June 06, 2003
British continue to waffle on the Euro.
The
Guardian has several articles on the latest on British attempts to decide whether they are Europeans or Americans. There's one entitled
Cabinet agrees 'not yet' on euro, and one on just how little the Euro nations seem to care,
Wake us up when you're finished. And one on various British opinions on the subject,
Euro or not Euro. Their special section on the subject is
here.
The one about European attitudes states rather conclusively just how well established the Euro already has become among the nations that have adapted it.
Brightly coloured euro notes and impossibly shiny euro coins have been in people's pockets since January 1, 2002, and that feels like an age. Putting it bluntly, the single currency is old hat.
For many, it is as if the French franc and the Spanish peseta never existed. There is no nostalgia and little sentimentality.
Germany, where economists and politicians worry about the suitability of a one-size-fits-all interest rate for the EU's largest economy, may be the exception.
But on the street elsewhere people don't give it a second's thought. They can't comprehend why anyone would not embrace the euro. Start explaining the UK's concerns and you will be met with a quizzical, almost pitying look.
I think the British will eventually do it. Unless they wait too long and then are told they're no longer wanted. They should do it now while the pound is still up. Personally, I'd say they lost the battle thirty years ago when they gave up the farthings, shillings, guineas and such. If they are going to stick with the pound, they should go back to that. Then they can become a quaint historical backwater just like the Swiss. At least they'd pick up some tourist income to make up for the massive loss of EU investment.
As I
noted the other day in commenting on the ECB's decision to lower interest rates, I think the British delays and uncertainty are doing significant damage to the global economy. They're hurting the dollar, the euro, and yes, the pound. If they don't make up their mind people will have no choice but to interpret them as damage and route around them. In fact, it sounds as if the Europeans are doing just that.
Here's the
Scotsman's take on the subject. The Scots have a slightly different perspective on the subject. For one thing, with devolution they are on the track to full independence. That would almost certainly imply accepting the Euro. The same with Wales.
