United Kingdom opinion polls showed that the majority of British people were against adopting the euro; and in a June 2016 referendum, the United Kingdom voted to withdraw from the EU, significantly reducing any chance of future adoption. On 31 January 2020, the United Kingdom left the EU.
Despite never being a member of the eurozone, the euro is used in Akrotiri and Dhekelia and is widely accepted in Gibraltar and Northern Ireland. Furthermore, during its membership in the EU, London was home to the majority of the euro's clearing houses.[1]
The United Kingdom joined the European Exchange Rate Mechanism (ERM), a prerequisite for adopting the euro, in October 1990. The UK spent over £6 billion trying to keep its currency, the pound sterling, within the narrow limits prescribed by ERM, but was forced to exit the programme within two years after the pound sterling came under major pressure from currency speculators. The ensuing crash of 16 September 1992 was subsequently dubbed "Black Wednesday." During the negotiations of the Maastricht Treaty of 1992, the UK secured an opt-out from adopting the euro.[2]
The government of Prime Minister Tony Blair declared that "five economic tests" must be passed before the government could recommend the UK joining the euro and promised to hold a referendum on membership if those five economic tests were met. Her Majesty's Treasury first assessed five economic tests in October 1997, when it was decided that the UK economy was neither sufficiently converged with that of the rest of the EU, nor sufficiently flexible, to justify a recommendation of membership at that time. Another assessment was published on 9 June 2003 by Gordon Brown, when he was Chancellor of the Exchequer. Though maintaining the government's positive view on the euro, the report opposed membership because four out of the five tests were not passed. However, the 2003 document also noted the considerable progress of the UK towards satisfying the five tests since 1997, and the desirability of making policy decisions to adapt the UK economy to better satisfy the tests in future. It cited considerable long-term benefits to be gained from eventual, prudently conducted Economic and Monetary Union (EMU) membership.[3][4]
The UK would also have to meet the EU's economic convergence criteria (Maastricht criteria) before being allowed to adopt the euro; which at that time the UK's annual government deficit to the gross domestic product (GDP) was above the defined threshold. The government committed itself to a triple-approval procedure before joining the eurozone, involving approval by the Cabinet, Parliament, and the electorate in a referendum.
Rule out
Brown, Blair's successor, ruled out membership in 2007, saying that the decision not to join had been correct for Britain and for Europe.[5] In December 2008, José Barroso, the President of the European Commission, told French radio that some British politicians were considering the move because of the effects of the 2007–2008 financial crisis.[6][7] Brown denied that there was any change in official policy.[8] In February 2009, Monetary Policy Affairs Commissioner Joaquín Almunia said "the chance that the British pound sterling will join: high."[9]
The UK released new coin designs in 2008 following the Royal Mint's biggest redesign of the national currency since decimalisation in 1971. German news magazineDer Spiegel saw this as an indication that the country has no intention of switching to the euro within the foreseeable future.[10]
In the UK general election 2010, the Liberal Democrats increased their share of the vote, but lost seats. One of their aims was to see the UK rejoining ERM II and eventually joining the euro,[11] but when a coalition was formed between the Liberal Democrats and the Conservatives, the Liberal Democrats agreed that the UK would not join the euro during this term of government.
