Should the UK join the Euro or remain master of its own fiscal destiny. What are the arguments for and against?

Essay by RennesUniversity, Bachelor's October 2006

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Should Britain join the Euro or remain the master of its own fiscal policy, perhaps losing influence within the European Union (EU) as a consequence? British enthusiasm is low with only 37% of Small or Medium Enterprises favouring inclusion and 59% of small businesses opposed . An EU survey found Britain was least proud, and had the lowest opinion of Europe. Britain also had the highest public opinion against the Euro (65%) and felt it had benefited least from EU status . When assessing British business attitudes to Europe this cultural bias cannot be discounted. Certainly the government needs to help informed decisions. This document is intended to present facts by outlining the concepts of the Single Market and Currency, collate opinions and try to draw some conclusions on to which way Britain trade should proceed. Are its perceptions of Europe insight or inertia?

The Single Market

Coming into being on 1st January 1993 the Single Market was intended to increase economic growth by increasing productivity, efficiency and job creation.

In 2004 it expands to encompass almost 500m citizens in 25 countries; surely an endorsement in itself. The objective remains to continue to remove trade barriers, enabling increased opportunities for all businesses based within EU to trade competitively within its borders. But what has been its impact on British export trade?


The then 12 EU members formalised the Single European Act (SEA) in 1986. It

was an agreement to function as a single unified market by midnight on the 31st

December 1992. The SEA was to work towards the 'Four Freedoms' removing

protectionist invisible trade barriers. It would open up national markets as never

previously possible, abolishing internal borders and facilitating the free movement of

goods, services, people and capital within the EU. This was expected to achieve cost...