03 December, 2008

UK: the euro?

There's been a fair bit of talk in recent days about Britain joining the euro. Not just from Mr Barroso, the jefe de la junta in Brussels, but whispers in markets, too.

It scarcely need be said that it would be barking mad: even in the short term there is the problem that the largest economy, Germany, has a low budget deficit and doesn't believe in borrowing to get out of recession (Frank-Walter Steinmeier, the German foreign minister, alluded to it saying 'Just because all the lemmings jump off the cliff at the same time doesn't make it the right decision); in the long term the structural differences are likely to widen.

But it seems even dafter politically. There has to be an election by Spring 2010. Just imagine the headlines in the Sun if Brown were to attempt this having 'abolished the pound', 'sold out to Europe'.

No, mes frères, I think not.

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