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Published Date: 05 January 2009
By HAMISH MACDONELL
ALEX Salmond asked businesses all over Scotland to accept the euro this year to help boost the tourist industry in the Year of Homecoming.
The First Minister said some government agencies, such as Historic Scotland, already accepted euros and he hoped businesses would do the same.

He added that he believed there was also a "strong argument" for joining the euro on a permanent basis.

The First Minister's comments followed the launch of a campaign by SNP MSP Willie Coffey to encourage more shops and attractions to accept the euro, making it easier for them in the Year of Homecoming.

When he was asked about Mr Coffey's approach, Mr Salmond replied: "I think there is a strong argument for the euro, and I think as sterling declines even further that argument is being made very strongly.

"Of course in the short term, businesses in Scotland should follow the example of the official government agencies like Historic Scotland and make it clear to the many European visitors we hope to welcome for the Year of Homecoming that their currency and their money is accepted in the tills of Scotland."



The full article contains 195 words and appears in The Scotsman newspaper.
Page 1 of 1

 
1

Rufus-T-Firefly,

04/01/2009 23:39:40
"He (Alex Salmond) added that he believed there was also a "strong argument" for joining the euro on a permanent basis."
=======================================================
Hmmm I wonder what that strong argument is.

Joining the Euro with the pound at the lowest rate it has ever been?

During a recession when it is crucial that the UK is able to decide its monetary policy and cut interest rates if necessary?

And what about the cost of replacing all machinery that accepts pounds, in the middle of a recession?

Another great call by Ex-Royal Bank Economist Salmond.
2

Newton_Invented_Gravity,

05/01/2009 00:18:04
Britain is heading into permanent decline, the only hope for it is to try and beg admission into the Eurozone.
3

Forward not Back,

05/01/2009 00:48:35
#2 - which won't happen, given the debts that the UK government currently have.

Germany is already unhappy about the debts of Club Med and Ireland and will not loosen its surplus to help support the other Eurozone economies. This could lead to political turmoil in countries other than Greece as the recession bites hard and fast in Ireland and Spain, amongst others. In fact, Germans don't want Euros originating from other member states as this is shown in the differentials in credit default swaps in the various Eurozone states, particularly between Italy and Germany.

So, accept Euros, particularly when parity makes it easier to convert, but don't join the currency unless there is full political union as well.
4

subrosa,

05/01/2009 00:55:34
# 1

Nothing to do with joining the euro. Just a sensible approach for European visitors. I shall be accepting euros this year in my business. Makes sense.
5

Wardog™,

05/01/2009 01:04:58


Great idea and a way to encourage visitors to these shores from Europe,

Common Sense and outward looking.

6

Newton_Invented_Gravity,

05/01/2009 01:06:24
Will tourists from the Eurozone want to change their money into sterling when it's likely to be worth even less by the time their holiday's ended?
7

UK007,

05/01/2009 01:08:56
#1-RTF: A sound economic comment.
8

,

05/01/2009 01:13:00
Comment Removed By Administrator
Reason:
9

Billiam Wallace,

05/01/2009 01:30:46
Accepting Euros is bound to be a good idea for tourism. How bad do we feel when a business down south won't accept a Scottish banknote? We know they are the same as real Bank of England notes so why won't they take them? However, if there is any truth in the rumours about a New World Order trying to control everything with a world currency and that the Euro, Amero and whatever they dream up for Asia being the precursor to a world-wide single currency, then I think it is important to steer clear of such centralisation. My boss is Dutch and he informs me that the Dutch hate the Euro and wish they had never joined, they want their Guilders back. Mr. Salmond is merely talking sense as far as he sees it, but those of us of a more paranoid, cautious mentality would prefer him to hold off joining anything so scary as a central bank.
10

Roy,

05/01/2009 04:24:36
I have been accepting the Euro for several years. It has got me business that otherwise would not have come my way.
11

Rodster,

Glasgow 05/01/2009 05:05:18
In my business I have been accepting and trading in € since its inception.
once gthe Little Englanders drop their stupid opposition it is where we need to be ,firmly in the Eurozone.
This recession will clearly show that to all, UK PLC will have a deeper recession a longer recession and more long term harm than any country in the Eurozone.
12

donald,

glasgow 05/01/2009 05:19:33
Ireland adopted the Euro long ago and Ireland, traders and visitors all benefited. There is no need to pay to convert into punts and pay again to convert into a home currency. A couple of (real) Irish pubs in Glasgow advertise that they accept Euros and have no complaints.

