ith the resolution of the long standing Cyprus dispute. Pope Benedict XVI, the head of the Roman Catholic Church, also opposes Turkey becoming a member state because of its predominantly Muslim population. * p> As well as, there are some cases where there are advantages and disadvantages of joining to European Union. EU is international entity where many states united and became as Union. In such cases all countries who are members of EU have sovereignty, independence, flag, nationality, background, culture, mentality, tradition and some other criteria which are not mentioned make a sense that they are different but in order to avoid preceded incidents of history, they have united to go hand in hand.
Items that I mentioned above and according to it disadvantages follow as:
В В
Disadvantages
1. The instability of the system.
Throughout most of the 1980s the UK refused to join the ERM (Exchange rate
mechanism). It argued that it would be impossible to maintain exchange
rate stability within the ERM, especially in the early 1980s when the
pound was a petro-currency and when the UK inflation rate was consistently
above that of Germany. When the UK joined the ERM in 1990 there had been
three years of relative currency stability in Europe and it looked as
though the system had become relatively robust. <В
2. Loss of Sovereignty. p> On the political side, it is argued that an independent central bank is
undemocratic. Governments must be able to control the actions of the
central banks because Governments have been democratically elected by the
people, whereas an independent central bank would be controlled by a non
elected body. Moreover, there would be a considerable loss of sovereignty. p> Power would be transferred from London to Brussels. This would be highly
Undesirable because national governments would lose the ability to control
policy. <В
4. Deflationary tendencies. p> Perhaps the most important economic argument relates to the deflationary
tendencies within the system. In the 1980s and 90's France succeeded in
reducing her inflation rates to German levels, but at the cost of higher
unemployment, for the UK, it can be argued, that membership of the ERM
between 1990 and 1992 prolonged unnecessarily the recessional period. This
is because the adjustment mechanism acts rather like that of the gold
standard. Higher inflation in one ERM country means that it is likely to
generate current account deficits and put downward pressure on its
currency. To reduce the deficit and reduce inflation, the country has to
deflate its economy. In the UK, it could be argued that the battle to
bring down inflation had been won by the time the UK joined the ERM in
1990. However, the UK joined at too high an exchange rate. It was too high
because the UK was still running a large current account deficit at an
exchange rate of around 3 Dm to the pound. The UK government then spent
the next two years defending the value of the pound in the ERM with
interest rates which were too high to allow the economy to recover. Many
forecasts predicted that, had the UK not left the ERM in Sept 1992,
inflation in the UK in 1993 would have been negative (Ie prices would have
fallen). The economic cost of this would have been continued unemployment
В
at 3million and a stagnant economy. When the UK did leave the ERM and it
rapidly cut interest rates from 10% to five and a half %, There was strong
economic growth and the current account position improved, but there was
an inflation cost. br/>
EU is not only economic and political union but traditional and cultural aspects includes as well. But today situation is changing and EU entity is going to influence it and gradually Political Union might be achieved by EU, then all values ​​beliefs, cultures, traditions will be the same because might be presented as a one nation. According to my outlook these values ​​and beliefs of each nation is important because, it what does motivates them as a nation (country), however the union drains them. From economy point of view is good to stabilize the economy but they ignore subjective matters as I have mention in previous statements but objectives matters have been achieved but have not finalized the union because Political Union not achieved, which is the hardest stage and further one. br/>
However, if take into consideration other points, which are advantages then we can see also some advantages that EU benefits in fact. As follows:
Advantages
Transaction costs will be eliminated.
