From today Europe has a new currency, the euro. Until January 1, 2002, it will not exist in notes and coins, but only as an electronic currency. The gradual introduction of the euro is perhaps wise. By the time the notes and coins arrive, many people will have already dealt with the currency. When, six months later, the national currencies disappear many Europeans will not notice significant change.
It is an exciting transition. Europe has been bloodied by war and dispute for centuries. Indeed, the period since 1945 has been the longest period of peace in Western Europe in history. A common currency will do so much to integrate economies that dialogue, arbitration and the rule of law will become the only way to resolve disputes between nations. Currency union will inevitably bring grater political union. The new currency will bring the European ideal to the city-street level. Hitherto much about the European Community has been elitist or dealing with farm produce.
On an international level, the euro is bound to challenge the US dollar as the main currency unit of international trade and travel.
In the circumstances Britain refusal to join the initial currency union today is odd. It seems based on an inflated and out-dated sense of importance in the world. Britain should have accepted the inevitable. Ultimately it will have to join the currency union and see the pound sterling go out of circulation, if it wants to take part in the economic benefits that will flow from the union. Why take the opprobrium of being seen as a reluctant partner rather than sharing the excitement of being an original participant if partner Britain must ultimately be.