Contemporary issue in the Economic and Political Environment of the UK Essay

Contemporary issue in the Economic and Political Environment of the UK Britain and the Euro Should we join or not - Essay Example And now I will try to give you an accurate account of the economic situation in the United Kingdom. (Minford) Chancellor of the Exchequer of the UK thinks that the country is not ready to join the European currency. Tony Bluer is of the some opinion. He is known to be a supporter of the European fusion, but he has not made the official statement yet. But still the decision has not been taken. (Minford) Observers say that Chancellor of the Exchequer isn't eager to introduce the country into the European zone. Prime Minister and the whole Labour party like the idea of the economical reunion with the continental Europe. There are some reasons for it. Firstly, Britain wants to be the leader of the EU, and for it the country should have the same currency as the whole organization has. (Marsday) Secondly, there is a probability of split between the members of the Labour party. And it is not profitable for the Prime Minister. Thirdly, the Conservative party can use antagonisms among the Labour party leaders which exist. From the economic point of view it is profitable for Britain to join the Euro. But the most suitable moment for it is when the Pound will be a bit closer to the Euro. In such a way the economy of the country will not feel a big strike. Otherwise, there will be a recession of the economy. But still, the nation won't feel it, because of the high development of the social pr ogram in the country. But the competing the Conservative party is strongly against it. They lost the trust of people, because of being against joining Britain the EU. Their most influential argument is the historical currency of the country. (Marsday) Their motto is: Let's preserve the Pound. Almost half of the country supports this idea. (Minford) The Conservative Party says that people must decide whether to change the national currency or not. A national referendum must show what to do with the problem which exists. The leader of the Party is sure that the country can successfully do without the Euro. He says that British people do not want to join the Euro. People know that it is a political decision, and the economic policy is not related to it. He adds that Tony Bluer just wants to choose the suitable moment and win the referendum. The Head of the Chamber of the Commerce, David Frost, says that the Government will decide whether to join the Euro or not, but later. However the Government should denote their actions for investors to know what to do with their capital formations and what to do next. The striking example of it is the Japanese corporation Toyota. It is one of the biggest foreign investors in Britain. (Marsday) At first, Toyota and almost all the other Japanese companies wanted Britain to introduce a new European currency. They were alarmed what would be with their investment. (Minford) However, now the Head of the Japanese corporation says that Toyota has a stable position in the country, and is not going to enlarge their capital investment. The corporation is not troubled