13/98
30 January 1998
EMU BUSINESS ADVISORY GROUP RECOMMENDS PREPARATIONS FOR SINGLE CURRENCY
UK firms should consider carefully how changes to the European business environment following the introduction of the single currency on 1 January 1999 will affect them before they address the practical implications, Chancellor Gordon Brown's Business Advisory Group on EMU recommended in a report published today.
Welcoming the report, Mr Brown said :
"The report from the Business Advisory Group underlines the importance for all businesses of gearing up to meet the challenges which they must address before the single currency is introduced at the end of the year. Introduction of the euro provides both opportunities and challenges which must be addressed effectively whether or not the UK joins the single currency.
"A wide range of representatives from all sectors of commerce and industry contributed to the report. It comprises the practical views of those who will need to take the action about how they believe business will be affected and what must be done if business is to take maximum benefit from the changes ahead.
"We shall take close account of their views in the coming months as we continue to work closely with British business to ensure that it can successfully anticipate and prepare for the changing economic environment within Europe."
The report is a summary of the findings of working parties to the Advisory Group. It is not a statement of the Government's views, but represents the assessment of the Advisory Group, which includes the CBI, British Retail Consortium, British Chambers of Commerce, the Federation of Small Businesses, the Institute of Chartered Accountants and the TUC as well as other interested bodies such as the Consumers' Association.
The Advisory Group addressed issues such as information technology, legal and tax implications, accounting issues, an information campaign and arrangements required if the UK decides to join the single currency. Its recommendations cover issues such as: the provision of targeted information to business likely to use the euro; the practicalities of dealing with the euro for trading and retail purposes; and the strategic implications of the single currency.
NOTES TO EDITORS
1. The setting up of the Business Advisory Group was announced on 24 July 1997, when the Chancellor published the Treasury guide "EMU: Practical Information for Business) (HMT press release 87/97)
2. Eight working parties, reporting to the Business Advisory Group, were set up to consider detailed practical questions arising from introduction of the single currency following a meeting of representative organisations chaired by Chancellor Gordon Brown at No 11 Downing Street on 11 September 1997 (HMT press release 105/97).
3. Today's report sets out the findings of this Advisory Group and its working parties. Copies of the report are available free to members of the public from the Treasury Public Enquiry Unit on 0171 270 4558.
4. Copies are being sent to those trade and business associations involved in the advisory process.
6. Media enquiries should be addressed to the Treasury Press Office on 0207 270 5188.