Euro

Britain’s involvement with Europe since the war has been very little. History may be about to repeat it self as in the case of the Single Currency –Euro, as Britain is very reluctant to join. In the past, referendum has shown that most people on the U.K are generally against the Euro but more recently this seems to be changing. More people are now moving in favour of the euro, although the majority are against it. Whilst most people in the UK see the joining of the Euro as giving up sovereignty and national identity, others see the Euro as bringing greater economic and political benefits such as monetary stability and lower transaction cost etc.

The rest of this essay evaluates the relative advantage of joining the Euro. The argument for and against the euro is divided into political and economic.

The first economic benefit that is usually cited is the elimination of the transaction cost. This is the cost associated with having to deal with separate currencies. This is a mai...