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As background, the European Union (“EU”) was formed shortly after WWII to create economic and political cohesion across the continent. The United Kingdom (“UK”) joined this organization in the 1970s. To advance its goals of reducing trade friction, integrating financial markets and creating a stronger presence for the EU in the global economy, the Euro was launched in 1999 as a shared currency. There were initially 11 countries which agreed to use the Euro. By doing so, they effectively relinquished their monetary policy (the ability to raise or lower interest rates) to the European Central Bank. The UK was concerned about giving up this level of control so it elected to retain its currency (Pound Sterling) but remain in the EU.Read more