Why doesn't the UK use the euro?

Answer 1

Guessing as a Dane, and having witnessed 2 voting sessions about it here; I'd say we hate to lose the sense of nostalgia and the sense of nationality connected to an old, currency of the kingdom.

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It should be added that the governments economic advisers ('Vismændene') on both occasions publicly have said that the only gain for Denmark would be a minor reduction of the interest spread between the Danish currency and the Euro. This lead them to conclude that if Denmark should join the Euro the purpose should be political (e.g. support of the overall European integration process), not economic. They also pointed out already in year 2000 that a common currency spanning economies of very different productivity developments can only work long term if at least one of these two conditions are met: 1} either salary levels must be downward flexible in the low productivity countries OR 2} massive migration between countries from low productivity to high productivity countries must be accepted. At the time of writing (Feb 2010) it is obvious that the EURO is exactly experiencing these problems with Greece in the focus.

PS: the most recent opinion pools show a slim majority in favour of the EURO, but there are no specific plans for a new referendum.

Answer 2

Answer 1

Because, although the UK is part of the EU - we retain the right to continue to use our own currency. Personally speaking - We've already given away far too much power to the European Parliament. I think we should never give up the British Pound. Our currency is part of our identity, and I, for one, will always vote against it if given the opportunity.

Answer 2

A democratic consensus was issued to all voting-age citizens of the UK, asking whether they want to keep the pound or change to the Euro. A staggering 71% of UK citizens voted to keep the pound.

Aside from that, the UK is rather opposing to the European Union. UK politics has had many disagreements with the Union. The UK and EU are like chalk and cheese - they don't get along.

The British government has declared that "as long as the British Parliament and the British government exists, the UK will never use the Euro as their currency".

Answer 3

Denmark and the United Kingdom have recieved special 'opt-outs', essentially allowing them to be 'grandfathered' into the European Exchange Rate Mechanism without having to adopt the Euro, which would otherwise be a requirement.

Sweden, however, have argued that while it is a requirement to adopt the Euro once you fulfill all the requirements of the 'third EMU stage', there is nothing that requires a nation to fulfill all the requirements. And so, Sweden have deliberately not done so, in order to keep their own currency.

All three of these nations seems to feel that the Euro, while possibly a good thing in theory, would remove a bit of the individuality of their nation, and have thus avoided it.

Answer 4

The UK is in a thinking process. Wait and see. Scroll down to related links and look at "Eurozone - Wikipedia".

Answer 5

We don't want to get rid of the Danish Krone. Getting rid of the Krone or the Queen would break Danish tradition, and we're just not ready for that.

Answer 6

Because the EURO has been rejected at two popular referenda. As a majority in Parliament favours a change to the EURO the question may come up again any time soon.

Answer 7

To ensure danish economic supremacy.