The UK and the Euro in 2003.

The first 200 words of this essay...

The UK and the Euro in 2003

On January 1, 1999, a single European currency (the euro) was introduced in 11 European Union countries:

Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Greece joined the single currency on January 1, 2001. Britain, Denmark and Sweden being the EU nations that did not adopt the Euro.

On January 1, 2002, euro banknotes and coins replaced the national currencies of the twelve participating European countries.

At this time the British government declared that before they would fully integrate into the EMU that a national referendum would need to be held following the completion of five economic tests.

The Chancellors 5 economic tests set back in 1997 are: 1

* Sustainable convergence between Britain and the economies of a single currency;

* Whether there is sufficient flexibility to cope with economic change;

* The effect on investment;

* The impact on Britain's financial services industry;

* Whether it is good for employment

Each test assesses whether the British economy will benefit or suffer from the move

Throughout this year