Monday, 17 November 2008
Britain & The Euro
I've been arguing here for a while, and in my Bloomberg column, that the recession would re-open the case for Britain joining the euros. Wolfgang Munchau has a well argued piece in the FT today making precisely that case. Yesterday Will Hutton was making the argument in the Observer. I suspect this is going to grow. Sterling is in real trouble, and so will the British economy be in due course. The euro is going to be an obvious escape route. The problem will be that Gordon Brown will have spent so much money, and the accounting will be so dodgy, we probably won't qaulify. They let the Greeks in by fiddling the numbers. But I suspect the ECB won't want to take on responsibility for the catastrophic mess Brown in creating.