The euro's rise offers no reason for Britain to scrap the Pound

Roger Helmer MEP

Continental MEPs are cock-a-hoop that the euro has climbed to the dizzy heights of 94 US cents — only about a 20% devaluation on its launch value in 1999, and well up on its historic lows.

Will Britain join now, they are asking.

As so often happens, they have missed the point. The euro's collapse wasn't the reason to stay out, and its anaemic recovery is no reason to go in. I am delighted for British industry and agriculture that a stronger euro eases the pressures on the British economy and helps our exporters. But of course it does exactly the opposite for companies in the euro-zone.

Germany is practically in recession with unemployment at double our level. This is despite the massive devaluation of the euro over the last three years. As the euro strengthens, times will get even tougher for euro-land exporters. We in Britain stand to benefit from the euro's recovery precisely because we are NOT in the euro zone.

As the euro strengthens, times will get even tougher for euro-land exporters
The reason for keeping the Pound is exactly the same as it was before — that we can set our own interest rates for British prosperity and British jobs, rather than having a "one-size-fits-all" interest rate set in Frankfurt by unaccountable bureaucrats. I've always said that a euro interest rate would be wrong for most countries, most of the time. We now see that happening. The euro rate is too high for Germany — so they have recession and job losses. But it's too low for Ireland and Portugal — so they have inflation.

Meantime the pressure for upwards tax harmonisation in the euro-zone is growing — and Gordon Brown's plans for NHS spending are under threat from the EU's so-called "stability pact". It is vital that we in Britain keep control of our own interest and tax rates — and that means keeping the Pound.

It is vital that we in Britain keep control of our own interest and tax rates — and that means keeping the Pound