United Kingdom and the euro

Related: Women The United Kingdom did not seek to adopt the euro as its official currency for the duration of its membership of the European Union (EU), and secured an opt-out at the euro's creation via the Maastricht Treaty in 1992, wherein the Bank of England would only be a member of the European System of Central Banks.

[1] The United Kingdom joined the European Exchange Rate Mechanism (ERM), a prerequisite for adopting the euro, in October 1990.

It cited considerable long-term benefits to be gained from eventual, prudently conducted Economic and Monetary Union (EMU) membership.

The government committed itself to a triple-approval procedure before joining the eurozone, involving approval by the Cabinet, Parliament, and the electorate in a referendum.

[5] In December 2008, José Barroso, the President of the European Commission, told French radio that some British politicians were considering the move because of the effects of the 2007–2008 financial crisis.

[8] In February 2009, Monetary Policy Affairs Commissioner Joaquín Almunia said "the chance that the British pound sterling will join: high.

German news magazine Der Spiegel saw this as an indication that the country has no intention of switching to the euro within the foreseeable future.

[1] The European Union agreed to prolong until 30 June 2025 permission for Britain's clearing houses to continue serving customers in the EU but officials say that this will be the final extension.

On 29 December 2008, the BBC reported that the euro had reached roughly 97.7 pence, due to poorer economic forecasts.

[21] At that time, some shops in Northern Ireland accepted the euro at parity, causing a large influx of shoppers from across the Irish border.

[25][26][27][28][29] A report in Britain's Daily Telegraph argued that the high euro had caused problems in the eurozone outside Germany.

One argument was that currency flexibility is a vital tool and that the sharp devaluation of sterling in 2008 was just what Britain needed to rebalance its economy.

Opponents feared that if Britain adopted the euro, these liabilities could put a debt burden on the British taxpayer,[32] though others have dismissed this argument as spurious.

[33] One of the underlying issues that stand in the way of monetary union is the structural difference between the UK housing market and those of many continental European countries.

[39] The wording of the question may have varied, but the figures showed that a majority of British people have been consistently against adopting the euro.

In the Crown Dependencies, the Isle of Man, Jersey, Guernsey, and Alderney, pounds all share the ISO 4217 code GBP.

Tynwald passed the Currency Act 1992[citation needed] as part of preparations for the event that the UK decided to adopt the euro.

In such a scenario, the Isle of Man wished to retain the right to issue its own currency, believing it to be an important public statement of independence.

Retaining the island's own coinage also enables the Isle of Man Treasury to continue to benefit from the accrual of interest on the issued money (seigniorage).

In November 1999, in preparation for the introduction of the euro notes and coins across the eurozone, the European Central Bank announced a total ban on the issuing of banknotes by entities that were not national central Banks ("Legal Protection of Banknotes in the European Union Member States").