Nicholas Craig
Jun 17 2005 By Nicholas Craig, The Journal
Europe dominates the news, focusing on our strained relations with France and Germany.
Their commentators currently castigate us as a country of cruel capitalism.
Ratification of the European constitution is at the heart of the rift. The constitution is not understood well by most Britons.
To my mind, we have not yet decided whether or not the euro is a good thing, let alone considered the subtleties of a constitution.
We live in a country which knows little about the benefits (or otherwise) of being in the EU, which is attracted to the idea of European co-operation in principle, but still needs convincing about such key questions as whether or not Britain should remain a member state.
The introduction of the euro throws all of these into sharp relief.
Most people say "No" to the euro in surveys. We should not underestimate the `fatalistic' argument, however, that people expect the euro to come, whether they like it or not. So, even though they may be opposed at the moment, it is something that is likely to happen.
Yet it would be wrong to write off the feeling British people undoubtedly have - that adopting the euro could somehow turn out to be against British interests.
The £ is a marvellous currency. It has character and the Bank of England behind it. It's something we know and love. The fact that the pound is still going it alone hasn't detracted from the strength of the City of London.
Far from it.
The Americans and the Europeans may have taken over the City, but seem perfectly happy to conduct their operations in sterling. Nobody is crying out for the euro.
The problem about continuing to stick with the £ is that it is now the currency of a small island from Land's End to John O'Groats. So how viable is the £ in the long term?
As a country we are making far fewer things than we buy. It's a trend that looks set to continue.
If we put the £ into the euro the British balance of payments disappears, because we then contribute to the euro balance of payments.
Furthermore, our conversion to the euro would shift "old Europe's" perception of the UK's cruel capitalism. But I bet you a £ to a penny that public opinion will remain opposed to losing the £, even after we have euro coins in our pockets.