Withdrawal
Following the election of a majority-Conservatives government in the subsequent election, a referendum on EU membership itself was held, and the result was in favour of leaving the EU. Since the UK has withdrawn from the EU, euro adoption is practically impossible. Even if government and or public opinion were to change, the EU's position is that third countries would only adopt the euro through membership of the EU.[12]
Usage
The UK's Cypriot bases are the only part of the UK to officially use the euro
Akrotiri and Dhekelia
The Sovereign Base Areas of Akrotiri and Dhekelia on the island of Cyprus introduced the euro at the same time as the Republic of Cyprus, on 1 January 2008. Previously, they used the Cypriot Pound. Since the independence of Cyprus, treaties dictate that British territories in Cyprus will have the same currency as the Republic of Cyprus. These are the only places under British control where the euro is legal tender.[citation needed] They do not issue separate euro coins. Following the British vote to withdraw from the EU in June 2016, Ioannis Kasoulidis, Foreign Minister of Cyprus, announced that Cyprus wished to have EU citizen privileges remain for these areas if the UK ceases to be a member.[13]
London is home to three-quarters of all euro clearing in the world, to a value of €927 billion (2017 figure). The second largest hub is Paris, which operates 11% of clearing. In light of the UK's withdrawal from the EU, the EU is looking at whether these operations should be forced to move from London to within the EU so the activities could be regulated by the European Central Bank.[1] The European Union agreed to prolong until June 30, 2025 permission for Britain's clearing houses to continue serving customers in the EU but officials say that this will be the final extension.[15]
Exchange rate
In June 2003, Brown stated that the best exchange rate for the UK to join the euro would be around 73 pence per euro.[16] On 26 May 2003, the euro had reached 72.1 pence, a value not exceeded until 21 December 2007.[17] During the final months of 2008, the pound declined in value dramatically against the euro. The euro rose above 80 pence and peaked at 97.855 pence on 29 December 2008.[18] This compares with its value between March and October 2008, when the value of the euro was about 78 pence, and its value of about 70 pence between April 2003 and August 2007. With the impact of the 2007–2008 financial crisis on the British economy, including failing banks and plunging UK property values,[19] some British analysts stated that adopting the euro was far preferable to any other possible solutions for Britain's economic problems.[20] There was some media discussion about the possibility of adopting the euro. On 29 December 2008, the BBC reported that the euro had reached roughly 97.7 pence, due to poorer economic forecasts. This report stated that many analysts believed that parity with the euro was only a matter of time.[21]
At that time, some shops in Northern Ireland accepted the euro at parity, causing a large influx of shoppers from across the Irish border. This made some shops the most successful in their company for several weeks.[22][23]Alex Salmond, the then First Minister of Scotland, called for more Scottish businesses to accept the euro to encourage tourism from the eurozone, noting that this is already done by organisations such as Historic Scotland.[24]
During 2009, the value of the euro against the pound fluctuated between 96.1 pence on 2 January and 84.255 pence on 22 June. In 2010, the value of the euro against the pound fluctuated between 91.140 pence on 10 March and 81.040 pence on 29 June. On 31 December 2010, the euro closed at 86.075 pence.[25][26][27][28][29] A report in Britain's Daily Telegraph argued that the high euro had caused problems in the eurozone outside Germany.
There was a fairly steady decline in the euro rate during 2013, 2014 and 2015 from 85 pence to 70 pence. During 2016, the pound declined against several currencies, meaning the euro rose, especially on 24 June 2016 (because of the EU referendum) when the euro rose from 76 pence to 82 pence and further the following days.[30]
While the UK remained an EU member, its membership in the eurozone was only possible if it decided to drop its opt-out. Over the years, considerations on the impact of membership weighed heavily.
Economics
Some[who?] believed that removing the UK's ability to set its own interest rates would have detrimental effects on its economy. One argument was that currency flexibility is a vital tool and that the sharp devaluation of sterling in 2008 was just what Britain needed to rebalance its economy.[31] Another objection is that many continental European governments have large unfunded pension liabilities. Opponents feared that if Britain adopted the euro, these liabilities could put a debt burden on the British taxpayer,[32] though others have dismissed this argument as spurious.[33] One of the underlying issues that stand in the way of monetary union is the structural difference between the UK housing market and those of many continental European countries.[34]
The entry of the UK into the eurozone would have likely resulted in increased trade with the other members of the eurozone.[35] It could also have had a stabilising effect on the stock market prices in the UK.[36] A simulation of the entry in 1999 indicated that it would have had an overall positive, though small, long-term effect on the UK's GDP if the entry had been made with the rate of exchange of the pound to the euro at that time. With a lower rate of exchange, the entry would have had more clearly a positive effect on the UK's GDP.[37] A 2009 study about the effect of an entry in the coming years claimed that the effect would likely be positive, improving the stability for the UK economy.[38]
An interesting parallel can be seen in the 19th century discussions concerning the possibility of the UK joining the Latin Monetary Union.[39]
The wording of the question may have varied, but the figures showed that a majority of British people have been consistently against adopting the euro.
