Local politicians react to euro announcement

Local politicians have reacted with indifference today to the announcement that the UK will "not yet" join the euro.

In a statement issued today, as expected Chancellor Gordon Brown said that the Government's five main economic tests had not yet been met. He claimed that while there could be big gains for the UK if it joined the single currency, euro membership would also have a negative effect on jobs and investment as well as a big shock to the housing market.

Commenting on the news, DUP leader Dr Ian Paisley said the decision was nothing more than a stay of execution for the UK. He added: “The entire country ought to be concerned that the economy, the currency, the consumer and the nation stand on the brink of being ripped off and swindled but not yet.

“This is little comfort and sows the seeds of economic confusion. The economy does not pass the five economic tests. Entry into the Euro would seriously undermine the future economic independence of the nation and severely damage consumer’s rights.

“Ask any consumer across the Euro zone and they will tell you that since entry into the Euro they have been systematically swindled. Basic food prices have increased and wages have not increased in line with this price increase."

One of Northern Ireland's three MEPs, Dr Paisley also said it was time for the Government to defend economic independence. "Nothing prevents the British public from using Euro and trading in Euro while abroad whilst maintaining our own currency.

“The only argument I hear in favour of the Euro is its convenience. Is it convenient to be ripped off? The Euro will certainly make swindling of the consumer a more convenient occurrence. The UK must say no to the Euro," he concluded.

Former Finance Minister Sean Farren also criticised the Chancellor's announcement. However, Dr Farren claimed continued isolation from the euro meant the UK's position within the EU would reduce over time thus effecting inward investment and maintaining barriers to trade with euro zone states.

Calling on a rigorous campaign to inform the public of the case for joining the euro, he said: "A concerted campaign informing the public of the case for the euro must be launched to dispel the myths and untruths, and to spell out the advantages.

"Nearly 60% of Northern Ireland's trade goes to other EU countries. With many new countries entering the EU next year, and most, if not all of them likely to join the euro, that trade will face huge challenges if we remain outside the euro zone."

Today's decision was finalised during last Thursday's special meeting of the full Cabinet. Mr Brown said it had been taken on the basis of the "national economic interest".

(MB)