EMU
EUROPEAN MONETARY UNION
The EU needs a Single European Currency to achieve the Political dream of a single European Nation.
INSTEAD OF ADMITTING THIS
THEY SAY:
Forgetting other possible disadvantages it would still take 20 years to break even from the £15 BILLION cost of such a changeover. Accountants KPMG estimate a figure nearer £30 Billion. Retail sector costs would be £3.5 Billion. Each computer terminal and software conversion costs around £425.
Not likely! £UK and $US are vitally trade-linked, variations only 4 - 5%. The artificial EMU will cause huge variations with the $US, destroying UK International business. A European Central Bank, even if politically neutral, could hardly set interest rates to suit a UK economy. Labour mobility won't help because of language, rights of residence, culture and labour inertia difficulties. Lowest estimates for joining EMU are £22.3 BILLION increase in EU contributions and 1.9 million more unemployed - and a very unstable UK economy.
A 'scare' tactic. Inward investment projects soared when the UK opted out of EMU "for the time being". Japanese Investment House Nikko Europe said that many Japanese companies want the UK OUT of EMU.
Such spoon fed propaganda can't alter the facts. The 0.15% saving on money changing costs is nowhere near the estimated 2.6% price increases caused by changeover costs - BEFORE a single EURO hits the tills. If other EU countries go ahead then staying OUT of EMU is best for the UK economy.
Speculators will make a killing out of the new currency! Long term effects of allowing weak currencies to join may even bring the Euro crashing down. The Maastricht Criteria were undermined by ignoring National Pensions liabilities (producing, for instance, a German Government debt of 200% of GDP - not 61% as claimed). Despite magical accountancy trickery most EU countries failed even the most basic of the Maastricht Criteria - but were still allowed to join because their economies were "... moving in the right direction."!
Deterred? - Speculators can barely hide their excitement! All common currency experiments in Europe and across the world have ended in economic disaster. EMU is just the biggest and the most dangerous yet.
That is why EMU is bad for business and -
IGNORANCE IS A BIT FISHY?
Britain has hundreds of Fisheries Inspectors ruthlessly harrassing fishermen to obey EU rules and driving them out of business. Yet in Spain there are only seventeen Inspectors all of whom are apparently firmly based in land-locked Madrid.
Why don't we learn to ignore EU laws like other EU countries? - a question for another TEC leaflet.
This leaflet (1 of a series of 12) is a rare chance for people to learn something of -
THE TRUTH ABOUT EUROPE
URL = "https://members.tripod.com/~eurotruth/10.htm"
© TEC 1998