"Was it over the line?" – maybe one of the most import questions ever in England’s football history. Few if any goal has been discussed more often. At 2-2 in extra time in the 1966 final against West Germany, with eleven minutes of extra time gone, Geoff Hurst shot from fairly close in and the ball hit the underside of the cross bar, bounced down - apparently near the line - and was cleared. The referee awarded a goal after speaking to the linesman. Did the third goal cross the line? It is impossible to know for certain. The final whistle blew. England had won the World Cup at Wembley for the first time (EFL Reading, 2004). Obviously this decision of the referee brought the World cup to England .
In politics, where decision have to be made every time, there are sometimes situations of uncertainty. Not always can a decision be made from the comfortable situation that everything is 100 per cent clear and the foreseeable benefit can convince even the hardest doubter.
One of these situations for the United Kingdom nowadays is the question if they should join the EMU.
Inhaltsverzeichnis (Table of Contents)
- Situation
- More trade in the single market
- The result of a single currency will be lower cross-border transaction costs.
- Faster economic growth
- Faster economic growth
- A single currency would eliminate the risk premium on separate currencies.
- Foreign Direct Investment (FDI)
- Lower inflation
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work examines the economic implications of the United Kingdom joining the European Monetary Union (EMU) and adopting the Euro. It explores the potential benefits and costs associated with this decision, focusing on the main economic factors and their impact on the UK economy.
- The potential impact of a single currency on trade within the single market
- The effects of a single currency on economic growth and interest rates
- The influence of a single currency on foreign direct investment (FDI)
- The potential impact of a single currency on inflation
- The broader implications of EMU membership for the UK's economic sovereignty
Zusammenfassung der Kapitel (Chapter Summaries)
Situation
The chapter examines the initial context surrounding the UK's potential entry into the EMU. It highlights the existing "offshore" mentality within the country, with a significant portion of the public opposed to a single currency. The chapter also explores the division of opinion, outlining three distinct groups: those opposed to EU membership, those in favor of joining the Eurozone, and the undecided group who are open to joining but prefer to observe the currency's performance first.
More trade in the single market
This chapter delves into the potential benefits of a single currency for trade within the single market. It argues that a single currency would reduce cross-border transaction costs and increase trade volume between UK and EU member states. The chapter provides evidence of increased trade between Eurozone members since the Euro's introduction and highlights the potential trade advantages that the UK could gain by joining the EMU.
Faster economic growth
The chapter explores the potential impact of a single currency on economic growth and interest rates. It argues that a single currency could lead to lower interest rates due to the elimination of the risk premium on separate currencies and the reduction in budget deficits under the Maastricht convergence criteria. The chapter discusses the potential for increased business investment, job creation, and lower mortgage rates resulting from lower interest rates. It also addresses concerns regarding the loss of monetary sovereignty and argues that the benefits of joining the EMU outweigh the potential drawbacks.
Foreign Direct Investment (FDI)
This chapter explores the potential impact of a single currency on foreign direct investment (FDI). It argues that a single currency could attract more FDI to the UK, particularly in regions that have previously benefited from multinational investments. The chapter explains how currency shifts can negatively influence the flow of income from investments, and how a single currency would mitigate this risk for investors.
Schlüsselwörter (Keywords)
The primary focus of this work revolves around the economic implications of the United Kingdom joining the European Monetary Union (EMU) and adopting the Euro. Key topics include the single currency's impact on trade, economic growth, foreign direct investment, and inflation. The work further analyzes the potential benefits and costs of EMU membership, considering the broader implications for the UK's economic sovereignty and its relationship with the European Union.
- Quote paper
- Alexander Dürr (Author), 2004, To what extent do you agree with those who argue that the UK should join the European Monetary Union (EMU)?, Munich, GRIN Verlag, https://www.grin.com/document/32969
