In 2001 the then Goldman Sachs economist Gavyn Davies reportedly told Tony Blair that he should "wait for the dollar to fall and the euro to rise,” before thinking about joining the Euro. Seven years on and the foreign exchange markets have duly obliged and we find Sterling at its lowest ever level against the Euro. Many Europhiles have long argued that joining the Euro would help the UK by allowing it to have the same level of inflation but with significantly lower interest rates.
As Britain enters an economic downturn it might be just the time to argue for Euro entry by emphasising the benefits to the UK economy and to the average householder. It would also create an almighty headache for David Cameron.