Brown plans EMU-debate

Brown Launches Euro Debate

Mr Brown, speaking to the Royal Institute for International Affairs at Chatham House in London, heralded the publication of a report by economics professor Lord Currie, setting out the arguments for and against the currency. Lord Currie is the director of the Centre for Economic Forecasting. The report does not come down on either side of the argument, but lays out both sides of the case. Mr Brown's view is that publication will help promote a better informed and more reasoned debate on EMU.

In his speech, the Chancellor announced Treasury plans to publish a guide next week for business on the practical implications of economic and monetary union (EMU).

The guide for business on the practical implications of EMU is a response to growing demands from companies for more information from the Government on the single currency. It will focus on the practical and strategic effects on business of EMU, whether or not the UK decides to join.

The guide will be backed up by a new advisory panel which will seek to develop a dialogue with and provide advice to business and public sector organisations on the single currency. The panel will include representatives from the Confederation of British Industry and other relevant bodies.

Mr Brown stressed that the government had not ruled out for Britain to join monetary union with the first wave of countries in January 1999. But he reaffirmed the Labour Government's belief that "formidable obstacles" still exist. He said the Government remained convinced that there should be no fudging of the convergence criteria spelling out the rules for membership of the proposed new currency.

The Chancellor spoke of the Labour Government's "positive" approach to Europe, which would encourage an informed debate about where Britain's national interests lie. He said this was in sharp contrast with the previous Tory Government's "dogmatic" approach.

Mr Brown also said that Britain is now uniquely placed to influence the EMU debate in Europe even though the UK is unlikely to enter in the first wave of monetary union.

The Chancellor's speech comes just days ahead of a CBI survey of its members which is expected to come down in favour of Britain signing up to the single currency.