Freeway - Artikelns namn

The EMU-Good or bad?
EMU stands for the economical and monetary union. That means that all the countries which participate have the same currency and monetary policy. The rates and the access on money is determined by a common central bank. The money gets the same value in all member countries. Our examination questions if the EMU is positive or negative for a country, in this case Sweden. In September 14 th this year Sweden is going to have a popular vote about this. It’s obvious that a Swedish membership has both advantages and disadvantages. But what weight’s the most? Should we vote yes or no?
The prices on certain goods will fall in the event of a membership, certainly when it comes to capital goods, i.e. more expensive things that you need in the household. The reason is that it’s easier to compare prices between countries with a single currency. Therefor the competition will increase. It will also be easier to buy things by mail order and on the Internet. This will force the Swedish companies to lower their prices on goods that are more expensive than in other EMU-countries. Those against a membership say that it’s not the currency, that is the obstacle to buy inexpensive goods. It’s already easy to trade with credit cards over the Internet. A membership would also mean that we don’t need to exchange money when we travel abroad within EMU. And you don’t get the exchange expenses. When the currency risks disappears, the interest lowers. The Swedish house interest will get about as low as in the remaining EMU-countries. It will be cheaper to get loans, which means lower housing costs. Those against a membership say that it won’t be cheaper to borrow money abroad than it is today. Those that loan money in another country would have to pay risk premium, since the country takes an even bigger risk than when they borrow money to one of their own citizens. Single currency gives mutual taxes, says the opponent. Since Sweden has considerable higher interest rate than other countries, Sweden will be forced to lower the interest. Then the public sector gets even smaller, it would affect the people who already have low standards in the community. A person who wants a membership says that the membership won’t bring joint interest. They mean that the exchange of commodities, consequently the EU, will bring joint interest. Those against mean that the high wage earner will be winners in a membership. The union will increase the salary differences in Sweden. Since the currency risks in the event of a membership will disappear, is the money safe in all EMU countries.
Summing up arguments
Pro membership:
• Lower prices • It gets easier and cheaper to travel abroad • It gets cheaper to take a loan
Against a membership:
• Sweden will be forced to place the interest in an equal footing with the interest in the remaining EMU-countries • EMU is for the elite • EMU encourages dodge payment of the interest