Title: What are the arguments for and against joining the Euro - History Learning Site
Headings: What are the arguments for and against joining the Euro
What are the arguments for and against joining the Euro
These are some of the arguments put forward for Britain joining the Euro
These are some of the arguments put forward against Britain joining the Euro

Content: Since around 20% of UK transactions are already dominated in US dollars, the demise of sterling will not produce totally unfamiliar circumstances. A common currency removes a significant barrier to free competition across national borders. A single currency promotes price-transparency – customers can readily assess the relative prices of similar products from anywhere within the union. The large Euro zone will integrate the national financial markets, leading to higher efficiency in the allocation of capital in Europe. The UK will benefit from an increase in intra-European trade flows and higher capital investment resulting from the development of a single currency. The UK has been a major recipient of foreign direct investment in recent years. Some commentators believe that this would be threatened by non-participation in the currency union. A single currency will be an important complement to the Single European Market, which would make the European Union a more powerful player in the global economy, and the UK might benefit from full-scale participation in this. One country can no longer devalue its currency against another member country in a bid to increase the competitiveness of its exporters. A European currency will strengthen European identity.