The Euro - To Join or not to Join? 13th July 2003

In theory, the idea of joining the Euro is logical. Apart from the 'so-called' sovereignty issues, it may well equalise Pan-European competition that would allow UK exports to hopefully escalate without fear of exchange rate fluctuations that currently exist between the Pound and the Euro. British manufacturers (those who are left!) will certainly miss out if we don't join. In addition, IF import tariffs & taxes were equalised with rates across the Channel as they should be (fat chance), then smuggling and cross-border shopping of tobacco & alcohol would stop in its tracks overnight. However, although we could reduce custom personnel and save millions in wages a year, it may well create many unemployed ferry workers!

If tariffs & taxes were equalised goods may well be cheaper in the UK - or would Britain's infamous 'Rip-Off' culture during currency conversion nullify the possibility of lower prices? Any change in currency generally initiates inflation as businesses round up their prices - 1971 was a case in point. Or do we have to swallow the bitter pill in order to survive surrounded by a 'Euro pool'? In the long term can we REALLY afford to remain outside of the Euro? The stark answer is probably not!

Regarding so-called convergence, another point that has not been mentioned is that if fixed rates for new mortgages (I presume this applies to 'new' mortgages only !!??) become the order of the day, to comply with convergence, in light of the fact that interest rates are much lower in the Euro zone and fixed rates remain HIGH in the UK, what happens to those folks who get locked into these high UK fixed rate mortgages then find they'll be paying far more than if they converted to a fixed rate mortgage AFTER we have joined the Euro? Regardless, I actually fail to see why these convergence criteria matter.

Another mute point - HOW can we join when we've yet to converge properly with the metric system?! One can still buy a PINT of beer in the UK, have a PINT of milk delivered to ones door, and we still drive around with road signs in MPH instead of KPH !! O'yes, and we still drive on the left!! I also hate to think how many man-hours are lost EVERY DAY by people queuing up for their Euro's in British Post Offices and Banks (I waited 10 minutes for 50 quids worth of euro's at 1.38 to the £), and then finding you lose the equivalent of around 5% plus any commission between the actual Euro's value and almighty tourist rate rip-off. All this baloney just to swan over to mainland Europe for a holiday or a day trip and then be dictated too that you can only bring back so much booze and fags into the UK - whilst for instance, the Dutch or the Danes can swan across to Germany (where's it's much cheaper than Denmark) free of any border controls and bring back what they like without any limit. What a daft and shambolic situation.

I'd be interested if or what convergence rules were initiated by all other European countries prior to them joining the Euro - or are OUR convergence rules OUR concoction alone? If small economies like Portugal & Greece jumped into the Euro without any so-called convergence - why can't we? I say either stay OUT of the Euro and make the UK a tax-free zone or go in and take our chances. It's about time the British Government promoted a proper debate by at least providing us with ALL the pro's & con's of joining the EuroZone in plain simple language. Unless they start printing millions of leaflets explaining all this, and IF we do get a referendum - I'm fairly certain a fickle British public will say NON! NON! NON!

Regardless, whether we join the EuroZone or not I reckon we'll still have the unique privilege of living in RIP-OFF Britain!

So am I in favour of joining the Euro? On balance, you bet!

Paul M (aka.Sid) Editor Rip-Off Britain

PS: I came back after a biking trip from France recently and whilst over there I spoke to number of locals in France regarding the Euro. Contrary to most people's perception in this country that the introduction of the Euro in mainland Europe has increased prices significantly appears to be a misconception. I was told in no uncertain terms that since the Euro was introduced, prices have increased, but only by about 5%. Most of the French I questioned seemed quite happy with the Euro. What makes prices SEEM high in the Eurozone to us in the UK is that the value of the Euro has fallen (mainly due to a strong £ and $), and it's now worth roughly 1.43 Euro's to the Pound instead of around 1.60 to the Pound when the Euro was first introduced. However, it doesn't help when the likes of Macdonald's in Calais are ripping off tourists on the exchange rate of 1.23 euro's to the £