It is only English chauvinism that prevented us from adopting the simple convenience of Euros years ago. They even have difficulty in accepting Scottish bank notes and are still out to destroy what is left of Scottish banking..
13

A True Scot.,

05/01/2009 07:30:29
12

True enough this obsession with the pound is down to English nationalist jingoism rather than any fiscal or monetory consideration.
This pathetic Rule Britannia Britishness nonsense is going to sink us all.
14

Jimmy Le Pie,

05/01/2009 07:41:08
Seems Rufus is incapable of reading an article before spouting off against the only party leader who puts Scotland and its people first.

KEEP UP THE STUPIDITY RUFUS - YOU'RE DOING A GREAT JOB.
15

Prester John,

Pots_n_Pans 05/01/2009 07:43:01
Being in the euro has driven Portugal, Italy, Greece and Spain to the point where they may well need to leave the euro to regain control over their economies. They will, in the process, default on their international debt. How soon - difficult to say but it could be sooner than many think. As for Ireland, they could follow just as quickly.

The big disadvantage of being locked into the Euro is that individual countries cannot devalue their currencies at need to cope with changing economic circumstances. Much of the Greek unrest is down to the straitened economic circumstances. That could well spread throughout the other countries in such circumstances.

Gordon Brown's refusal to go into the euro could be his one major success from all of his years with his hands on the levers of power.
16

For Scotlands Future,

Vote for the SNP 05/01/2009 07:44:53
The Pound reaching parity with the Euro??
You should be so luck if, in a few month, the pound should be at such a high level.
17

For Scotlands Future,

Vote for the SNP 05/01/2009 07:46:55
Lets try that again:
The Pound reaching parity with the Euro??
You should be so lucky if, in a few months, the pound should be at such a high level.
18

oder,

Scotland 05/01/2009 07:52:52
being a proud Scot I willingly accept anyone`s money I would never discriminate! good business sense!
19

A True Scot.,

05/01/2009 08:00:29
15

How can you prove its because they are using the Euro? this economic down turn is affecting all currencies including the pound and dollar so how on earth will Portugal Italy and Greece benefit from moving back to their original currencies? they were never strong in the first place.
another idiot making it up as he goes along.
Zimbabwe has full control of its own currency and as a result its in free fall not much of a argument in favour of your idiotic assumptions is it?
20

Donnie Murdo,

Western Isles 05/01/2009 08:03:37
Bloomin' right get geared up for the Euro! Went to Amsterdam for new years to spend with chums and stepping out of Schipol airport, you are greeted with the biggest rotating advert for RBS I have ever seen.

Right there, in Amsterdam was the RBS flying her colours.

After that, popped off to use an ABM AMRO cash machine - to find it's owned by RBS!

Also, found that my pound was only worth 95c. So, time we geared up and took Euro's. It's only a method of payment so let's take it.
21

Donnie Murdo,

Western Isles 05/01/2009 08:05:30
"Much of the Greek unrest is down to the straitened economic circumstances" - Prester John,Pots_n_Pans

Rubbish. It's mainly to do with immigration and latent racism on behalf of the Greeks.
22

A True Scot.,

05/01/2009 08:05:37
20

If we are going to commit then we should do it now while we have parity and not later when the currencies may diverse either way or else we will lose out badly as we did when we decimalised.
23

Prester John,

Pots_n_Pans 05/01/2009 08:40:31
#19
I hope that if things go as I suspect they might you will have the good grace to admit you were wrong. I am not making it up as I go along, having family members working in the financial sector and some experience of macroeconomics myself.

I think the euro is rather more fragile than most people realise. It's never been that popular outwith the ruling classes with significant numbers in all of the eurozone who would quite happily ditch in favour of their original currency.

Will the euro celebrate its 20th anniversary |? I doubt it very much.
24

Prester John,

Pots_n_Pans 05/01/2009 08:57:51
#22
The reason we lost out when we decimalised was because we did it on the Pound, not the 10s / 50p. It created a significant inflationary effect which had an impact lasting for a decade.

That is a completely different circumstance from the external devaluation of the period used to make the Pound more competitive.

As for the other currencies diverging; that is exactly the problem for the weaker economies within the eurozone. They have no scope to devalue / revalue a currency. The countries I mentioned all have high, escalating debt and no mechanism to relieve pressure. Look at the unemployment rates and debt:GNP ratios.

I firmly believe that they will have no choice other than to drop out of the euro and default on their debts. Politics within those countries will make it a real 'no-brainer' for their politicians. After that, it is only a matter of time until the euro itself falls.
25

A Better Way,

Edinburgh 05/01/2009 08:59:50
Of course Mr Salmond could be laying a cunning trap for all those low life unionists.

The European Commission forced Westmidden to give Scotland its own Government after the UN recognised Scotland as a Nation with its own distinct culture and the fact that they had No Voice of their own in a fixed Westmidden System that favoured the English.

