June 20th: The Day The Euro was Major-ly Rejected

John Major

In 1990, the Commission President Jacques Delors was instructed to relaunch plans for the European Monetary Union (EMU), proposing a single currency and European bank. However, on June 20th 1990, British Chancellor John Major suggested an alternative to full monetary union, involving a currency that would circulate alongside the existing national currencies. Even today the various countries including the U.K. remain opposed to the EMU, and with the recent Eurozone crises of Greece and Spain, it is still an extremely topical subject.
   1990's Prime Minister Margaret Thatcher had stated earlier that week that she did not believe a single currency would exist during her lifetime; an attitude that reflects Major's intentions of rejecting the EMU. Describing Delors' full monetary union plans as having 'enormous difficulties and enormous dangers', Major pushed for his substitute system, termed the 'hard Ecu'. This was intended to be used primarily by businesses and tourists, and would be managed by a new European monetary fund. As predicted, the Chancellor's 'hard Ecu' proposal on June 20th ignited discussion in the U.K., some agreeing with this more cautious approach, and some labeling it as a delaying tactic.

GBP soon to be EUR?

    Although it was June 20th 1990 that saw the EMU debate provoke more serious debate, the earliest ideas of an economic and monetary union in Europe arose in 1929. Gustav Stresemann asked the League of Nations for a European currency, and was followed by numerous other EMU attempts between then and 1999, when the Euro was officially launched at midnight on January 1st. So Major's alternative currency was not such a victory, and was cast aside shortly after. 
    The Euro now stands as the second largest reserve currency, and the second most traded currency in the world, ranked just after the United States Dollar. Thirteen years down the line, the U.K. still appears reluctant to join the EMU. However with current crises underway, it's especially vital to consider the pro's and cons of joining:

• If the U.K. joins, it would help to strengthen the European identity
• But joining the EMU would encourage Europe's detachment from the rest of the world
• Then again, the U.K. would help make the Euro a stronger currency, and benefit trading
• Having said that, in a recession, the EMU would prevent the country from controlling its economy by devaluing the currency and increasing exports...

These are just a sample of the to-ing and fro-ings of the Euro debate. Perhaps the United Kingdom are holding back from jumping on the Euro bandwagon because they are worried they'll lose their national identity by replacing the Queen's head with the map of Europe. Let's face it, our money is an integral part of Britain. The portraits of Elizabeth Fry (£5), Charles Darwin (£10), Adam Smith (£20), Matthew Boulton and James Watt (£50) on the current notes resemble the momentous achievements of the country; something that would go unsung in the Euro currency. Conversely, if the U.K. did convert to the Euro, we might improve our chances of being awarded above nul points in the Eurovision Song Contest...maybe!