posted 06-10-2003 01:53 AM            

ahhhh....

Tuesday June 10, 2:17 AM

Britain 'not yet ready' for euro entry
Britain is not yet ready to join the euro, Chancellor of the Exchequer Gordon Brown announced, while holding out the possibility of a referendum on the issue in the next few years.

Three of five economic tests on the potential impact of euro entry, imposed by Brown himself in 1997, had not been successfully met, he told parliament in a verdict that keeps Britain at arm's length from a rapidly integrating Europe.

There was not yet sufficient convergence or sufficient flexibility between the economies of Britain and the euro zone, Brown said, meaning that a third test on future employment, stability and growth could thus also not be met.

However in a clear concession to pro-euro forces within Brown's Labour Party -- including Prime Minister Tony Blair -- the chancellor took great pains to stress that he believed Britain would, and should, sign up in the future.

"Our view that membership in a successful single currency would be of benefit to the British people as well as to Europe is strengthened by the results of our assessment," Brown said.

And in another significant sop to euro fans, Brown also announced that a draft bill would be published in autumn paving the way for a future referendum on ditching the pound in favour of the euro.

This would theoretically allow a plebiscite before the next general election, due by mid-2006 at the latest, if the economic conditions were right.

Under a new government timetable for a possible changeover issued as Brown spoke, euro notes and coins could be circulating in Britain within three years of a decision to try for entry.

However with opinion polls consistently showing Britons lined up two-to-one against losing the pound -- a currency which has served the nation without a break since the eighth century -- this would appear unlikely.

Brown's widely leaked verdict came as a shock to no one, but nonetheless attracted criticism from both sides of the debate.

The main Conservative opposition was predictably brutal, calling it a compromise designed to paper over divisions between Brown and his prime minister and labelling the five tests a sham.

"This whole exercise has been an exercise in deceit," opposition finance spokesman Michael Howard told parliament.

Pro-European business groups also expressed disappointment, with Niall Fitzgerald, chairman of household goods giant Unilever, saying the government should "go further".

"Every year the UK stays out, the greater the difficulties that will be faced in competing for investment across the EU and the more difficult it will be for the UK to remain competitive," he said.

Perhaps wary of this reaction, the prime minister worked the phones in a series of calls to world leaders following the announcement to explain the verdict.

Blair was due to speak with no fewer than nine leaders including French President Jacques Chirac, German Chancellor Gerhard Schroeder and Japanese Prime Minister Junichiro Koizumi, a government spokesman said.

Brown himself undertook something of a sales pitch on the benefits which closer integration in Europe would bring the country.

Joining the euro would save around a billion pounds (1.4 billion euros, 1.6 billion dollars) a year in lower transaction costs to businesses and consumers as exchange rates disappeared, he said.

Additionally, signing up would greatly boost British trade with the euro area, "perhaps to the extent of 50 percent over 30 years."

And while major problems remained in achieving both convergence and sufficient flexibility, two tests were deemed passed, covering the effect on investment in Britain and the impact on the nation's highly lucrative financial services industries.

Alasdair Murray, an economics analyst with the London-based Centre for European Reform, called Brown's speech "a beautifully crafted but wonderfully ambiguous statement."

"The pros will seize on the fact that he talked of the significant long-term benefits of euro entry," said Murray.

"The antis will of course say but he hasn't committed to anything at all.

"There's no referendum date, there's no clear sign that any of these problems will be resolved in the near future."

posted 06-10-2003 01:57 AM            

I expect the Euro will eventually be forced apon the British citizen sooner or later.

Unfortunately, the victory will most likely be short lived.

Then it will be OUR turn.

Will the new currency be called the PAN AMERICAN?

posted 06-10-2003 02:27 AM            

while we are a public issue...anyone know of a good p2p site ?