The United Kingdom (UK) has been taking a unique position in regard to monetary integration in Europe. Europe has been deepening integration, and finally realized a single currency, the euro. Although the UK was already a member state of the European Union (EU) at this time, it has not replaced the pound sterling with the euro. This position is currently shared only with Denmark. In a simple explanation, the UK wishes to maintain autonomy in monetary policy, not following the European Central Bank (ECB) by the adoption of the euro.
This study examines more fundamental reasons for the UK's reluctance toward European monetary integration. In this study, I look at both domestic and international factors. The UK government has faced the oppositions from the British public at a domestic level. On the other hand, it has pursued self-determined diplomacy at an international level, swaying between the U.S. and Europe. This study further examines what shape the factors in detail, and tries to find the implications for East Asia that has pursued economic integration since the Asian financial crisis in 1997.