Beaconsfield Liberal Democrats discuss Euro pros and cons

10.00.00pm UTC (GMT +0000) Tue 16th Mar 2004

At a political meeting on March 16, Beaconsfield Liberal Democrats reviewed all the main arguments for and against the UK adopting the Euro.

The economic arguments are not overwhelmingly favourable or unfavourable and people can justifiably come to different conclusions about the balance of advantage. That is why it is right for the British people to decide the issue in a referendum.

Three reasons for adopting the Euro were put forward:

1. It makes international trade with our closest partners easier.

2. It safeguards inward investment into the UK and protects jobs in exporting industries.

3. It helps ordinary citizens wishing to travel within Europe by eliminating currency exchange.

Three reasons against adopting the Euro were put forward:

1. One interest rate for the whole of the Eurozone will not be ideal for every country.

2. Other countries may not play by the rules, for example of the Stability and Growth Pact.

3. We lose the option of devaluing the pound to become more competitive - we have to pick an exchange rate at which to switch to the Euro and then we are stuck with it.

Party members were convinced that the balance of advantage for the UK lay in adopting the Euro at the right exchange rate.