Should the UK join the Euro - Essay Example

This also eradicates the uncertainties relating to exchange rates and thus helping the banking sector to invest in other member nations. However, apart from the above discussed advantages of joining the Euro, there also lay certain drawbacks that cannot be denied. One of such drawbacks includes the prevalence of common interest rates in different countries, which greatly affect their respective economic and overall development procedure. It is worth mentioning that the European Central Bank (ECB) may discourage the UK to join the Euro, as it plays an imperative role in designing effective monetary as well as fiscal policies.

Nonetheless, deficiency in obtaining support from the member nations also highly discouraged the UK in joining the Euro. Thus, taking into concern these drawbacks, it is to be affirmed that the UK would require thinking number of times before joining the Euro. Nevertheless, there lays the probability for the UK to reap several significant benefits in terms of developing its economy by joining the Euro based on the above stated advantages of the same. Thus, with this concern, it can be affirmed that the UK would become more influential to compete with other powerful nations by joining the Euro.

Euro, which is the official currency of the European Union, was introduced in the year 1999. However, there lay numerous discussions regarding the introduction of Euro as a common currency amid the countries of the European Union. Nevertheless, finally in the year 1995, there was a consensus and all the member countries of the European Union agreed to introduce a common currency and named it ‘Euro’. The nations of the European Union who are using this currency at present are the Netherlands, Cyprus, Slovenia, Greece, Germany, Latvia, Luxembourg, Austria, Estonia and Spain.

Notably, the countries of the United Kingdom (UK) such as England, Wales, Scotland and Northern