UK and Euro: Shall the country addopt single currency?

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Abstract

The world today is very competitive in all arenas of human beings dimensions . These dimensions which are political , social and economical are so dynamic and need to be updated inaccordance with the level of competitiveness in the society . In this sense , originates the many business acquisitions and mergers seen in the corporate scene today . In matters that relates to countries there are emergence and formation of economic blocks

Therefore this economic integration has been dominant in the current world . But

the question is to be addressed is the viability and sustainability . Hence in all EMUs the core issue is usually the single currency adoption . Therefore in this dissertation shall examine the viability of UK abolishing its sterling pound in favour of euro

Introduction

In economic environment EMU (Economic and Monetary Union ) usually refers to the process whereby countries or members of an integrated economic block , abandons and abolishing their currency and economical transaction policies to adopt a single currency and common economical policies (Seaton 2002 . In this connection EMU applies in the sense that , member countries of the European Union community abolishes and abandons their individual currencies and adopts euro as their single currency for their all economical transactions (Seaton 2002

Therefore in this connection , the European nations once they adapt euro as their single currency it shall be controlled European Central Bank Which is based at Frankfurt and national 's central banks will serve as administrative agents for the European Central Bank . Thus in this regard , the process of adapting the euro as a single currency is irrevocable since is contained in the treaty signed by member countries (Leeming 2003 . Bearing this in this argument , the fundamental issue is only to consider and evaluate the viability and sustainability of nation 's economy once it abolishes its own national currency in favour for euro . In to examine the nation 's economical sustainability once it adapts euro as its currency there are a number of factors and determinants to look at firs . Without examining those determinants then the sustainability of the EMU shall be in anarchy and likely to fall a part

This is because the economical integration is not based on the political union . Hence this calls for the thorough assessment for the entire benefits of euro to an individual nation . In fact in the EMU of European Union there is no sound (Leeming 2003 ) good and substantial economical based reason for the integration and introduction of single currency But rather the whole European community ideologies are based upon primarily political objectives and reasons . This is in the sense that through forming a merger of European countries , it shall result to a political super state which has been the political elites of the Europe since the end of the First and Second World War eras (Benson 2006

In contrast United Kingdom has tried to hide this objective that it was meant for economic based goals . Hence the big question today is whether the...