When France adopted the euro, so did the French overseas departments and territories that used the French franc. The CFP franc, the CFA franc, and the Comorian franc, that are used in overseas territories and some African countries, had fixed exchange rates with the French franc, but not at par – for various historical reasons they were worth considerably less, at 1 French franc = 18.2 CFP francs, 75 Comorian francs or 100 CFA francs. The CFA franc and the Comorian franc are linked to the euro at fixed rates with free convertibility maintained at the expense of the French Treasury. The CFP franc is linked to the euro at a fixed rate.
It was suggested that the sterling zone territories would, in the event of the UK adopting the euro, have four options:
Enter the eurozone as a non-EU member and issue a distinct national variant of the euro—just as Monaco and Vatican City have done. The EU has only allowed sovereign states to adopt this approach to date. Also, it has demanded that monetary agreements be entered into by non-EU members who wish to issue their own euro coinage, and prevented Andorra from issuing their own coins until the agreement was signed. Such agreements, the EU has stated, must include adherence to EU banking and finance regulation.
Use standard euro coins issued by the UK and other eurozone countries. This may be perceived by some as losing an important symbol of independence.
Maintain their existing currency, but peg at a fixed rate with the euro. Maintaining a fixed rate against currency speculators can be extremely expensive, as the UK found on Black Wednesday.
Gibraltar was in a different position, being within the EU as part of the UK's membership. If the UK were to have adopted the euro it might not have been possible to implement an opt-out for Gibraltar or whether it would have had a separate referendum.
It was the Manx Government's position that, if the United Kingdom had decided to participate in the euro, then it would be likely that the Isle of Man (which has its own currency, the Manx pound) would also choose to participate. Tynwald passed the Currency Act 1992[citation needed] as part of preparations for the event that the UK decided to adopt the euro. In such a scenario, the Isle of Man wished to retain the right to issue its own currency, believing it to be an important public statement of independence. Retaining the island's own coinage also enables the Isle of Man Treasury to continue to benefit from the accrual of interest on the issued money (seigniorage). The Currency Act allows for the issue of a Manx euro currency at parity with the euro, referred to as a "substitute euro", which has an Isle of Man inscription on the obverse side of the coins. This proposal would essentially have replaced the "substitute sterling" with a "substitute euro", as they would have functioned in the same way. Manx versions of the euro coins and euro banknotes were designed.[51] While the European Union is not obliged to accept the Manx desire to introduce a special Manx version of the euro, the Isle of Man could arguably introduce a currency pegged to the euro (akin to its situation now vis-à-vis the pound sterling, or the relationship between the euro and the Bulgarian lev). There is no precedent for divergent national versions, beyond customising the national side of euro coins in the same way as other eurozone members.
In November 1999, in preparation for the introduction of the euro notes and coins across the eurozone, the European Central Bank announced a total ban on the issuing of banknotes by entities that were not national central Banks ("Legal Protection of Banknotes in the European Union Member States"). A move from sterling to the euro would have ended the circulation of sub-national banknotes as all euro banknotes of a given denomination have an identical design. However, as national variation is a requisite of euro coins, it would have remained an option for the Royal Mint to incorporate the symbols of the Home Nations into its designs for the British national sides of euro coinage.
Convergence criteria
Aside from approval in a domestic referendum,[citation needed] the UK would be required to meet the euro convergence criteria before being granted approval to adopt the euro. As of the last report by the European Central Bank in May 2018, the UK met 1 of 5 of the criteria.
