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Currency Act - Essay Example
Author : lueilwitzike
Pages 2 (502 words)
In the hypothetical event that the United Kingdom passes a Currency Act in 2006 with the stipulation that it could not be repealed without referendum, it stands to reason that the government would be obligated to hold a vote before switching from the pound sterling to the euro…
The government could decide to sidestep the initial referendum because of its own notion that such votes are not legally binding; in this respect it would be correct (Mendelsohn and Parkin 47-51). The fact remains, however, that the original Currency Act held that the pound sterling could not be changed as the official currency of Great Britain until a referendum had been held. By bypassing this element of the original Act, the British government could be held accountable for the changed currency in any way prosecutors saw fit. The change from the pound sterling into the weaker euro could mean that any number of businesses would face monetary challenges in the way of investment, wages and ultimately in profit; if the right people with the means to bring the issue up did so, the government would have to admit it simply ignored the referendum aspect of the original Currency Act.
Despite the fact that an amendment or repeal to the Currency Act is, in effect, illegal without referendum, the establishment of the euro as the official currency of Great Britain would not be too difficult a feat if the government was decided on a course of action. This is particularly true because of the European Monetary Institute. ...