European Monetary Union and United Kingdom

On January 1, 1999, eleven (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxumbourg, the Netherlands, Portugal, and Spain) out of the fifteen European countries that mend up the European Union(EU) formed the stinting and Monetary Union(EMU) and began apply a common currentness, the euro. Greece substanceed as of January 1, 2001. The remaining common chord countries, Denmark, Sweden, and the get together Kingdom behave yet to join the EMU any because they do not meet the criteria slew in the Maastrict Treaty(the reason establishing the European Union and the economic take onments for introduction in the the Economic and Monetary Union) or because they believe that the EMUs be outweighs the benefits. The use of the euro currency will unite the existing fellow member states creating a European super nation this will have an effect on individuals, businesses, economies and governments. Before Britain adapts the Euro currency the following five criteria must be pleasant: *The budget deficit has to be less than 3% of flagrant Domestic crossway *The governments join debt has to be less than 60% of unrefined Domestic Product *Inflation has to be less than 1.5% higher than the ordinary of the net inflation countries *Exchange order should be stable * contumacious term pursuit rates must be in spite of appearance 2% of the three lowest interest rates in EU.

On June 9, 2003 the United Kingdom presidency published the assessment of five economic tests which include convergence, flexibleness, investment, UK financial services industry, and the effect on employment . The first condition would require the conv! ergence of the UK economy with that of Europes, so that the UK would be able to vital comfortably with the interest rates set by the European Central Bank on a permanent basis. The imprimatur condition will sustain whether there is enough flexibility to adjust to change and to unhoped economic... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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