| European Monetary Union |
The decision whether or not to abandon our currency is the most crucial decision that this country will ever have to take in peacetime. Lets put this into context. At the time of writing, the British economy is the fourth largest in the world, headline inflation is down at 2.8 per cent (March 2003), interest rates are coming down, unemployment is down to the lowest it has been for 25 years - why put all this at risk by joining a risky economic project that in all likelihood will not benefit the British economy (Optimum Currency Area theory). Britain is thriving outside the Euro, and I firmly believe it to be in our national interest to maintain the flexibility to run our economy to suit British interests. A single currency needs a single economic policy and an economic government in Europe if it's going to work. Replacing the pound would mean interest rates, taxes, and public spending controlled in Frankfurt and Brussels. The euro is forever - if it's a disaster, we can't leave. This would mean higher unemployment and lower living standards. Unemployment here is half the level in the Eurozone, and we are the fourth largest economy in the world. We don't need to give away control. How will it affect you? In the euro, our economy would be controlled in Frankfurt and Brussels but our economy is different from, say, Sicily or Finland, and therefore needs different policies. The independent Bank of England (MPC) and any British Government are bound to have better policies for Britain than a European Bank and European economic government. Britain doesn't need the euro. Unemployment in the Eurozone is double the level here and we get far more investment from around the world than Germany and France. The NHS and transport are in crisis and terrorism is a real threat. The government should concentrate on real priorities. Tax rises? A European currency needs a European tax. That could cost every British household about �200 per month. The major euro economies have bankrupt state pension systems. Joining the euro would be like opening a joint bank account with people who are going bust. Changing over to the euro could cost every British household hundreds of pounds. The changeover cost could be used by businesses to push up prices. Two-thirds of businesses want to keep the pound. We can trade with the EU without replacing the pound. Hiring and firing Voting and elections are one thing, but with the euro, it wouldn't matter what we think - decisions would be made in Brussels and Frankfurt however we vote. Remember 1992 when we tried linking currencies in the Exchange Rate Mechanism? It was a disaster causing unemployment and bankruptcies. We don't know if the euro will succeed. The euro is forever - if it's a disaster, we can't leave. If you don't know, then vote no. Keep your job, keep control, keep the pound! |
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