The real cost of the euro (From Swindon Advertiser)

The real cost of the euro

COUN MICHAEL Dickinson argues passionately in favour of joining the euro (January 4).

He claims the euro will bring us cheaper mortgages because they will harmonise with those in the eurozone, where, at present, interest rates are lower.

This illustrates why the UK should not join the euro. UK interest rates are set to suit the UK economy. Our domestic economy is extremely complex, with variations between geographical regions and industrial sectors. It is difficult to set a single interest rate that benefits all UK regions and sectors.

Even Harry Potter couldn't magic up a single interest rate to benefit the incredibly diverse eurozone.

Different national economies need different rates to suit domestic circumstances. A centralised one-size-fits-all interest rate creates overheating and inflation in some countries, and recession and unemployment in others.

Sooner or later, the euro would bring high inflation and/or more unemployment to the UK.

Does Coun Dickinson think a cheaper mortgage for him justifies such cost to society?

P WARBECK

Dryden Street

Swindon