WHY BRITAIN SHOULD JOIN THE EURO?
Two Personal Views on Britain and the euro By Charles Grant: Britain should join the euro within the next few years in order to enhance British power and influence. The case for joining is partly economic and partly political. Economically, British companies will not enjoy the full benefits of the European single market as long as they are separated from the main part of that market by a variable exchange rate. British business has a disincentive to export, import and invest in the euro zone while currency fluctuations continue to create risk and uncertainty over future returns. As a result, British companies will be more likely to retain a domestic focus and emphasis, compared with their euro zone competitors. Equally, euro zone companies will have less interest in doing business in Britain. Ultimately, British companies risk missing out on the economies of scale and profit offered by euro zone membership. This will damage the long-term competitiveness of the British economy. Politica
