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Friday, January 06, 2006

Comments

Edward Hugh

"It is a little curious that the UK should be bound by the Growth and Stability Pact"

I agree. I think this is essentially a grey area left-over from the days when the UK was thinking of EMU convergence. Basically, opting out of the GSP would make explicit what is already implicit: the UK won't be joining the euro. Politically it is not expedient to do this at present, so the show goes on.

But really questioning Britain's right to set its own fiscal and monetary policy at a time when the Spanish economy is more or less out of control due to its lack of monetary and currency autonomy has to be a sick joke. Ditto the Italian public debt.

In sum: this declaration should be given short shift.

hirvi

Indeed, Edward.

Interestingly, Sir Christopher Meyer writes in his "DC Confidential" book that Britain didn't join the euro because there was no pressure from US investors to do so, but if there had been, sterling would have been replaced "faster than you could say Gordon Brown".

But he's being mischievous, isn't he?

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