QUOTE
one excellent reason for staying out of the Euro is the current strength of the UK economy compared to that of it's neighbours.
Better to join from a position of relative strength, no ?
I'm not convinced that comparing economies on a country by country basis provides a reliable snapshot. Country - by - country is only one of various, ultimately arbitrary, ways of making comparisons between the relative strengths and weaknesses of different economies.
For example, not all regions of the UK share similar economic conditions. Parts of the UK probably have more in common with the poorer parts of the Euro - Zone, for example. The logical conclusion of the keep - Sterling argument, IMO, is that different regions and cities, within say the UK (and the islands), should have different interest rates. Effectively abolishing Sterling and introducing different currencies in Aberdeen, Liverpool, Plymouth, Ramsey etc.
Maybe we should be comparing regions and cities throughout the EU when we look at averages. Or perhaps looking at the relative strengths and weaknesses of different areas of business within geographical regions.
I don't believe that joining (or not) the Euro should be about anything other than our ultimate inevitable destination. Timing would be a different matter. My belief is that Sterling
will certainly cease to exist and we should be planning for how that happens. The Euro isn't going to be abolished. Its long term stability comes from its existence as a viable alternative to the US$ - in terms of the amount of business which it represents. (And the current strength of Sterling vs the US$, for example, is exactly because the US$ is weak compared to the Euro. It has very little to do with any relative strength in the UK economy - as if
the UK economy was really one thing). US$ weakness affects anyone trying to do business in the US. However, the greater part of UK export trade is with EU partner countries (our neighbours) and with people dealing in Euros. Which is a good reason for adopting the Euro, IMO.
But I'm prepared to be corrected.