Criterion potentially fulfilled: If the budget deficit exceeds the 3% limit, but is "close" to this value (the European Commission has deemed 3.5% to be close by in the past),[76] then the criteria can still potentially be fulfilled if either the deficits in the previous two years are significantly declining towards the 3% limit, or if the excessive deficit is the result of exceptional circumstances which are temporary in nature (i.e. one-off expenditures triggered by a significant economic downturn, or by the implementation of economic reforms that are expected to deliver a significant positive impact on the government's future fiscal budgets). However, even if such "special circumstances" are found to exist, additional criteria must also be met to comply with the fiscal budget criterion.[77][78] Additionally, if the debt-to-GDP ratio exceeds 60% but is "sufficiently diminishing and approaching the reference value at a satisfactory pace" it can be deemed to be in compliance.[78]
Criterion not fulfilled
Notes
^The rate of increase of the 12-month average HICP over the prior 12-month average must be no more than 1.5% larger than the unweighted arithmetic average of the similar HICP inflation rates in the 3 EU member states with the lowest HICP inflation. If any of these 3 states have a HICP rate significantly below the similarly averaged HICP rate for the eurozone (which according to ECB practice means more than 2% below), and if this low HICP rate has been primarily caused by exceptional circumstances (i.e. severe wage cuts or a strong recession), then such a state is not included in the calculation of the reference value and is replaced by the EU state with the fourth lowest HICP rate.
^The arithmetic average of the annual yield of 10-year government bonds as of the end of the past 12 months must be no more than 2.0% larger than the unweighted arithmetic average of the bond yields in the 3 EU member states with the lowest HICP inflation. If any of these states have bond yields which are significantly larger than the similarly averaged yield for the eurozone (which according to previous ECB reports means more than 2% above) and at the same time does not have complete funding access to financial markets (which is the case for as long as a government receives bailout funds), then such a state is not to be included in the calculation of the reference value.
^The change in the annual average exchange rate against the euro.
^Reference values from the ECB convergence report of May 2012.[61]
^Sweden, Ireland and Slovenia were the reference states.[61]
^ abcdeThe maximum allowed change in rate is ± 2.25% for Denmark.
^Sweden and Slovenia were the reference states, with Ireland excluded as an outlier.[61]
^Reference values from the ECB convergence report of June 2013.[64]
^ abSweden, Latvia and Ireland were the reference states.[64]
^Reference values from the ECB convergence report of June 2014.[67]
^Latvia, Portugal and Ireland were the reference states, with Greece, Bulgaria and Cyprus excluded as outliers.[67]
^Latvia, Ireland and Portugal were the reference states.[67]
^Reference values from the ECB convergence report of June 2016.[70]
^Bulgaria, Slovenia and Spain were the reference states, with Cyprus and Romania excluded as outliers.[70]
^Slovenia, Spain and Bulgaria were the reference states.[70]
^Reference values from the ECB convergence report of May 2018.[73]
^Cyprus, Ireland and Finland were the reference states.[73]
^Cyprus, Ireland and Finland were the reference states.[73]
^MacLennan, D., Muellbauer, J. and Stephens, M. (1998), 'Asymmetries in housing and financial market institutions and EMU', Oxford Review of Economic Policy, 14/3, pp. 54–80
^"Exchange rate uncertainty, UK trade and the euro". Applied Financial Economics. 2004.
^DiCecio, Riccardo; Nelson, Edward (2009). "Euro Membership as a U.K. Monetary Policy Option: Results from a Structural Model". SSRN1391841. NBER Working Paper No. w14894.
