The Eurozone or also called Euro area is the monetary union of the European Union. It consists of 19 members, which are using the Euro as their official domestic currency. The rest of the members of the European Union are still using their national currencies. One example is the United Kingdom where there is still the British Pound in use . In the United Kingdom, it is quite a controversial topic for several years if the country should introduce the common European currency or not. The Euro itself is already in force since January 2002. This paper will discuss, if the United Kingdom has lost out through not being part of the Euro area, or if there are any advantages of having the Euro. I will start analyzing which impact the Euro has on the
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With the signing of the Maastricht Treaty, member countries of the European Union wanted to implement a tool to make trading and travelling within the common market much easier. Further, it should help to establish a European financial market and make a strong unity out of Europe on the global financial level . The idea is that the common currency will support the economic growth of the member states and help certain weaker states to improve their economic growth. It also offers an enhanced integration of the financial market of the member countries . However, the idea stated above never got a nationwide strong support in the United Kingdom . Many scholars argue that it is no surprise, as the United Kingdom is not integrated as much in the whole process of Europeanization as other countries anyway. The country on its on island always questioned European policies and never wanted to be too connected to mainland …show more content…
The Euro is next to the US Dollar and British Pound one of the main currencies on the global financial markets . Foreign currencies are able to weaken the Euro and affect the economic situation in each of the Euro area countries. A weak Euro has the result that all Euro-members have difficulties to trade with countries outside the Eurozone . The United Kingdom in the opposite managed to be independent from the Euro. Due to this fact, the British Pound was never influenced by any major Euro fluctuations. When the Euro is weak, 19 states are affected by it. This can result in an even bigger crisis, compared to when only one country is affected. In addition, the individuals in all Eurozone countries, as mentioned above, are affected when dealing with overseas states and
With the signing of the Maastricht Treaty, member countries of the European Union wanted to implement a tool to make trading and travelling within the common market much easier. Further, it should help to establish a European financial market and make a strong unity out of Europe on the global financial level . The idea is that the common currency will support the economic growth of the member states and help certain weaker states to improve their economic growth. It also offers an enhanced integration of the financial market of the member countries . However, the idea stated above never got a nationwide strong support in the United Kingdom . Many scholars argue that it is no surprise, as the United Kingdom is not integrated as much in the whole process of Europeanization as other countries anyway. The country on its on island always questioned European policies and never wanted to be too connected to mainland …show more content…
The Euro is next to the US Dollar and British Pound one of the main currencies on the global financial markets . Foreign currencies are able to weaken the Euro and affect the economic situation in each of the Euro area countries. A weak Euro has the result that all Euro-members have difficulties to trade with countries outside the Eurozone . The United Kingdom in the opposite managed to be independent from the Euro. Due to this fact, the British Pound was never influenced by any major Euro fluctuations. When the Euro is weak, 19 states are affected by it. This can result in an even bigger crisis, compared to when only one country is affected. In addition, the individuals in all Eurozone countries, as mentioned above, are affected when dealing with overseas states and