The strengthening push for full political union, following monetary union.
by Melvin Rhodes
Due to the sudden and unexpected
death of my father, I spent the first few days of January in England.
It had only been four months since my previous visit, which included
a tour of central Europe, which I wrote about in two recent articles
for WNP. Harold Wilson, a British Prime Minister in the 1960s,
once said that "a week is a long time in politics;" meaning that things
can change dramatically in a very short time. Four months is even longer.
On my previous visit, many people
in England and on the continent seemed unaware of the euro. You
would have to be a hermit today not to have heard of it. The media
is dominated by news of the euro, its launch, exchange rates with other
currencies, the implications for those involved and for those who are
deciding on future involvement, how the growing world recession may
impact euro member countries, the strengthening push for full political
union following monetary union, and Europe's relationship with the
world's main trading currency, the American dollar.
Newsweek's "Euroland" special
issue introduced the subject in the following way: "In January, the
world will start getting used to a new currency. Whether you love the
euro or hate it, know this: nothing so big has ever happened before." The
euro may not be the main issue on American television news, but its
impact on America could be far greater than any issue currently being
widely discussed, including President Clinton's trial. In order to
understand this, we need to focus on two main areas, economic and political.
The Economic Euro
Before World War II the British
pound sterling was the dominant currency of world trade. Prices of
goods traded between nations that had nothing to do with Great Britain
were often quoted in pounds because businessmen the world over knew
the value of the pound. The pound was printed by the Bank of England.
