Reference no: EM133035080

CASE STUDY-US INDIRECT TAX

Having decided through a Parliament mandate to exit from the EURO Club, what would be the impact for the United Kingdom in the next 1-3 years.

When the euro was introduced in January 1999, the United Kingdom was conspicuously absent from the list of European countries adopting the common currency. Although the previous Labor Government led by Prime Minister Tony Blair appeared to be in favor of joining the Euro club, the Tory Government was not in favor of adopting the Euro and thus giving up monetary sovereignty of the country. Public opinion is also divided on the issue.

Having decided through a Parliament mandate to exit from the EURO Club, the matter is of considerable importance for the future of the European Union as well as that of the United Kingdom. The United Kingdom, with its sophisticated finance industry, exited from the Euro Club and now may propel the GBP into a Global currency status rivaling the U.S. dollar. The United Kingdom for its part will firmly go aggressive in the process of economic and political developments and also enhancing on its sovereign status in its traditional balancing role.

Investigate the political, economic, and historical situations surrounding British Exit from the Euro club including the impact of non-participation in the European economic and monetary integration.

Write a assessment of the prospect of Britain having exited the euro club.

In doing so, assess from the British perspective, among other things,

(i) potential benefits and costs of not adopting the euro,

(ii) economic and political constraints facing the country, and

(iii) the potential impact of British non-adoption of the euro on the international financial system, including the role of the U.S. dollar.