As Sterling soars, is the Euro the root of all evil?
It seems that much of the world is finding once again a confidence in Sterling, even as Her Majesty’s Government reiterates its intention to ditch the currency and adopt the Euro as soon as it can engineer a referendum victory. Other countries have been buying Pounds at the expense of the Euro, proving utterly wrong those who predicted that if Britain did not join the Euro that the consequences would be disastrous – economically and politically. We were told that the Pound would sink without trace, the status of the City of London as ‘financial capital of the world’ would diminish, and the Euro would supplant the US Dollar as the reserve currency of the future. Six years on from the Euro’s birth, the Europhiles have been proved wrong on all counts.
Conversely, the European economy has stagnated as the UK has enjoyed almost 14 years of continuous growth since liberation from the ERM. Unemployment is stuck at 12% in the Euro-zone, while in the UK it is presently 5%. And now the Pound Sterling is being restored to its traditional status as the choice of reserve currency for the world’s major central banks. Italy has displayed a supreme lack of confidence in the Euro by holding 24% of its reserves in Sterling, and she is joined by Russia and Switzerland who also hold large amounts of Sterling. The City of London has retained its global status, and known global reserves of Sterling have risen from £55 billion to £111 billion in the past two years. If the love of money is the root of all evil, the love of the Euro epitomises the adage.