Where is little or no information linking the Eurosceptics’ attitude to any critical assessment of feasible scenarios when emu has been achieved (Point of View, 20 March).
Entering the emu means surrendering independent control of exchange rate policy and interest – so all member states lose the part of their monetary control which appears to be the most widely used method of short-term control of inflation. It leaves only fiscal policy (taxes and budgets) for dealing with undesirable variances normally applied annually. Earlier corrective measures mean less fluctuations.
During the past two decades, the UK has been among the most unstable of the leading industrial nations. Regulation of an economy requires reliable statistical returns on all salient data. Quick response to economic events results in stabler conditions.
This function is noticeably related to the magnitude of the economy. Denmark’s regulation of instability is historically corrected in shorter timespans than the 10-times greater populated UK.
Does understating irrevocable risks of this nature really outweigh the estimated 0.4% of GDP reduction of business transaction costs in the UK or its equivalent two months European growth? The risks ignore the occasional and normal adverse trading conditions such as political, social or industrial unrest.
Could a transition of the EU through the emu turn the EU into a group of united states, as in North America? The comparison is naove because the movement of labour is much freer in the US. In the EU, only manual labour and a few professionals can find work in another state.
Integration will have to come by evolution rather than threats. In the UK, the urge to consolidate sets the right example for the whole union.