If the remains of the UK is fully involved with the EU then the EU will give Scotland its own status as a member of the EU in its own right. That would stick it right up Westmidden and the New Labour Traitors here in the Scottish Nation.
26

Prester John,

Pots_n_Pans 05/01/2009 09:10:36
Of course, the failure of the euro would then put really great pressure on the whole Eurostate project. With any luck it would be forced back more into a trading bloc than an emergent 'wannabe' superstate.
27

Lianachan,

Highlands 05/01/2009 10:15:40
I hope everybody kept their chocolate coins from christmas - they'll be worth more than the pound soon.
28

Hugh Roscombe,

05/01/2009 10:27:34
Currently:-

1 GBP = €1.06107

The pound is up 3 cents since Friday.
29

A True Scot.,

05/01/2009 10:28:00
25

No there is no real difference. If you change a volitile unit such as currency the chances are the average punter in the street is going to lose out unless its done deliberately and consciencously to prevent loss. Our government deliberately ripped us off with the change over to decimalisation it wasnt circumstance nor due to any political nor economical situation at the time. It was a calculated scam from the start. It was supposed to be a precursor to joining a euro currency at the time which of course didnt happen and was never going to happen at that time.
Typical Tory policy.
30

A True Scot.,

05/01/2009 10:30:51
25

The countries you mentioned had high debt and poor currency values when they were independent from the Euro now your speiling your garbage based on the effects of a massive global down turn or doesnt that factor in to your "reasoning"?
31

A True Scot.,

05/01/2009 10:34:44
25

If they have no choice but to drop out of the Euro then every currency on the planet is screwed you cant put that armeggedon scenaro forward for just a few currencies and not recognise the effect it will have on all currencies.
The fact is it wont matter what currency these counties use under the present conditions the same effect will prevail. They will either sink or swim with the euro or sink with their own currency.
32

carrottop,

Dumfries 05/01/2009 10:35:28
Cant understand the mentality of changing to euro when the pound is low surely should convert when pound is high and we would all get more for our money, basic rule of share dealing buy low, sell high so whats different with money.

The present line of thinking will have us all in poverty and just shows how the unintelligent are using weight of numbers to promote dubious ideology.
33

A True Scot.,

05/01/2009 10:50:20
33

Dont be daft if we shift over to the euro when the pound is high prices will rise to reflect the new value of the currency. We either shift when its on par or we get ripped off its that simple.
34

person who's right,

Edinburgh 05/01/2009 12:03:42
#33 and #34 – I don’t think either of you are spot on, I’m afraid.

Changing to the Euro when the pound is low has some pros and some cons.

Main pro is that it makes UK-produced goods & services relatively cheap to others in the Eurozone. So UK exports would benefit, and would be locked into that competitive advantage for years to come. Our tourist industry would also benefit.

Main problem is the corollary – that it makes buying goods from the Eurozone very expensive, and locks us into that for years to come. So importers who buy from Eurozone countries will face high costs, as will people looking to take holidays there.
35

PaulW,

Borders 05/01/2009 12:14:43
Sensible comments from Alex Salmond. The opposite from Rufus, as usual.
36

A True Scot.,

05/01/2009 12:35:35
35

"Main pro is that it makes UK-produced goods & services relatively cheap to others in the Eurozone."

No as soon as the date of a change over is known the prices will rise to meet any shortfall in cost or potential benefit to the consumer for a start.

Unless the changeover is flawless at a parity level then the basic consumer will be ripped off and there is no getting around that fact.
37

Liberal for life,

Dunblane 05/01/2009 13:17:42
I agree!

Is this a first for me to agree with Aik Salmond I ask myself - mind you it would be so much simpler if we simply joined the eurozone at long last and be done with all this seperate money lark.
38

Goggsie #,

Fife 05/01/2009 13:37:33
#36 Well..er....actually PaulW, #1 & #7 are spot on.

As usual Alex is mouthing off. In this case, about the topic of the Euro. But he has made no commitment in his statement; just words gauged to appeal to the mass of the Scot's population who have little understanding of economic theory. He is a streetwise politician, shallow and with no genuine feelings for the people of Scotland, other than what they can do for him.

39

A True Scot.,

05/01/2009 13:45:51
40

Well he fits in nicely to the British politcal scene then no wonder he has the opposition by the short and curlies.
Never mind as long as he keeps taking us towards Independence then it will all balance out nicely.
40

Goggsie #,

Fife 05/01/2009 13:58:24
#40 Another politician will take us to Independence, because the Scot's are a treacherous breed and one of his number will seize the opportunity when it arises.
41

A True Scot.,

05/01/2009 14:11:50
42

treacherous breed indeed. We commonly refer to them as unionists.
42

Raymond Thomas Brooke,

Leven Engalnd 05/01/2009 14:17:10
### True Scot
What a miserable b.....d you are ..is this why you call youirself "true Scot"
43

Jimbo2,

05/01/2009 14:31:42
#22 A True Scot.

