An assessment of whether the U.K. should join the single European currency by looking at the Treasury's five economic tests.
Written in 2003; 964 words; 5 sources; APA; $ 34.95
Paper Summary:
The paper examines how since the birth of the single European currency, there has been a constant debate in the United Kingdom on whether they should join. It shows how the present government have made it quite clear that they are in favour of the U.K. joining the single currency, but only if the economic conditions are right. It analyses the five economic tests set by the U.K. Treasury: Convergence, flexibility, investment, U.K. financial services and the possible effect on employment. It assesses whether they have been met and offers both sides of the argument as to whether the U.K. should join the Euro.
From the Paper:
"The first of the Treasury's Five Tests looks at the possibility of "sustainable convergence between Britain and the economies of a single currency". This looks at the UK needing to have similar interest rates, inflation, budget deficit, national debt and exchange rates as the economies in the Euro zone. Recent economic data shows some big differences between the UK and countries such as France, Germany and Spain, for example the UK has lower inflation and unemployment than these countries. The UK's public debt is also much lower, whereas its current account balance as a proportion of GDP is much worse that Germany and France but is much better than countries such as Spain."
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