Arab Today, arab today uk happy to have stayed out of the euro
Last Updated : GMT 03:52:17
Arab Today, arab today
Arab Today, arab today

UK happy to have stayed out of the euro

Arab Today, arab today

Arab Today, arab today UK happy to have stayed out of the euro

London - Arabstoday

A decade after the euro came into circulation, the British are more hostile than ever towards a currency that faces a battle for survival, and cannot hide their satisfaction at holding on to the pound. Yet such sentiment masks the fact that while the eurozone is struggling, the British economy is not exactly booming either. According to a poll in the wake of Prime Minister David Cameron’s veto at a crunch European Union summit, 65 percent of Britons said they believe the euro is doomed and only one in five respondents thought it would survive.The Sunday Times newspaper caught the mood with its headline: ‘It’s bad, but at least we’re outside the eurozone.’Anyone who hates Europe and the euro ‘can boast in the pub that they were right all along,’ it said.Despite the hostility to the euro, the tangible benefits of Britain’s decision to stay out of the single European currency appear to be limited.Figures from the European Commission show that Britain’s public deficit in 2011 will be greater than that of Greece and its debt will be roughly equal to that of France, despite an unprecedented set of painful austerity measures. Meanwhile, unemployment is at a 17-year high and inflation is twice the rate of the eurozone.Essentially, Britain is still paying the bill for the financial crisis of 2008 which caused deep damage to its banking and financial services sectors, in which it is the leading nation in Europe.Financial services were the reason given by Cameron for dramatically using the veto on a revamped EU treaty because he fears new regulations from the bloc would restrict the City of London’s room to manoeuvre.However, Britain does have a distinct advantage compared to its euro-using neighbours — an autonomous central bank.Over the past three years, the Bank of England (BoE) has pumped the equivalent of £275 billion (330 billion euros, $430 billion) into the economy and bought large quantities of gilts, in contrast to the European Central Bank.As a result, rates of return on British 10-year sovereign bonds are now near those on German bonds, meaning Britain is able to borrow on more favourable terms than most of its fellow EU nations.However the injections of liquidity by the BoE have also contributed to the relative weakness of the pound, which currently buys around 1.15 euros, a mighty fall from its peak of 1.75 euros in May 2000.That exchange rate helps to sell British products abroad, but Britain still imports far more than it exports. The pound is failing to benefit from the euro’s problems because interest rates in Britain stand at a record low 0.5 percent, deterring foreign investors.Joshua Raymond, an analyst from City Index, said that ‘had Britain joined the euro, it (Britain) would have been vastly worse off today.‘The downside potential from being dragged into the sovereign debt [crisis] directly, as opposed to the current indirect picture ... negates any positives from a previous adoption of the single currency’, such as greater trade ties.Colin Ellis, of BVCA, an industry body for the private equity and venture capital sectors in Britain, told AFP that ‘stuck inside the euro, the Bank of England would not have been able to buy up such a substantial share of UK government debt.’ Stephen Gallo, of Schneider Foreign Exchange, said Britain’s EU partners who are grumbling about its refusal to adopt the currency should actually ask themselves ‘how much worse it would be for the euro if Britain were in it’. 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today uk happy to have stayed out of the euro Arab Today, arab today uk happy to have stayed out of the euro

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday