A month ago everyone was talking about the strength of the pound and how it would ensure a great summer season in Majorca. Tourists would have more cash to spend thanks to a favourable rate of cash. The pound tumbled when London mayor, Boris Johnson, announced that he would be joining the “breakaway group.” Boris's move meant that London became a cheaper holiday destination but all of a sudden Majorca became expensive again. Thanks! Unfortunately, from now until June we can look forward to a long period of political unstability. While I agree that we should have a referendum on Britain's European Union membership, I worry about the economic backlash. Britain appeared to be sailing along quite nicely with strong economic growth and a good rate of the exchange against the single currency. But in the space of five days everything has changed. Now, politicians will be quick to say that it is just a short-term fall but tell that to people who have saved up for months for their holiday in the summer and now they discover that their pound is worth considerably less than it was a month ago. And the economic fallout, I suspect, will continue right up until the referendum in June. Lets face it. The chances of Britain leaving the European Union are slim. Labour is backing the European Union and so is the SNP and the Liberal Democrats. The Conservatives are divided over Europe but we shouldn't all have to pay for it.
Weak sterling
25/02/2016 00:00
Also in News
- Spain wants Britons to show they have 113.40 euros, £97, per day for their holidays
- Major security alert at Mallorca airport, surprise landing of flights from Morocco and Namibia
- Big changes on the horizon when Britons travel to Mallorca
- Over two hours for Britons to get through Palma airport queues
- Living in a motorhome in Palma: "It'll only get worse"
5 comments
To be able to write a comment, you have to be registered and logged in
What you need to remember it's not political party's or business leaders who are going to decide the fate of in or out its the man in the street and when you can't get a hospital appointment a GPs appointment a school or a home because we have no control over who comes in then you need to wake up and smell the coffee trade will continue weather we are in or out especially as we are one of the biggest buyers of mercs bmw vws Europe can't afford not to
Unfortunately, Steve, the pro tax people only think about the numbers and not where tourists come from. A lot come from euroland, so they won´t notice any difference if the GBP goes up or down, and the locals attitude is that it´s our fault for not joining the euro. Short sighted, but that´s the way it is.
Talk of Brexit hasn't helped either. Sterling has fallen around 10% in that time against the Euro. Still, it may help to wipe the smiles off the faces of the pro-tourist-tax lobby.
The pound has steadily weakened since it had to fix against the euro introduced in 2002. This was fixed at €1=0.66p. It has never got anywhere near that since. Late last year it did touch on 69p and the UK government raved about it's strength against incompetent euroland. I for one have always lost one way or another on exchange rates. Print more money has always been the UK's answer. Say what you like about the EU and the money it squanders, but at least Mrs. Merkel - love her or loathe her - for one has always done what she can to keep the euro strong. Apart from all that - sterling always dips for the summer holidaymakers here. I'm sure it's conspiracy engineered by someone.
Slim.? Don't kid yourself,most of the UK newspapers tell a very different story,so do the polls. As for the strength of the pound,there have always been ups and downs,have you conveniently forgotten when the pound was virtually one for one against the euro not that long ago.?