American combat expert (1914–1998) Rex ApplegateBornRex Applegate(1914-06-21)June 21, 1914Yoncalla, Oregon, United StatesDiedJuly 14, 1998(1998-07-14) (aged 84)San Diego, California, United StatesOccupationAuthor and journalistNationalityAmericanPeriod1943–1998GenreCombativesSpouseEdith, CaroleChildrenShannon Applegate (daughter), Rex Applegate (son), Lisha Allen (daughter) Rex Applegate (June 21, 1914 – July 14, 1998) was an American military officer who worked for the Office of Stra…
Son tornate a fiorire le roseUna scena con Leopoldo Trieste, Valentina Cortese, Luciano Salce e Roberto ChevalierLingua originaleitaliano Paese di produzioneItalia Anno1975 Durata105 min Generecommedia RegiaVittorio Sindoni SoggettoGhigo De Chiara, Vittorio Sindoni SceneggiaturaGhigo De Chiara, Vittorio Sindoni ProduttoreLuciano Giotti Casa di produzioneMegavision, S.E.P.A.C. FotografiaSafai Teherani MontaggioMariano Faggiani MusicheEnrico Simonetti ScenografiaGiorgio Luppi CostumiAdriana Bersel…
Cet article est une ébauche concernant la Bretagne et un saint catholique. Vous pouvez partager vos connaissances en l’améliorant (comment ?) selon les recommandations des projets correspondants. Ronan Statue de Saint Ronan en l'église Saint-Ronan de Locronan. Saint, évêque, ermite Naissance VIe siècleIrlande Décès VIe siècle Saint-Brieuc (Armorique) Autres noms Renan Fête 1er juin modifier Saint Ronan est un saint breton qui fait partie des saints plus ou …
Wilayah Ibukota Islamabad اسلام آبادDistrik federalJulukan: Isloo,[1] The Green City (Kota Hijau)Letak Wilayah Ibukota Islamabad di PakistanKoordinat: 33°41′N 73°05′E / 33.683°N 73.083°E / 33.683; 73.083Koordinat: 33°41′N 73°05′E / 33.683°N 73.083°E / 33.683; 73.083NegaraPakistan IbukotaIslamabadPemerintahan • Pemerintah KotaPemerintah Wilayah Ibukota Islamabad (PWII) • Kepala KomisarisZ…
Beings in mythology, folklore and fiction Lizardman redirects here. For other uses, see Lizardman (disambiguation). This article's lead section may be too short to adequately summarize the key points. Please consider expanding the lead to provide an accessible overview of all important aspects of the article. (December 2021) Reptilian humanoids, or anthropomorphic reptiles, are fictional creatures that appear in folklore, fiction, and conspiracy theories. In folklore Two Nāga heads carved into …
American ventriloquist and actor (1922–2005) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: Paul Winchell – news · newspapers · books · scholar · JSTOR (September 2014) (Learn how and when to remove this template message) Paul WinchellWinchell in 1951BornPaul Wilchinsky(1922-12-21)December 21, 1922New York C…
Borough in Estonia Small borough in Jõgeva County, EstoniaAvinurmeSmall boroughAvinurme churchCoordinates: 58°59′07″N 26°51′45″E / 58.98528°N 26.86250°E / 58.98528; 26.86250Country EstoniaCountyJõgeva CountyParishMustvee ParishTime zoneUTC+2 (EET) • Summer (DST)UTC+3 (EEST) Avinurme is a small borough (alevik) in Mustvee Parish Jõgeva County northeastern Estonia.[1] It was the administrative centre of Avinurme Parish. Singer Dagmar …
Former railway station in England CrossensGeneral informationLocationCrossens, SeftonEnglandCoordinates53°39′59″N 2°57′04″W / 53.666434°N 2.951245°W / 53.666434; -2.951245Grid referenceSD37241930Platforms2[1]Other informationStatusDisusedHistoryOriginal companyWest Lancashire RailwayPre-groupingLancashire and Yorkshire RailwayLondon and North Western RailwayPost-groupingLondon, Midland and Scottish RailwayKey dates20 February 1878 (1878-…
Association football club in England Football clubA.F.C. TottonFull nameAmalgamated Football Club TottonNickname(s)The StagsFounded1886GroundTestwood Stadium, TottonCapacity3,000 (500 seated)[1]ChairmanStephen SnowManagerJimmy BallLeagueSouthern League Premier Division South2023–24Southern League Premier Division South, 2nd of 22 Home colours Away colours Third colours Amalgamated Football Club Totton is a football club based in Totton, Hampshire, England. The club is affiliated to the…
