Only by wholeheartedly embracing monetary union will Europe see the benefits of the economies of scale offered by the single market. Sir Leon Brittan, vice-president of the European Commission, has yet another reason for supporting the euro. French prime minister Lionel Jospin, pushing through the introduction of a 35-hour week in an attempt to cut French unemployment, is hardly likely to agree. Supporters believe the single currency can meet varying expectations. They hold that the policies of low inflation and sound public finances underpinning it provide the background for growth and sustainable jobs.
Opponents say any benefits are massively outweighed by potential costs.
They, too, have a range of objections. From the left, the main argument is that the politically unaccountable European Central Bank will be far too hawkish. From the political right, the argument is twofold. Nigel Lawson, writing in this week's Spectator, is dismissive of Sir Leon's notion that the euro will lubricate structural reform. People say the shocks will force these countries to make the supply-side reforms that will be needed.