Posted on 06/09/2003 11:14:10 AM PDT by knighthawk
Chancellor Gordon Brown has confirmed to MPs that Britain would not be joining the euro because his five tests had not been met.
But he outlined a series of measures designed to make sure that at some point in the future the UK would be ready to join the single currency.
He said he would be informing the Bank of England that the current inflation target of 2.5% would be changed, and that he would now be using a new Europe-wide measure of inflation rather than the old Retail Price Index.
Mr Brown told the Commons Europe had to undertake structural and economic reform to forge a transatlantic partnership with the US and Britain would make proposals for that later this week.
Mr Brown said the decision was "one of the most momentous economic decisions our country has to take."
Britain's membership of the euro would lead to lower transaction costs for business, lower exchange rate volatility and greater cross-border trade.
Mr Brown said trade between Britain and the Euro zone could increase by up to 50% over 30 years if the single currency was adopted.
The Chancellor said joining would mean the benefits of lower interest rates for businesses and home owners.
Mr Brown said: "If the economics are right for Britain, we should join."
Mr Brown said the five tests were there to ensure there would be no repeat of the ERM and the Treasury assessments showed that joining the euro in 1999 as some had suggested would have damaged stability.
Mr Brown said trade between Britain and the Euro zone could increase by up to 50% over 30 years if the single currency was adopted.
No one can possibly project that far out.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.