Should Britain adopt the Euro - Essay Example

This transformation has been successful in meeting its goal. Greece has since adopted the Euro while Sweden, Denmark and Britain, the latter of which is not considered a European country, have not. Many legislators and economists have suggested that it is simply a matter of when, not if, the UK will adopt the Euro. This discussion examines the benefits the UK will retain when this eventually happens and answers the legitimate concerns of those opposed to the transformation. Certain indisputable results have occurred following the conversion to the Euro.

It has eliminated the costs and risks involved when exchanging foreign currency with other counties of the EU and made more transparent the cost of products. By adopting the Euro, Britain would be allowed a place on the European Central Bank (ECB) board thus being able to participate in the economic policy of the EU.  This would enhance the political influence of the UK which in turn would produce beneficial long-term opportunities for its economy. According to many published studies conducted regarding the effect of the Euro, using a common currency has already proven to augment trade and competitiveness within the countries that use it.

One study that measured the influence of the Euro on trade discovered “countries that share a common currency trade about three times as much as countries without a common currency” (Micco et al, 2003). It is clear that trade between Britain and EU countries would escalate if the same currency was used. Differences in types of money present barriers to trade because of the cost factors involved in converting it. Large corporations would save significant amounts and open up previously unfeasible opportunities of trade to smaller companies.

Reducing the cost of trade will make Britain more competitive as companies will be able to charge less for products yet yield