REGARDING the euro and business, Chris Davies MEP claims in his recently-published letter that by joining the common currency we can put an end to many worries about exchange rate differences and manufacturers will be able to plan for the future.
This is wishful thinking. The euro is not some kind of magical currency that will be immune from the ups and downs of currency exchanges.
Most raw materials that Britain imports for subsequent reprocessing are traded internationally on world markets in US dollars. The euro will fluctuate against the dollar and other world currencies as it has done considerably since its launch three years ago.
With the £, we can set our own interest rate for our own currency, affecting jobs, mortgages and personal and business loans directly. With the euro, there is one single "one-size-fits-all" interest rate for 12 different countries, all with different economies and needs. Losing control of our own economy is what business and industry fears which is why the "No" campaign is supported by the Federation of Small Businesses and the Institute of Directors.
Our economy is different to that of France, Germany, Greece, Italy and the other countries in the euro currency zone and we need to keep control of our own interest rate.
The people who say we should join the euro now are the same people who said we should join the ERM (Exchange Rate Mechanism) some ten years ago when we linked the pound to the German currency. Interest rates were right for Germany but completely wrong for us. They went up into double figures, leading to the collapse of 100,000 UK businesses and our unemployment doubled. That was the cost of losing control of our economy and having the incorrect interest rate and politicians should learn from past mistakes.
Business for Sterling, part of the No campaign, has a North West council of more than 70 businessmen and women who believe that Britain should stay in the EU but not join the euro for the foreseeable future. We put the business case for keeping our own currency for powerful economic reasons.
Details: www.no-euro.com
David Briggs
Chairman, Business for Sterling North West (part of the No campaign)
C/o Third Floor
North Square
11-13 Spear Street
Manchester M1 1JU
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