The big debate between the Chancellor and the Prime Minister over Britain’s euro membership is still unresolved. Within the Treasury, some influential voices argue that Britain does not lose out by delaying. Surely it makes sense, they say, to see how the system survives in bad times, as well as good, before deciding to go in – especially since we have a carefully negotiated opt-out.
This is always a tempting argument. It combines the Whitehall doctrine of unripe time with the natural instinct of the cautious politician to delay any decision that will alienate someone. However, it is surely wrong. There are real economic and political costs in Britain’s delay.