COMMENT:Second thoughts on a single currency
Friday 24 March 1995
For the banks, there has been dawning horror at the realisation of how costly the process of transition to a single currency will be. This will be particularly onerous if, as the Governor of the Bank of England suggested, national currencies survived in parallel to the new single currency for a while.
Even without the nightmare of two sets of notes and coins, the banks will bear a big burden of adjustment. If nothing else, monetary union would probably give a huge stimulus to banking technology aimed at further reducing the use of cash.
Non-financial businesses have so far, on average, been neutral to positive about a single European currency. Although smaller businesses are more hostile, the bigger firms surveyed by the CBI last autumn gave monetary union a cautious vote of approval.
Their answers might well be different now. There is still confusion about the details, but the broad economic costs are beginning to be better understood. Mr George spelt them out: less freedom to adjust to shocks that hit the economy, the risk of permanently high unemployment in peripheral countries, the possible need for a bigger European budget to allow fiscal transfers between countries.
So the early enthusiasm for EMU among the business community has begun to fade. The strongest impulse in favouris the fear of being left out and later joining something we had no part in shaping. A repeat of the Common Market saga, in other words.
- 1 Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
- 3 Israel-Gaza conflict: The myth of Hamas’s human shields
- 5 Dutch paedophile club to fight their ban at the European Court of Human Rights
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...
£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...