The indications are, however, that the UK is unlikely to become a member at an early stage. Besides, if it should decide to join, it will presumably have to satisfy entry requirements in relation to the exchange rate and central bank independence. Sterling has been very strong against the euro, contrary to earlier expectations.
A failure to address these fiscal challenges would expose the United States to serious economic costs and risks. A high and rising level of government debt relative to national income is likely to eventually put upward pressure on interest rates, thereby restraining capital formation, productivity, and economic growth. Indeed, once the economy has recovered from its downturn, fiscal deficits will crowd out private spending.