The same people, by the way, who have spent the last ten years predicting that the Euro would collapse as a currency.
Let’s get a few facts straight.
They say that we have no control over our interest rates. That’s true. What they never tell you is that we never have. Pre-1979, before we joined the EMS, we were linked, pound for punt, to Sterling. Our interest rates were set in the Bank of England, where, unlike the European Central Bank, we had no representation.
Not that such a thing would bother this crowd. For all their finger pointing at Brussels and Frankfurt and roaring about national sovreignty, they transform into forelock tugging lickspittles getting moist at the thought of us under the rule of the Bank of England.
Don’t get me started on their Sinn Fein pawns who seem to want us to go back to worrying about what will the British do with our currency? The Euro and the EU is the bulwark for small nations, and until Sinn Fein have the sense to see that they don’t deserve to be in government.
Supposing we suddenly had our own currency again, what would happen? As a tiny currency of a nation with a serious budget defecit, the currency would plummet. Short term, that would be good for exports, but long term, we’d have to put up interest rates to stabilise the currency, far higher than they are now, as we had to before the EMU currencies locked.
So these brainiacs would have us putting up interest rates massively in a recession. Well, there’s a plan.
The Euro isn’t perfect, and one-size-fits-all has its challenges, but I don’t fancy the alternative. Go ask Iceland.