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Originally Posted by Nolwynn
I thought that Britain's economy doing so well on its own, was one of the reasons why Blair adopted a more laid back attitude regarding EMU membership and other constitutional matters?
If I remember correctly, as late as in June, Britain's interest rates were still increasing due to a souring economy while other European interest rates remained relatively low. Though things might've changed in the UK, our interest rates are now even lower since employment is extremely low, and so European institutions want to encourage investments and economic growth by lowering interest rates. Basic macroeconomics, much simplified. But if Britain were to suddenly join the EMU, interest rates would have to converge, now that'd be interesting.
Indeed. I don't think there should be a single currency uniting all the European countries when each European country is so culturally but more importantly economically different to the next. It is difficult to create policies which benefit all most effectively.
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I'm not really up to date with the economic situation in Britain today, but yes, Britain should still have a favourable position. I don't have many positive things to say about Sweden anymore. Our welfare system has become quite ridiculous, most definitely interfering with employment and economic growth. Our taxes are extremely high, making it fairly impossible for enterprises to remain in the country. Whenever they leave, thousands of jobs are lost, and so the notorious welfare system kicks into gear again. Love, Love, Love.
BLARGH. There, I now deleted everything I was about to say, economics is on my hate list. Besides, I doubt you'd want to hear my full opinion anyway.
Sweden was one of the overly welfare orientated countries I had in mind. There needs to be more room for market forces to move in Sweden and les market distortions by way of high taxes and high welfare payments. How strong are the trade unions in Sweden?