Why did UK not use the Euro?
The UK has not joined the Euro because a number of economic conditions were not in synch with the rest of the Eurozone. In order words, the British economy is 'out of synch' with that of the Eurozone. Moreover, there is a lot of hostility in the UK to the European Union.
The UK does not use the Euro because of a number of economic factors. In order for a stable transition is it important that the economy of a member state and the eurozone are in sync and this was not the case when the UK last looked at joining. The UK is not under obligation to adopt the euro and currently has no plans to look into the issue again.
The UK government decided not to use the Euro as its currency because it was felt that they would lose control of the ability to set the UK's own interest rates and therefore wouldn't be in total control of the UK economy. Around one third of the countries who are part of the European Union have retained their own national currency.
Euro is the official currency of the European Union. However, some countries inside the EU, decided to keep their traditionnal money (UK sill use the Pound). The Euro zone is the group of countries that had adopted the Euro (€) as their currency. On the 27 countries in the EU, 15 countries belong to the zone Euro. The other countries have either refused (UK, Sweden, Denmark....) adopting the Euro or are waiting for their Economies…
The UK does not use the euro because of the fear of a standard interest rates for all the countries that are members of the European Central Bank. Because of the varying economic states of the several European countries it would be nearly impossible to find an interest rate that would benefit all of them.
The UK and Denmark opted to remain outside the Euro and are under no obligation to join the single currency, unlike new European Union states that have joined the union since 1993. The UK has chosen not to join partly for economic reasons, but mostly for political reasons. The Conservative government under John Major decided to not participate in the first group of countries that joined the Euro. The Labour party when it came to…