To actually even consider the wholesale break up of the eurozone is breathtakingly ill informed and would have ramifications not just for those who actually live here, but the global economy. So be careful what you wish for.

Mary Honeyball made a perfectly reasonable, although slightly confusing remark that the current travails spell the death knell of euroscepticism. That’s what Sir Humphrey would have called a “courageous” position.

Other than that, get off her case, she’s got a right to her viewpoints.

1) re Interest rates if UK had joined Euro a few years ago
A good answer – thank you

2) re interest rates if UK joined EU soon
A good answer however you have not mentioned that by joining the Euro the UK would lose its freedom to set interest rates to suit its economic conditions and not those of a collection of other countries

3) re future cds spreads
An interesting answer – thank you

4) re your economics qualifications.
I am sorry but that is not an answer to my question but an attack on bankers. Are you saying that because most bankers, along with almost all politicians, did not foresee the economic problems that were brewing, a knowledge of economics is a liability, or at least not useful in this area? I ask again what are your qualifications in economics? You must have some good background knowledge to have answered points 1,2 & 3 so ably?

5) re a future referendum on joining The Euro.
Mary Honeyball do you really think that that is really an adequate answer? ‘I would follow the line of the Labour party on this issue.’ I hesitate to use the parental cliche but ‘If the Labour Party told you to jump off a cliff would you?’ At what point would you stop following Labour party instructions? You want the UK to join the Euro, so I suppose the question really is if the benefits of joining the Euro are so obvious do you believe that the people should be able to decide such matters?

Mary Honeyball, do please answer my follow-up questions as I think we really are making some progress.

None of my clients in Europe want to be part of the Euro, some of my german clients hope the European Union collapses. My Chinese suppliers think the UK will decline in competitiveness, living standards and lose jobs through remaining in the EU. I for one would leave Europe tomorrow and I am an international businessman whose company is dependent on foreign trade.

I find your views uninformed, unrealistic and out of touch. If you had any interest in the man on the street you might actually listen to their views rather than trying to impose your own on them. Your arrogance and stupidity is an insult to democracy.

It’s a spoof UKIP election broadcast…. Nope, that’s not it.

I know, the Daily Mash have posted their latest article to the wrong site….Hmmm

Aha

“I am a Labour member of the European Parliament”

Say no more.

Still, for £80k plus all the expenses you can handle I’d probably do the same. Sadly I’ve never been wealthy enough to be a socialist. Mind you looking on the bright side maybe, just maybe…

E Europe 1989 = W Europe 2011

Wir sind das Volk

Again. They had NO CHOICE, thanks to Darling. But thank you, Ms. Honeyball, for betraying your ignorance on this matter. As enlightening as all those who condemned Cameron about the aircraft carrier farrago, unaware that it was Brown who did this, and Brown who loaded the penalty clauses, so that to NOT build them would have cost more than building them. All to buy votes in Scotland.

Words fail me.

1) If the UK had joined the Euro more than two years ago would you expect UK interest rates to be lower or higher now?

Interest rates as set by the Bank of England were 3% on 25th Nov 2008, and dropped steadily to reach 0.5% in March 2009, since when they have been unchanged. Interest rates set by the ECB were 3.25% on 25th Nov, and dropped steadily to reach 1% in May 2009, since which they have been unchanged (key figure is Main refinancing operations). So in last two years we can assume that interest rates in the UK would not have been different to any large degree had we been part of Euro. In years 2002-2006 the data reveals that Bank of England rates were about 1.5-2% higher than European Central Bank. Obviously we cannot state what the ECB rates would have been had the UK been a member of the Euro, since the impact of the UK on the macro data and models the ECB uses to set rates would have been very high, given the relative size of its economy. One could argue that, assuming the ECB drew the same conclusions as the Bank of England Monetary Policy Committee, the rate of ECB rates would have been marginally higher than they were, but not as high as those set by the Bank of England. But this is mere speculation and impossible to prove.

2) If the UK joined the Euro within the next six months would you expect interest rates to rise or fall?

Given that interest rates BoE and ECB interest rates are virtually identical, and have been for the last 18 months, one would imagine that UK interest rates would not change greatly. Impossible to say however, depends on unknowns such as demand led-inflation resulting from any economic recovery, spike in commodity prices etc vs. decreases in wage inflation caused by austerity measures etc.

3) If the UK joined the Euro within the next six months would you expect the UK’s credit default swaps to rise by more or less than 300 bps?

I would expect them to remain where they currently are, assuming that UK’s triple AAA rating were to remain in place when it joined the euro. But again, total speculation.

4) What economics qualifications do you have that enable you to state that ‘joining the single currency … is the best one for our country’

I think we can all remember that the bankers, who we know had many economic qualifications between them, managed to get it so wrong on the economy.

5) If you are so certain that ‘joining the single currency … is the best one for our country’ would you support a referendum to put this question to the UK electorate?

I would follow the line of the Labour party on this issue.

Shame on you for an idiotic and utterly ill-conceived post.

1- If Irish debt was priced in locally controlled currency, not Euros, it could devalue the currency to mitigate the extent of these kind of problems. The policies of this nature used on Sterling from 2007 onwards have been quite beneficial in reducing the impact of the global financial crisis on the UK.

2 – If Irish debt was priced in locally controlled currency, it would have been more expensive as the perceived risk would be higher (no France / Germany to act as a backstop). More expensive debt would have led to slower growth, but as we are seeing now, this growth was not sustainable and the social impact of fluctuating growth is much more harmful than lower, but steady growth.

The Labour party was definitely correct when it identified that boom and bust cycles are very socially disruptive. What I think we may have learnt on this first attempt at avoiding the cycle, is that to break it requires strong, rigorous policy on controlling rates of growth and avoiding the boom phase in the first place.

Glad I checked back to read the comments. Thanks for your reply to my post timed at 10:26

First, some facts.

My email address does correctly identify the town in South West England where I live. I own that domain name.

As you should know, this town is not a banking centre, and therefore the assumption that I am a banker is rather strange. You should have realised by now that bankers are mainly in London, many in your constituency of London North.

As an engineer, I have worked all my life in manufacturing industry, including a total of eight years in Germany. I have been a director of small manufacturing companies in both Germany and in your constituency In London. I currently work for a German company in the UK.

I am not a councillor, and hold no governmental office of any kind, unless you include school governor in that definition.

Having corrected your rather odd assumptions, I should like to turn to my main point. I do not doubt that there are few German MPs or MEPs who would openly say think they should leave the Euro. That was not my point. I said that the majority of Germans – the German people – think the Euro was an appalling idea. In opinion polls at the time, two thirds did not want to give up the D-Mark. But the three main German parties – I don’t know about the Greens – were in favour of the Euro, so they ignored their own electorate and went ahead. Just like the Labour Party did when they broke the promise to have a referendum on the European Constitution / Lisbon Treaty.

In supporting Britain joining the Euro, you are also ignoring your own electorate. Go on, ask around London North, and see what answer you get.

You should spend less time talking to cossetted MEP’s and MP’s, and more talking to the people you – and they – represent.

You should aplogise for your poor representation of the people of London North