The UK soon to have the euro?

The euro-sceptic newspaper The Daily Telegraph comments on the statement by EU Commission President José Manuel Barroso that "The people who matter in Britain" think the country should adopt the euro: "There speaks the authentic voice of the euro elite. ... The Barroso theory is also supported by the tumbling value of sterling against the euro - down by close to 15 per cent since the start of the year. At this rate of descent, the two currencies will align around March 2010, the eve of the general election. Could this prompt a fresh attempt to join the eurozone? Unfortunately for single currency supporters, there is a fly in the ointment. Under the Maastricht convergence criteria, successful applicants should have a debt/GDP ratio not exceeding 60 per cent. The Treasury admits the ratio is heading towards 57 per cent, but that excludes PFI projects, pension liabilities and the bail-out of the banks. Add in those and our debt ratio is already double the limit."

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