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The UK and the Euro: Politics versus Economics in a Long-Run Perspective

In: The Price of the Euro

Author

Listed:
  • James Foreman-Peck

Abstract

The successful launch of the euro at the beginning of 2002 also re-floated the question of the future membership of Britain, Denmark and Sweden. Denmark had obtained an exemption from joining the euro after voters initially rejected the Maastricht Treaty in June 1992. A referendum to determine whether Denmark should join the single currency, held in September 2000, declined the euro by 53 to 47 per cent. Before the poll took place, the independent advisory council of Danish economists reported to the government that the issue was ‘linked more to political considerations than economic factors.’ They did not expect the economic advantages to be very significant and were agnostic as to whether such advantages would be offset by the costs of permanently abandoning an independent monetary policy.1

Suggested Citation

  • James Foreman-Peck, 2004. "The UK and the Euro: Politics versus Economics in a Long-Run Perspective," Palgrave Macmillan Books, in: Jonas Ljungberg (ed.), The Price of the Euro, chapter 7, pages 97-119, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-52380-7_7
    DOI: 10.1057/9780230523807_7
    as

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