UK manifesto: European and Foreign Policy: Securing a stable foundation for EMU

The issue of monetary union within the EU is one of the most critical facing the government of the United Kingdom during the coming parliamentary term. European Monetary Union (EMU) imposed under the wrong conditions could have disastrous consequences for the economies of all member states and the EU as a whole, and could jeopardise the future of the EU itself. It is dangerous to impose EMU when the EU is undoubtedly not ready for it. Conversely, a "wait-and-see" policy endangers the stability of the EU and reveals a conspicuous lack of both intelligence and purpose in policy.

Clearly, monetary union is desirable in that it provides stability for internal and international trade, it disallows predatory speculation on a national currency, and it disallows one nation from artificially manipulating its currency for unfair trade advantage.

Only the invincible evolutionary power of Natural Law can promote the tendencies, wishes, and needs of each country at the same time as strengthening the collective interests of the Union as a whole

Monetary union must be based on true stability of each currency, which in turn is based on the stability and strength of the national economy. Equally, economic stability cannot be artificially contrived - as is clear from the turbulent economic history of each EU country during the past few years. Economic stability and dynamism can be created only by strengthening the real basis of the economy, which means unfolding the full creative potential of the population, and creating coherence, integration, and dynamism in the collective consciousness.

Therefore the Natural Law Party's prescription for successful financial union is:

create coherence in the collective consciousness of the United Kingdom (and other member states);
verify the effectiveness of this strategy by monitoring economic stability and a quality of life index;
measure the stability of the pound, as well as that of the other EU currencies;
link the currencies by an exchange rate mechanism (ERM) only when their stability has been demonstrated;
finally, when these criteria are met (i.e. when the stability of the ERM and that of all the participating currencies is clearly demonstrated) and all nations agree on it, introduce a single currency.

The Natural Law Party proposes that the European currency, once introduced, would be used for international trade and transactions. Each country would retain its own currency for internal transactions, since the traditional currency of each nation is such an important symbol of sovereignty.

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