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 make up the European Union(EU) formed the stinting and Monetary Union(EMU) and began using a common currentness, the euro. Greece joined as of January 1, 2001. The remaining three countries, Denmark, Sweden, and the get together Kingdom have yet to join the EMU any because they do not meet the criteria set in the Maastrict Treaty(the reason establishing the European Union and the economic requirements for admission in the the Economic and Monetary Union) or because they believe that the EMUs costs outweighs the benefits. The use of the euro currency will unite the existing 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 quintette criteria must be pleasant:

*The budget deficit has to be less than 3% of flagrant Domestic Product

*The governments total 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 lowest inflation countries

*Exchange order should be stable

* persistent term interest rates must be in spite of appearance 2% of the three lowest interest rates in EU.

On June 9, 2003 the United Kingdom Government published the assessment of five economic tests which include convergence, flexibility, investment, UK Financial services industry, and the effect on employment. The first condition would require the convergence of the UK economy with that of Europes, so that the UK would be able to live comfortably with the interest rates set by the European Central Bank on a permanent basis. The second condition will sustain whether there is enough flexibility to adjust to change and to unhoped economic...

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