Rocker – the UK economy is just about surviving because the Bank of England is buying all it’s debt (bonds) through Quantitive Easing, while the government is trying (and failing) to cut the deficit. If the UK joined the euro the ECB would refuse to buy UK debt, so quantitive easing would stop. UK gilt yields would go through the roof, and the UK would require a bailout and pull the rest of the eurozone economy down. As I’m tired of saying on here – what do you think would have happened to the UK economy had it adopted the euro in 2002? During the credit boom interest rates in the UK would have been half of what they were and the credit boom (and bust) twice as big.
I find it incredible that people refuse to see what’s going on and adopt this “la la la I’m not listening … everything will be OK” attitude when all the evidence suggests otherwise. Don’t get me wrong – I’d love to hear a robust argument for why the euro will benefit countries that adopt it, but nobody has provided one. Even Heseltine’s pro-euro ally John Major recently admitted that he was wrong.