Can the � ever recover?

[kwicky]

The � has dropped to its lowest value against the Euro. This year with an unprecedented balance of payments, the housing market in decline and a poor outlook for the economy. Should we have joined the Euro much earlier or is it too late to join?

http://news.bbc.co.uk/1/hi/business/7182951.st m

[Kingsway]

It's much too late to join, thank heaven.

[legend758duo]

its now at 1 pound to 1 euro 28 .4 cents btw

[kwicky]

Only today Britain has slipped to 5 in the world's richest nations. They were originally 4th. Who has replaced them? France!! Why? Because the � has slipped drastically against the Euro.

[Twenty20]

But does it really affect you, in everyday life? I must admit I don't go around worrying about the level of the Pound against the Euro, Dollar or any other currency.

[fredpuli47]

On the other hand, the 'income per head of population' is now higher in Britain than in the USA. That's for the first time in a hundred years.And it's largely because the dollar is so low against the pound.Of course, the cost of living there may be less than in Britain e.g property prices may be less.They might argue that they have a lower tax burden than we do. Well, yes, but that ignores the fact that our taxes pay for services that they have to pay for. We don't have to pay for health insurance or go without healthcare, for one thing.

[Cakeboy]

2020 - whilst you may not worry about the exchange rate of the pound vs various currencies, it does affect you all the time.

Any products that you buy that are sourced from abroad, a lot of white goods, most food stuffs, etc etc will cost you more or less depending on the exchange rate.

If a supplier is having to buy something from the US it will be cheaper at the moment as the dollar is weaker against the pound than it has been for a while. If the dollar strengthens then the supplier is going to have to pay more and will pass the costs on. A very simplified example as there are many more market forces at work than just the exchange rate.

As to the original question, I think we will join the Euro before the Labour govt leaves power, Brown is better than Blair for being a Europhile, but not by a huge amount. My guess is that there will be no referendum on the issue and it will be forced through within the next couple of years. Personally, I don't really care - it'll just mean people have to do a lot of calculations to work out if something is worth it or not still. As long as companies don't use any confusion to ramp up their prices, then it doesn't bother me - it will increase our competitiveness in the European Market and make prices less vulnerable to fluctuation.

[Loosehead]

It's a currency fluctuation, they happen. I noticed the silence was deafening when the Euro first floatred at 141 took eight years to reach that against the � again! Currency movements either way have winners and losers, British goods are now cheaper in the EURO zone, Euro zone imports are more expensive. Just the natural order of things. Do you think the pound will continue to decline against the Euro?

[jake-the-peg]

Exactly !

A weak pound is good news for exporters - speaking as someone who works for a US company I wish the pound were weaker against the dollar too!

I really can't see us joining the Euro in the near future though whether or not Gordon would like us to there's simply no imperative for doing so and politically speaking it would be suicide

[kwicky]

There have been so many cases of financial incompetence in this country over the past two decades, both by Labour and Conservative, I really wonder what the future holds. Cheaper goods made here may help our exports but the 'made in Britain' label is now almost defunct and we rely heavily on imports even for daily use. The pound in your pocket will certainly we worth less!