green pound meaning
noun
The agreed value of the pound used to express EU farm prices in sterling and to measure the level of Britain's contribution under the Common Agricultural Policy
The agreed value of the pound used to express EU farm prices in sterling and to measure the level of Britain's contribution under the Common Agricultural Policy
[Economics]
A notional unit of currency, used as part of the European Community's Common Agricultural Policy (CAP). The green pound was devised when the shift to flexible exchange rates in the early 1970s led to the prices of farm products fixed under the CAP becoming unstable when translated into UK pounds sterling at market exchange rates.
Examples
More: Next- The introduction of the euro in 1999 also ended the use of green exchange rates such as the green pound.
- Between 1992 and 1995 the green pound was devalued by over 20 %, raising Common Agricultural Policy prices by over 27 %.
- The green pound ended with the introduction of the euro in 1999, since when all payments have been based on the euro exchange rate.
- Some economists argue it is designed to prevent a revaluation of the " green pound rate, " which would reduce the level of EU subsidies paid to Irish farmers.
