Sovereign solution
Sir: The debate over a unified currency for the European Community, one of the major topics at the recent Inter- governmental Conference in Rome, cen- tres primarily on two ideas: convertibility and sovereignty. Convertibility should simply mean that one pound sterling equals one deutschmark and that all of the EEC national currencies are on a one-for-one basis. The use of the ecu as a common currency — whether 'hard' or 'half-baked' — should be rejected as an unnecessarily artificial way of accomplishing this objec- tive.
On the essential and contentious subject of sovereignty, by joining the ERM we have already effectively eliminated the ability to buy the loyalty of the electorate by manipulating sterling's value, and that change should be warmly welcomed. Mov- ing control of the money supply from the politicians to the central bankers (as our Bank of England) in the form of a Euro- pean Central Bank is not only democrati- cally accountable but also excellent busi- ness sense. The ECB would print the notes (bearing our own national symbols) which would be legal tender throughout the EEC, just as Scottish notes are in England. A single EEC currency value, yet 12 national currencies — sovereignty and convertibility at once.
Mark Johnson
191 Seven Sisters Road, Finsbury Park, London N4
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