Brown drops euro hint.Byline: John Deane CHANCELLOR Gordon Brown last night acknowledged the potential benefits of euro membership - but insisted Britain should not join unless the economic conditions are right. Mr Brown will formally unveil the Treasury's long-awaited assessment of the five economic tests The five economic tests are the criteria defined by the United Kingdom Government that are to be used to assess the UK's readiness to join the Eurozone and adopt the euro as its currency. In principle, these tests will be distinct from any political decision to join. for British membership on June 9, but is expected to say that they have not yet been met. In a speech to the annual dinner of the Confederation of British Industry The Confederation of British Industry is a not for profit organisation incorporated by Royal charter[1] which promotes the interests of its members, some 200,000 British businesses, a figure which includes some 80% of FTSE 100 companies and around 50% of FTSE 350 in London, Mr Brown made clear he would not be cajoled into backing British membership of the single currency for political reasons. ``If the economics are not right, we should not join,'' Mr Brown said. The Chancellor told leading business figures that the Government would do nothing that puts at risk the economic stability built around its May 1997 decision to give independence to the Bank of England Bank of England, central bank and note-issuing institution of Great Britain. Popularly known as the Old Lady of Threadneedle Street, its main office stands on the street of that name in London. . And he recalled Britain's ill-fated two-year involvement in the Exchange Rate Mechanism in the early 1990s, which ended amid the mayhem of BlackWednesday. Mr Brown insisted: `` We will reject the view of those who would rule out membership of the single currency even if it were in the national economic interest to join. ``Ruling out membership on grounds of dogma not economics would in my view be damaging for investment, jobs and business. ``But we similarly reject those who would urge us to join irrespective of irrespective of prep. Without consideration of; regardless of. irrespective of preposition despite the rigorous assessment of the five tests that define the long-term national economic interest. ``I believe that membership of the euro can bring clear benefits to Britain in trade,investment and growth - benefits to British business, consumers and jobs. And our assessment will set them out. But I also know that to repeat the ERM (Enterprise Relationship Management) An umbrella term with many shades of meaning over the years. It may refer to the management of information from any or all of an organization's customers, suppliers, business partners and employees. mistake and take risks with stability is not in the national economic interest. ``So if,basedon the five tests assessment, the economics are right we should join. If the economics are not right, we shouldnot.'' And Mr Brown highlighted the Bank of England's success in encouraging a stableeconomy. ``I am confident that, tested in adversity, our monetary and fiscal regime built around the Bank of England is demonstrating its credibility and resilience. And I can assure you that nothing will be done in future that puts that basic stability at risk.'' Mr Brown stressed that the EU should beoutwardlooking. ``Instead of seeing Europe as a trade bloc sheltered from the rest of the world, with a focus almost exclusively on its internal markets and agriculture,our policy decisions for Europe must now be made in this new context: an ever more open and extensive globalisation in which Europe looks outwards.'' He wants to see reform of the Common Agricultural Policy, plus measures to combat unemployment across the zone. The Chancellor also dismissed all talk of cross-EU tax harmonisation: ``The single market neither requires tax harmonisation nor centrally imposed one-size-fits-all regulations.'' Mr Brown also called for the resolution of transatlantic trade disputes. He said the Government will soon publish research suggesting that breaking down tariff barriers and barriers to trade in services Trade in Services refers to the sale and delivery of an intangible product, called a service, between a producer and consumer. Trade in services takes place between a producer and consumer that are, in legal terms, based in different countries, or economies, this is called in Europe could increase employment by one million jobs, raise growth by 2pc in Europe and up to 1pc in America. |
|
|||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion