It seems British Prime Minister Tony Blair can hide his love for the European single currency no longer. On Tuesday’s Newsnight television programme on the BBC channel, Blair claimed it would be a ‘betrayal of national interests’ for Britain to stay out of the €uro for political reasons and said he would persuade voters to join.
Well, it looks like the grinning insurance salesman/trendy vicar character who has been our Prime Minister these last five years has decided to plunge Britain into the €uro at a time when developments in Euroland make it even less attractive as an idea. The rise of the Far Right in France, the murder of Dutch leader Pim Fortuyn in Holland, high unemployment and worries about massive unfunded pension obligations make the idea of shackling ourselves to the euro mighty unattractive.
Of course the creation of the euro has made it easier for big firms to tap into a pan-European bond and equity market and made prices of goods and services on the Continent more transparent, which are benefits not to be sneered at. But I very much doubt whether Blair is going to flog this risky venture to the public on the grounds that it makes it easier for his Big Business chums to tap the world’s capital markets. Not very touchy-feely, is it? In an age of Visa and Mastercard, instant cash withdrawals and sophisticated derivative markets, it no longer is much of a hassle to operate in a multi-currency world as €uro-protagonists claim.
All in all the case for the €uro is weak and Blair is going to have a fight on his hands. Blair wants his place in history. But by staking his future on the €uro, he could become history.
