Should Britain Adopt the Euro as its Currency?

December 13, 2008

When the EU countries changed to a single currency at the beginning of the century, Britain opted out, keeping the pound. It was understood at the time that this would probably be only temporary, and that the situation would be under frequent review. Events have prevented the government from having much time to look at the question again.

When any country now applies to join the EU, they have to commit to changing to the single currency as soon as they meet the convergence criteria.

Given the fact that the euro is now the world’s strongest currency, looking likely to replace the dollar as the first choice reserve currency, and given the continued poor performance of sterling against the euro, is it now perhaps time for Britain to make the change?