Pound Euro     

The euro came into effect on January 1st 1999. At that time, the pound euro exchange rate was about 1.50 euros to the pound. Between 1999 and 2002 on the foreign exchange market the pound continued to rise in value against the euro to an all-time high of 1.60 euros. Between 2002 and 2007 the euro gained strength and/or the pound weakened to around 1.46 euros.

For the first eight years of the euro's existence, Britons rushed to take advantage of low property prices in France and Spain. Not only were property prices much lower, but the cost of living was lower too. We'd never had it so good. Sadly all good things must come to an end, and that's just what has happened since 2008, when the pound dipped first to 1.22 euros, then progressively on downwards until at the end of the year the pound was precious close to parity with the euro. It seemed that everyone was blaming Britain for the world's economic woes!

During the first five months of 2010, the pound rose and fell between 1.08 and 1.17 euros, mostly staying around the 1.12 mark. With talk of a hung parliament in May 2010, the money markets were not kind to the pound. Since the end of May 2010, however, with the new coalition government taking a stronger hold on the economy than was previously the case, the pound has begun to fare rather better. As I write (25th June 2010) the pound stands at 1.217 euros and the trend (hopefully) seems to be upwards at present. All we can do for now is hold our breath and hope that the present increase in the value of the pound will continue, and eventually reach its true value against the euro.

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