The volatile exchange rate makes it impossible for businesses to plan. Foreign investors may start cutting off funds and closing plants unless Britain joins soon.
Being inside the single currency is the key admission ticket to European councils. The longer Britain stays outside, the more it will be marginalized.
Joining the single currency would bolster the shaky euro project, whose success is in British interests.
Why Take the Risk?
Britain is way ahead of Europe on economic reform. So why link the British economy more tightly to a Europe still in the throes of structural change?
Loss of Control
The Bank of England is proving a good custodian of the currency. Why switch--especially while the European Central Bank is still suffering severe growing pains?
A battle over the euro would draw attention away from more important concerns such as improving public services and reforming the welfare system.