, and what your selling prices would be.

If you had a car or other factory, you might be able to plan ahead more than 12 months and have some confidence that you would not suddenly become unprofitable, and would also be able to sell your goods at a competitive price.

If you chose to move abroad, e.g. buy a home in Spain, you would know what your home would cost you, and what your mortgage or loan repayments and other expenses would be compared to your pension or other income. You would not have the risk that you suddenly needed 50% more £ to pay your bills because the exchange rate had moved against you. Equally you would not have the risk that if prices moved the other way, your overseas investment would be worth fewer £ than you had paid for it.

 

[Donkmeister]

The downside is we are all poorer, relative to other countries.

Reminds me of something I was told: "people are less concerned with earning more, than they are with earning more than the man next to them".

I really don't care if the price of my house would only buy a poky flat in the back-end of Warsaw at the moment, just so long as I can have a decent standard of living here.

So, reliance on imports should be stopped.

 

[Zampa]

Ooh, I'll be alright then, I just used my breadmaker for the first time today and it came out fandabidozi - no queuing for me then

Eventually you'll seek more dough and expect a rise

And get a slice of the action too..

 

[securespark]

As long as you know which side your bread's buttered on...

 

[kevplumb]

yer cant beat the $ for long term