Euro zone as one of the EMU (Economic and Monetary Union) in economic environment forms when countries members of Europe abandon and abolishes their currency and economical transaction policies to adopt a single currency and common economical policies (Ian 1992).
This is the fundamental principle for formation of the Euro zone that gives UK a conditional requirement in joining Euro zone. This implies that UK shall have to adopt monetary, political, economical policies and loose monetary policy control to European Central Bank based at Frankfurt. With this light into the argument, the paper shall asses the benefits and shortcomings of the UK in relation to joining Euro zone.
The main sides of the assessment shall be whether the Great Britain shall successfully abolish the sterling pound in favour of euro and its pros and cons. Other issues to consider are the employment for Britons, foreign countries investment effect, Euro zone impact on Britain if it does not transact using euro, interest rates, Britain membership position in the EU and its sustenance of its influence globally (Mifflin 2002: 107). All these issues must be weighed against own currency in relation to comparative and competitive advantages in the global market by joining Euro zone (Mifflin 2002). Additionally, Britain policy makers should learn or benchmark from past EMUs to come up with a better policy. The next section shall look the kind and nature of benefits and shortcomings assessment for joining or staying out of Euro zone.
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