« India's airport debacle | Main | Europe's leaders look to the 'Swedish model' »

Friday, January 06, 2006


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.


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?

The comments to this entry are closed.


  • TEST

  • Subscribe in NewsGator Online

Economist Weblogs



  • This is a personal web site, produced in my own time and solely reflecting my personal opinions. Statements on this site do not represent the views or policies of my employer, past or present, or any other organisation with which I may be affiliated. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.