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Why the United Kingdom ‘’Opted Out’’ of the Emu

In: Business and Management

Submitted By freddy
Words 3011
Pages 13
Briefly outline the reasons why the United Kingdom ‘’opted out’’ of the European Monetary and Economic Union (EMU). In retrospect, was this a good decision for British business?

The European Monetary and Economic Union

A giant step in the history of a unified Europe has been the creation of the European Economic and Monetary Union (EMU). Coordination of national economic policies is anticipated to be fair to all EU member states in terms of them all sharing a single market and being part of the EU trading block. As stated on the official website of the EU , ‘’coordinated policies reinforce the EU’s unique mix of market dynamism, social cohesion and environmental responsibility to deliver more growth and jobs’’. Launched at the Hanover Summit in June 1988, chaired by the President of the European Commission, Jacques Delors, the EMU has started off as an encouragement of practical and realistic way of achieving an even more united Europe with a single currency as one of its main targets. In the rather positive view of the European Union, the EMU is said to mutually reinforce the national policies of member countries resulting in ‘’more growth, more jobs and a higher level of social welfare for all’’ (Europa, 2008). However, several countries have chosen to opt out of the EMU, notably the United Kingdom of which is going to be the key note of this essay. It is important to look into the reasons for which the UK has decided to opt out of the EMU and evaluate the results of that decision.

Why do European countries choose to join the EMU?

A question that must be asked is what are the political and economic factors behind the positions taken by different countries with respect to EMU? ‘’Main motivation behind EMU is political… monetary union is seen as highly desirable by those who want Europe to become more closely integrated politically’’...

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