Nick Clegg: “Long live the pound”
Written by Tim Leunig on 8th June 2008 – 7:13 amOK, I admit it, I have misquoted Nick’s speech to the LibDem City Forum last month - but not by much. This was the most Euro sceptic speech by a LibDem leader in living memory.
Let me quote him precisely: “the UK is enjoying the benefit of currency flexibility and the devaluation of the pound against the Euro is giving a stimulus to manufacturing.” Doesn’t sound like someone who wants to join the single currency, does it? He acknowledges that things may change, but he doesn’t exactly go out of his way to make it sound likely: “conditions may well change to make membership of the Euro the right option for Britain and in these circumstances the LibDems would make that case, subject to a referendum”.
I think that this is essentially the Labour Party’s position: the Euro is not the right option now, but if it becomes so, then we will support it. I guess that, for better or worse, we will not enter the next election promising a referendum on the Euro. Indeed, this speech raises the possibility that we will pledge to keep the pound for the next parliament.
Posted in Europe / International, Op-eds
8th June 2008 at 8:11 am
Sounds good to me…
8th June 2008 at 8:49 am
It’s a pretty bizarre position to take though isn’t it? If the UK and EU economies are aligned sufficiently, we go in. Then if we start to become unaligned, we no longer have flexibility to deal with any problems arising.
8th June 2008 at 9:42 am
I have always believed we will join the Euro - but not when our currency/economy is in a strong postion - but when things go pear shaped & join in a weak postion if they will have us!!
8th June 2008 at 10:11 am
I’m basically in favour of joining the single currency and am totally in favour of the European project in principle but I do think Europhiles have to realise the need to make the case that Europe is a good thing on practical grounds…therefore i would welcome a more hard-headed way of presenting the case…
8th June 2008 at 11:00 am
If our European trade increases it may be better for Europe if we keep the pound. we would be far more dynamic in the world market and have a greater degree of adaptability.
8th June 2008 at 2:27 pm
I suppose it’s a good idea to take the Euro off the agenda. Imagine what our glorious media would do if Nick had come out & clearly said that it was our ambition to go in. It saddens me though that we seem increasingly prepared to compromise principle for pragmatism. That’s what the other Parties do & I don’t want power on that basis. If I did I’d join the Tories or the psuedo Tories of New Labour.
8th June 2008 at 6:07 pm
These are factually correct statements, what is the problem with them. I don’t read them as euro-sceptic, just recognising the economic realities. I am sure it will be easier to convince people to go into the Euro once they realise the impact our present exchange rate is having on their European holiday.
8th June 2008 at 11:44 pm
Gah, what’s the excitement here? Please, move along quickly.
Success in politics is had by creating an effective balance of pragmatism and principle, so how this applies to the Euro is ‘not now, thanks’.
Anyway I think the political arguments have become divorced from the economic arguments for all sides to be reconciled satisfactorily: remember the ‘pound’ was the original single European currency before fiat money began being introduced across the continent and it retains it’s hold on our imagination because it links the value of our money to tangible real-world values in the same way that all ‘imperial’ measurements do.
9th June 2008 at 11:19 am
Tim, I find your complaint breathtaking. Nick’s position is correct, and you want him to pretend that it isn’t in order to campaign for the Euro? You want him to do this even though joining the Euro would not be a good decision right now? Why on earth?
11th June 2008 at 3:34 pm
We need to be able to set the interest rate for the UK to suit the UK economic conditions at the time. To do this means keeping currency being separate from the euro.
Countries in the euro zone can find they have different economic conditions needing different solutions eg Ireland wanted higher interest rates to cool the economy at the same time that Germany wanted low interest rates to encourage growth.
11th June 2008 at 3:49 pm
“To do this means keeping currency being separate from the euro.”
Or it means devolving economic powers through appropriate structures of governmental authority to separate fiscal and monetary policy.