HISTORIC PRESS RELEASE : EMU business advisory group recommends preparations for single currency [January 1998]

The press release issued by HM Treasury on 30 January 1998.

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.