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Title: To Join Or Not To Join

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Subject: History
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Date: March 16, 1999
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Length: 5 / 1336
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In 1997, when the Labour party gained control of Parliament, they agreed to sign the Social Chapter of the treaty; however, they did not adopt the Euro. In order to join the EMU, the government feels the UK should pass the following five tests: - Convergence: Are business cycles and economic structure compatible so that others and could we live comfortably with euro interest rates on a permanent basis? - Flexibility: If problems emerge is there sufficient flexibility to deal with them? - Investment: Would joining EMU create better conditions for firms making long-term decisions to invest in Britain? - Financial Services: What impact would entry into EMU have on the competitive position of the UK’s financial services industry, particularly the City’s wholesale market? - Growth, stability, and employment: In summary, will joining EMU promote higher growth, stability and a lasting increase in jobs? Labour is committed to ensuring all these criteria are met before they decide to join the EMU...

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At the lecture with James Stewart, we learned the EU – and the Euro – would not exist without France and Germany. However, because they are the powerhouses behind the Union it allows them to “bend the rules’ in a way other minor countries are not able to. Regulations were set forth to make sure all participant countries were meeting the established criteria...

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