DIVING dangerously to a record low and towards parity with the US dollar, the ailing euro has Britain to blame for its plunge, according to Germany's finance minister.

He claims that Britain's resistance to a new Europe-wide tax on investments - which our government fears would drive capital and jobs out of the City - is harming the new currency.

But while Euro-sceptics will note that in this complaint lies the prospect they fear and warn against - that membership of the common currency will subject us to common tax policies determined by faceless EU bank chiefs - opted-out Britain's stance has little to do with the euro's slide.

For the strength or weakness of all currencies is determined not by harmony or discord over taxes, but by the inexorable world market's view of the economies underpinning them.

The pound and dollar are stronger because their single economies are robust whereas those of euroland are numerous and mixed with some performing well and others badly.

It is this varying hotch-potch that works against the euro's stability and is the concern that ought to govern Britain's decision on whether or not to join.

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