I agree.

Only problem is, I don't think the UK now meets the criteria demanded for joining the Euro, though they may accept us anyway purely to get us on board.

The the state of the weaker economies mentioned at #25 by Prester John, now also applies to the UK.

As an independent nation, Scotland would not have that problem.
44

carrottop,

Dumfries 05/01/2009 15:30:05
34# Gosh what was I thinking off if the pound and the euro are equal then I get one euro for every pound in my bank account and dont have to use my brain over much, if the pound is worth 1.5 euros then eh... I get 150 euros for every 100 pounds how stupid of me to get all these extra euros. Put simply if a euro buys two sweeties then at the higher exchange rate I would get three sweeties instead of two.

PS if you really are a 'true Scot' are you insinuating that all true Scots are thick?
45

English Bob,

England 05/01/2009 15:31:04
Go for it! Please please please.

So long and thanks for all the shortbread.
46

Jimbo2,

05/01/2009 15:56:47
English Bob?

Wasn't that the name of a character from a western?

If I remember correctly he was portrayed as an obnoxious, loud mouthed, lying, English braggart who has the daylights kicked out of him before being run out of town.

Any similarities?
47

Kenny,,

Glasgow 05/01/2009 15:58:37
The UK is a failed and effectively bankrupt state. Widely recognised as an economic basket case and likely to be worst affected by the recession of the major developed countries.

Only hope for the UK to go begging to the Eurozone.

Only hope for Scotland Independence.
48

Alan B,

05/01/2009 17:01:01
Good to see Salmond advocating the euro.

Scotland would have faired better economically if we had joined the euro a decade ago.

A pity scotland allows itself to be dicatated to by the little england mentality of westminster. We suffer as a result.
49

A True Scot.,

05/01/2009 17:23:56
44

No being miserable is just coincidental.
50

A True Scot.,

05/01/2009 17:30:13
46

Dont be a bigger tool than is necessary. If the we change over from the pound to the euro with the pound having a higher value then the cost of everything in the UK will jump up to reflect the difference in the exchange rates i.e an item costing 1.00 pound or 1.5 Euros will go up to 2 euros or more overnight. Trust me you wont make on penny on any currency change over. The best you can hope for is not to lose anything.
51

A True Scot.,

05/01/2009 17:31:40
45

Can Europe determine which currency the UK can or cannot adopt? I thought that decision rested with Westminster alone?
52

carrottop,

Dumfries 05/01/2009 18:01:15
52# Crikey! that brick wall really hurts.
53

Martyk,

05/01/2009 18:14:15
3; Forward not back. Irelands National debt is the second lowest in Europe both in real terms and per capita. What are the Germans objecting too exactly ? Or are you telling fibs ?
54

Jimbo2,

05/01/2009 18:37:07
#53 A True Scot.

No, that is not the case.

I don't remember the exact figure but if a country's borrowing/debt is above a certain percentage of their GDP they are not allowed to join the Euro. They are also required to show that they have kept debt and inflation in check. I don't think Brown can meet any of this criteria.

It is the reason Hungary were unable to adopt the Euro and Poland had to defer entry until such time as it trimmed it's fiscal deficit.
55

Jimbo2,

05/01/2009 19:09:36
Hi True Scot.

Further to above.

Convergence criteria (also known as the Maastricht criteria) are the criteria for European Union member states to enter the third stage of European Economic and Monetary Union (EMU) and adopt the euro. The four main criteria are based on Article 121(1) of the European Community Treaty. Those member countries who are to adopt the euro need to meet certain criteria.

tinyurl.com/9d8wb7
56

English Bob,

England 05/01/2009 19:31:16
The Richard Harris character in The Unforgiven? Good film I seem to recall. Needless to say I didn't nickname myself after said character. Clint's the man. Anyway no similarities that I can see.

I'm not lying or bragging and I don't give a flying caber whether you think I'm loudmouthed or obnoxious or both. If you're offended by "so long and thanks for all the shortbread" you should be offended.





57

Jimbo2,

05/01/2009 19:43:59
Nah, Bob. no offence taken. Nothing wrong with a bit of tongue in cheek banter.

Happy new year to you.
58

Ken S.,

Reading 06/01/2009 21:12:28
Wanting to be an independent nation and wanting to join in with the Euro are mutually incompatible objectives.

 

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