"Five Reasons to Keep the Pound"
*In a single currency there will only be one interest rate. But because our economy is out of step with the rest of Europe, the single interest rate will nearly always be wrong for us. That will make our economy more volatile with unsustainable booms and deeper recessions.
*Most people in Europe think the single currency will lead to a European super state. The EU Commission President, Romano Prodi, has described monetary union and political union as "two sides of the same coin". That may be what people in Europe want. But it is not what the British people want. If we keep the Pound, Britain can keep its independence.
*There is a great danger that joining the single currency will mean handing over our power to set our own taxes. This could mean British taxes rising by a sixth, to the levels in the rest of Europe.
*With the fifth largest economy in the world, Britain can make a success of its own currency, if we want. No-one suggests that much smaller economies like Australia, Canada or Switzerland have to scrap their currencies to survive.
*It would cost billions of Pounds for all British businesses to change their systems to the Euro. But only a small proportion of them would benefit from reduced costs of trade with Europe.
Only 1.8 % of euro companies use the Euro
Only 1.8 per cent of euro-zone companies use the Euro to conduct business. (source: Daily Mail, Tuesday January 4th, 2000 Quarterly Memorandum on the Future of the Euro).
Scrapping the Pound will cost £36 billion
A detailed report published by the industry pressure group, Business for Sterling, estimates that the cost of scrapping the Pound could be up to £36 billion (4.2% of GDP). This is getting on for the cost of the entire education budget (£40 billion) or the NHS budget (£49 billion).
Taxes in the UK could have to rise by as much as a fifth
Most politicians in Europe think monetary union should be followed by tax harmonisation. But Professor Tim Congdon has calculated that taxes in the UK would have to rise by as much as a fifth in order to bring them into line with the rest of the EU (Lombard Street Research, February 1999).
One-size-fits-all interest will be bad for the UK
A one-size-fits-all interest rate set to suit conditions in the EU would nearly always be wrong for us. Our economic divergence with the Continent means that when other European countries need low interest rates we need higher rates and vice versa. It also means that external shocks can affect Britain in a different way to other EU countries, and require a different interest rate response.
UK output could be reduced by £9 billion
UK output could be reduced by £9 billion through the loss of control of monetary policy if we joined the single currency, according to a study published by the Bank of England.
(source: Financial Times, 5 November 1999)
GB exports to Europe are less than a fifth of GDP
British exports to Euroland account for less than a fifth of British GDP. In other words, more than four-fifths of the British economy is not involved in trade with Euroland.
(source: ONS Economic Trends, December 1998 and ONS: The Blue Book 1998). Exports (visible and invisible) to Euroland in 1997 were £151 billion; British GDP was £802 billion; thus exports to Euroland as a proportion of GDP = 18.8%.
The British economy moves in step with the US, not Europe
The British economy and British interest rates and exchange rates, are more in step with those of the US, than with those of the Continent.
(source: HM Treasury, October 1997: UK Membership of the Single Currency: An Assessment of the Five Economic Tests).
The City increased its share of financial business within Europe
Far from suffering outside the Euro, the City has actually increased its share of financial business within Europe since the currency was launched last January. The former Lord Mayor of London, Lord Levene, said that banks and brokers are: ‘certainly not suffering and, if anything, increasing [their] market share.’
(source: The Times, 9 November 1999)
Prodi: European Commission is "the Government of Europe".
On 27 October 1999, The Times quoted Commission President, Romano Prodi describing his European Commission as the "government of Europe". He said: "But what is the Commission? We are here to take binding decisions as an executive power. If you don't like the term government for this, what other term do you suggest? Consultative commission? I speak of a European government because we take government decisions."
Julian Lewis MP
93% of French tourists: 'spending the Pound' is a highlight of visiting Britain
93% of French tourists cite 'spending the pound' as one of their favourite aspects of a visit to Britain.
(Source: Liberation poll, Dec 98)
[Apr 15, 2000]
Britain Will Survive!
Quite simple really, I wish to keep the pound. Unlike our European partners (I'm English not European!!) we have a booming world trade. We have a natural survival technique and we will survive quite well with our pound.
Author:
Philip Potts
[March, 2000]
ICM Research Poll
QUESTION: Do you think Britain should replace the Pound with the Single European Currency?
VOTING INTENTION:
TOTAL...CONS....LAB...LIB...DEM...OTHER
Base.1207
Yes .......28% .. 17%.. 42% ... 31%.... 43%
No ........62% ...75% ..51%.. 59% .... 52%
SAMPLE DETAILS: ICM Research interviewed a random sample of 1207 adults aged 18 + by telephone between 17th and 18th March 2000. Interviews were conducted across the country and the results have been weighted to the profile of all adults.
Where %'s do not = 100% due to rounding.
Margin of error for a sample this size = +/- 2.8%
http://www.aurecon.de/finplan/euro/000422-keep-pound-campaign.htm