Richard Corbett, Deputy Leader of the Labour MEPs, has launched a pamphlet arguing that it is time to re-open the debate in Britain on eventual euro membership, asking whether "staying out could mean missing out".
The paper which coincides - with the 10th anniversary of the launch of the currency - is entitled 'Re-opening the debate: could staying out mean losing out? ', and concludes that Britain's long term economic future would be enhanced by joining the single currency.
Richard said:
"The 10th anniversary of the euro is a perfect opportunity to take stock of its progress and to re-open the debate on whether Britain's long-term economic future lies with euro membership. The evidence suggests that it does.
"The euro is now a truly global currency. It is the world's second largest reserve currency and accounts for a greater proportion of the global financial pie than the dollar. Other countries with small and medium sized currencies, Britain included, have been increasingly squeezed between these two currency giants.
"The current economic crisis would have been compounded by turmoil on the currency markets had we still had the Spanish peseta, the Italian lira, the Greek drachma, the French franc and so on as separate currencies fluctuating wildly against each other. The euro has been a rock of stability for these and other countries, as best illustrated by the contrasting fortunes of Iceland and Ireland.
"The Eurozone has had its difficulties, and a careful balance sheet must be drawn up. Of course, Britain can manage in the short run outside the euro. But in the long run we stand to lose out in at least two ways if we don't join: our businesses are handicapped in the European market by conversion costs and hedging costs that their competitors in that market do not face; and inward investors into the European market will prefer to be in the major currency area rather than the minor one."
Commenting on whether Britain should join the euro in the near future, Richard said:
"Joining the single currency would be a major step, both politically and economically, and is not something that we should rush into. However, at a time when Sweden, Denmark and even Iceland are publicly reconsidering their position outside the Eurozone it would be self-defeating and short-sighted for Britain not to do the same."
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