Left Watch

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The Liberal Democrat commitment to scrap the pound would be "catastrophic" for Britain

Lib dem euro bird “It is in Britain’s long-term interest to be part of the euro.”

- Liberal Democrat manifesto

In The Times, Anatole Kaletsky explains why this policy would be disastrous for Britain:

"The main advantage for any nation of having its own currency, at least since the gradual abolition of the gold standard in the middle years of the last century, lies in the ability to conduct independent monetary and fiscal policies — to set interest rates and to borrow money, without regard to external political constraints. This monetary and fiscal independence is a far more important national prerogative than just the ability to devalue the currency to make exports competitive or revalue to make foreign holidays feel cheaper. And it is the permanent loss of monetary and fiscal independence that clinches the argument against joining the euro, regardless of whether economic conditions are deemed to be favourable or whether a referendum has been held."

Tim Montgomerie