Letter: Political perils of single currency

Barry Jones
Thursday 05 September 1996 23:02 BST
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Sir: As your editorial (4 September) indicates, there are economic arguments on both sides of the European single currency debate. My concerns are with the political implications.

A single currency will necessitate a much larger flow of financial support to the poorer peripheral regions whose economies will not be able to keep up with the stronger German, Dutch and possibly French economies.That will mean greater contributions from the wealthier member states to the EU at such a level that the Common Agricultural Policy could be regarded as a minor financial exercise.

Whatever the level of funding, the workers in the contributing states will regard it as too much while those in the recipient states will consider it too little. That is the real danger of the single currency: exciting international passions and resentments which endanger the integrity of the European Union.

BARRY JONES

School of European Studies,

Cardiff University

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