Vehicle propelled by a reaction gas engine For other uses, see Rocket (disambiguation). A Soyuz-FG rocket launches from Gagarin's Start (Site 1/5), Baikonur Cosmodrome A rocket (from Italian: rocchetto, lit. 'bobbin/spool')[nb 1][1] is a vehicle that uses jet propulsion to accelerate without using the surrounding air. A rocket engine produces thrust by reaction to exhaust expelled at high speed.[2] Rocket engines work entirely from propellant carried within …
Fictional character in the Star Trek media franchise This article is about the Star Trek character. For the pediatrician, see Benjamin Spock. For other uses, see Spock (disambiguation). Fictional character SpockStar Trek characterLeonard Nimoy as Spock, holding a parabolic antenna, in a publicity photograph for Star Trek: The Original SeriesFirst appearanceThe Man Trap (1966)(The Original Series)Created byGene RoddenberryPortrayed by Leonard Nimoy (1966–2013) Zachary Quinto (2009–2016) Ethan…
American TV series or program The Ambiguously Gay DuoThe Ambiguously Gay Duo title cardGenreAnimationCreated byRobert SmigelJ. J. SedelmaierVoices ofStephen ColbertSteve CarellRobert SmigelNarrated byBill ChottCountry of originUnited StatesOriginal languageEnglishNo. of episodes12ProductionProducersRobert SmigelJ.J. SedelmaierTanya RynoSamantha ScharffRunning time3 minutesProduction companiesJ.J. Sedelmaier Productions, Inc.Original releaseNetworkABC (1996)NBC (1996–2011) The Ambiguously Gay D…
البريقThe Shining (بالإنجليزية) الشعارملصق الفيلممعلومات عامةالصنف الفني القائمة ... فيلم رعب[1][2][3] — رعب نفسي — فيلم دراما — فيلم مقتبس من رواية — فيلم غموض — فيلم أشباح — دراما خوارق[4] المواضيع ما وراء الطبيعة — كحولية — فيلم رعب تاريخ الصدور القائمة ... …
Questa voce o sezione sull'argomento centri abitati della Campania non cita le fonti necessarie o quelle presenti sono insufficienti. Puoi migliorare questa voce aggiungendo citazioni da fonti attendibili secondo le linee guida sull'uso delle fonti. Cervinaracomune Cervinara – VedutaLa villa comunale LocalizzazioneStato Italia Regione Campania Provincia Avellino AmministrazioneSindacoCaterina Lengua (lista civica Cervinara sempre) dal 22-9-2020 TerritorioCoordinat…
Subaru TribecaInformasiProdusenSubaruJuga disebutSubaru B9 TribecaMasa produksi2005–sekarangPerakitanLafayette, Indiana, Amerika SerikatBodi & rangkaKelascrossover SUV ukuran sedangBentuk kerangkaSUV 5-pintu Subaru Tribeca adalah mobil SUV kelas atas yang dibuat oleh Subaru dari Fuji Heavy Industries (FHI). Berbasis pada mobil konsep Subaru B9X, versi produksi-nya pertama kali dibuat pada tahun 2005, dan disebut B9 Tribeca yang namanya berasal dari TriBeCa, sebuah kawasan di kota…
Prime Minister of Greece intermittently between 1955–80, President from 1980–85, 1990–95 This article is about the former Greek president who lived from 1907 to 1998. For his nephew, see Kostas Karamanlis. Konstantinos KaramanlisΚωσταντίνος ΚαραμανλήςKaramanlis in 1978President of GreeceIn office5 May 1990 – 10 March 1995Prime MinisterKonstantinos MitsotakisAndreas PapandreouPreceded byChristos SartzetakisSucceeded byKonstantinos StephanopoulosIn office10 Ma…
Part of a series on theMilitary of ancient Rome 753 BC – AD 476 Structural history Army Unit types and ranks Decorations and punishments Legions Auxilia Generals Navy Fleets Admirals Campaign history Wars and battles Technological history Military engineering Castra Siege engines Triumphal arches Roads Political history Strategy and tactics Infantry tactics Frontiers and fortifications Limes Walls Limes Britannicus Antonine Wall Hadrian's Wall Saxon Shore Limes Germanicus Alb Limes Laute…
Japanese intelligence agency Public Security Intelligence Agency公安調査庁Kōanchōsa-chōAgency overviewFormedJuly 21, 1952; 71 years ago (1952-07-21)Preceding agenciesInvestigation Bureau (IB), Home Ministry (1946)[1]Internal Affairs Bureau (IAB), 2nd Office (1948)[1]Special Investigation Board (SIB), Attorney General's Office (1948-1949)[4][5]JurisdictionGovernment of JapanHeadquartersChiyoda, Tokyo, JapanEmployees+/- 1,740 officers (As o…
