HISTORIC PRESS RELEASE : Chancellor Launches Single Currency Advisory Group [September 1997]

The press release issued by HM Treasury on 11 September 1997.

Chancellor Gordon Brown today launched an advisory group to examine the practical implications of EMU, for business, which will arise whether or not the UK joins the single currency.

Meeting representatives of the UK business community and other interested parties, including the TUC and the Consumers’ Association, at No 11 Downing Street, the Chancellor proposed setting up working parties to look at particular issues and
for these then to report back to the main group.

The Chancellor said:

“The  single currency will have far reaching practical implications for British business whether or not the United Kingdom joins. It is vital that firms are prepared for those implications. A better prepared business sector will be more competitive in the changing economic landscape of Europe.

“The Advisory Group will provide a two way channel of communication between the  Government, large and small firms, employees’ representatives and other interested
bodies. It will allow organisations to discuss how best to meet the challenges and opportunities that the single currency will bring whether or not we join and  identify
areas where the Government might help.

“Working parties examining areas of specific concern will allow us to examine these implications in detail.

“It will allow the Government to represent British interests effectively in the continuing discussions in Brussels about the practical arrangements for EMU.”

Working parties will be set up to consider detailed practical questions, such as:

Preparation lead times for firms : what are the major practical changes that firms would face and how long would it take them to adapt ?

Introduction of euro banknotes and coins: what are the ideal dates for introducing  new notes and coins ?

How does this fit with the legal rules governing the introduction of the euro ?

What timing would suit countries joining later ?

Information technology : what changes are needed and when?

Euro usage if the UK is outside the single currency : outside the financial markets, which business sectors would use the euro and to what extent ?

Pricing arrangements : how would consumer interests be protected without placing unnecessary burdens on business?

Relations with public authorities : how would public authorities – eg tax authorities –  deal with the change?

Business legislation and related issues : does business legislation need changing and are  guidelines needed ?

Information for business and consumers : do businesses and consumers need more information and who should provide it ?

The working parties will begin their work within the next couple of weeks. They will report back to the main advisory group before its next meeting – provisionally scheduled for December. Progress in the working parties and Advisory Group will be made public.