Single
Currency - Economic & Monetary Union (EMU)
What
is EMU?
As
part of Economic and Monetary Union, eleven European
Union countries introduced a single currency - the
euro - on 1 January 1999. These were: Austria,
Belgium, Finland, France, Germany, Ireland, Italy,
Luxembourg, Portugal, Spain and The Netherlands. Greece
joined the single currency on 1 January 2001. In due
course, it will also be introduced in the ten countries
- Cyprus, the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Malta, Poland, Slovakia and Slovenia -
which join the EU on 1 May 2004.
The
United Kingdom has not joined the single currency,
but British firms are still affected, especially those
which buy and sell products in the eurozone. In addition
to this, many UK businesses which do not export or
import may be affected through their supply chains.
UK businesses should continue considering how the
euro affects them and what they should do to
prepare.
What
is the Government's position?
In
principle, the Government is in favour of UK membership
of EMU; in practice, the economic conditions must
be right. The determining factor underpinning any
Government decision on membership of the single currency
is the national economic interest and whether the
economic case for joining is clear and unambiguous.
On the basis of the assessment, the Government will
take a decision on whether the five tests have been
met. If the Government recommends UK entry, it will
be put to a vote in Parliament and then to a referendum
of the British people. Government, Parliament and
the people must all agree.
What
is Government doing to assist preparations?
The
Government has a dedicated unit in the Treasury -
the Euro Preparations Unit (EPU) - to help
UK businesses prepare and raise awareness of the implications
of the euro. The DTI and other government departments
are working closely with the Treasury to ensure business
and public authorities are prepared for the euro.
The
DTI has also recently released a CD ROM which
drives presentations on the euro including case studies
to alert businesses to the implications of the euro.
This is supported by the EuroPlanner,
which is an electronic tool including practical help
for businesses such as a spreadsheet to help firms
set prices in euros. To obtain a copy of the EuroPlanner
please contact your local Business
Link.
Further
advice and detailed information
- A
series of fact sheets and case studies, prepared
by the EPU, on business preparation for the euro
are available by faxing 0845 6010199 and specific
information on business preparations can be obtained
on the Treasury's
Euro website.
- Information
and specific help is available from Business
Links. To contact your local Business Link call
0845 6009006 or visit their website.
- For
information on export markets in Europe please visit
the UK
Trade & Investment website.
- Information
and specific help is also available from Training
and Enterprise Councils, chambers of commerce, trade
associations, banks, accountants and other intermediaries.
- For
considerations when trading internationally contact
SITPRO
(Simpler Trade Procedures Board) on 020 7467 7280
or visit their website.
Contact:
Veronica Haidar
Tel: 020 7215 2295
Fax: 020 7215 2235
E-mail: veronica.haidar@dti.gov.uk
