The Economic and Political Environment of the UK - Essay Example

Contemporary issue in the Economic and Political Environment of the UK Britain and the Euro Should we join or not To begin with I would like to mention that some problems in the Economy of the UK really exist. First of all they are connected with the introduction of the new currency. It is the Euro. There are a lot of talks connected with this question. Much debate is held according to this topic. We hear huge number of discussions for and against it. Almost every inhabitant of the UK has his or her own opinion as for this reform. While watching the BBC news we can get the latest information concerning this question. As for me, it is interesting to learn the current situation at home and abroad. And now I will try to give you an accurate account of the economic situation in the United Kingdom. (Minford) At the present moment Britain does not want to accept the common currency in the EU, and there are some reasons for it. First of all, the economic conditions are not suitable for it, but my point of view is that the Government should not hurry the events. Chancellor of the Exchequer of the UK thinks that the country is not ready to join the European currency. Tony Bluer is of the some opinion. He is known to be a supporter of the European fusion, but he has not made the official statement yet. But still the decision has not been taken. (Minford) The main problem is in the economy of the UK is that it is not ready for such global changes. Observers say that Chancellor of the Exchequer isn't eager to introduce the country into the European zone. Prime Minister and the whole Labour party like the idea of the economical reunion with the continental Europe. There are some reasons for it. Firstly, Britain wants to be the leader of the EU, and for it the country should have the same currency as the whole organization has. (Marsday) Secondly, there is a probability of split between the members of the Labour party. And it is not profitable for the Prime Minister. Thirdly, the Conservative party can use antagonisms among the Labour party leaders which exist. From the economic point of view it is profitable for Britain to join the Euro. But the most suitable moment for it is when the Pound will be a bit closer to the Euro. In such a way the economy of the country will not feel a big strike. Otherwise, there will be a recession of the economy. But still, the nation won't feel it, because of the high development of the social program in the country. But the competing the Conservative party is strongly against it. They lost the trust of people, because of being against joining Britain the EU. Their most influential argument is the historical currency of the country. (Marsday) Their motto is: Let's preserve the Pound. Almost half of the country supports this idea. (Minford) The Conservative Party says that people must decide whether to change the national currency or not. A national referendum must show what to do with the problem which exists. The leader of the Party is sure that the country can successfully do without the Euro. He says that British people do not want to join the Euro. People know that it is a political decision, and the economic policy is not related to it. He adds that Tony Bluer just wants to choose the suitable moment and win the referendum. The Head of the Chamber of the Commerce, David Frost, says that the Government will decide whether to join the Euro or not, but later. However the Government should denote their actions for investors to know what to do with their capital formations and what to do next. The striking example of it is the Japanese corporation Toyota. It is one of the biggest foreign investors in Britain. (Marsday) At first, Toyota and almost all the other Japanese companies wanted Britain to introduce a new European currency. They were alarmed what would be with their investment. (Minford) However, now the Head of the Japanese corporation says that Toyota has a stable position in the country, and is not going to enlarge their capital investment. The corporation is not troubled much that Britain is out of the Euro zone. Toyota is strongly convinced that only nation must decide whether to join the Euro or not. The company has its factories in Wales and Derbyshire. Britain is an important production plant in the European Union. Also the Euro is not as stable as the Pound. And it is easier to make schemes for future knowing that the coinage will not be much debased for sure. From the economic point of view the main problem is in the development of the economy of the country. But the Head of the company which is against joining the Euro is concerned that Britain shouldn't accept the European currency to develop successfully in Europe. According to his words, the country remains more powerful while it controls its economy itself. (Minford) To sum everything above mentioned up, I would like to express my own opinion about the problem which exists in Britain: to join the Euro or not. I am strictly concerned that the country should keep its currency as it is. (Marsday) The Government shouldn't change anything. The Pound has been known to be one of the most stable currencies in the world for many years. It is the part of the history of the country. And it is not a secret that British people respect their traditions. I support the opinion of the Conservative Party. It is obvious that the economic position of the UK is one of the most developed in the world. I do not see any objective reason for Britain to introduce a new currency. On the one hand you can disagree with me and say that every member of the EU must have equal rights and the law is one for everyone. (Marsday) But on the other hand we must not forget that this was created to improve the economic, political and social position of its members. From the world's history we know that such global changes are not accepted easily by the society. The economic recession follows it. EU tries to build an ideal society based on democracy. So why should anything be changed if there is no need in it Reforms must be done to improve the state but not to equalize one's rights neglecting the history and traditions of the country which were established long ago. Bibliography Minford, Patrick. "Britain, the Euro and the Five Tests." The Cato Journal 24.1-2 (2004) Kris Marsday "What means euro for working class" (2002): 98-100. Read More