Why the Greens say No to the Single Currency
13 October 2002
When money speaks, the truth is silent (Russian proverb)
Those who have travelled to a 'Euro Zone' country this summer have found their hosts largely unenthusiastic about their new currency. Holidaymakers may also have noticed the increase in prices since the Single Currency was introduced. A poll from Barclays Capital shows 49% againstjoining, and 36% in favour.
These are serious blows for New Labour. Although the Government dares not openly argue for the Single Currency it has been very ready to label its opponents; as right-wing, reactionary, xenophobic or 'anti-European'. This sweeping caricature is simply not true for the vast majority of those opposed to the Single Currency. They come from all political backgrounds and from none, as the government knows perfectly well. Labour even ignores progressive opposition from within its own ranks.
Many people are surprised that the Green Party is leading progressive opposition to the Single Currency. In fact it is precisely because we are radical and internationalist that we oppose British entry to the Euro. A currency that is designed to undermine domestic economic control and help economic globalisation in favour of undemocratic centralised institutions is neither progressive nor internationalist.
The Single Currency will make recessions worse. It is a certainty that millions of European people, including whole regions or nations, will be trapped at any one time in the wrong exchange rate and with the wrong interest rate. An interest rate that is too low will trigger inflation; too high, deflation and recession. The lessons of the Exchange Rate Mechanism (ERM) should not be forgotten. Governments surrender economic control at their (and our) peril.
The European Stability and Growth Pact lays down rigid rules for countries using the Euro. Even though Britain has not joined the Euro, Gordon Brown has still been warned that his borrowing plans may breach the pact's guidelines. It may really come down to a choice between investment in schools and hospitals or the Single Currency. We cannot afford both.
Tweet
Eastern Region Green Party RSS Feed 
