European Monetary Union and United Kingdom

On January 1, 1999, eleven (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxumbourg, the Netherlands, Portugal, and Spain) out of the fifteen European countries that make up the European Union(EU) formed the Economic and Monetary Union(EMU) and began using a common currency, the euro. Greece joined as of January 1, 2001. The remaining three countries, Denmark, Sweden, and the United Kingdom have yet to join the EMU either because they do not meet the criteria set in …

…be through monetary union and a single currency. The advantages would be currency stability, a common currency, removal of barriers to trade between Britain and the EMU and economic growth. The disadvantages, however, are the loss of soveriegnity and transition costs. Britain would no longer have control over certain aspects of its economy. In summary, Britain would reap many economic benefits by joining the European Monetary Union and bring stability and prosperity to its country.