The Governor considers the UK position on EMU, noting that uncertainty about whether the United Kingdom would participate at the start was helpfully dispelled by the Chancellor’s statement on 27 October. This statement provides greater clarity, if not absolute certainty, about the timescale and conditions in which to make preparations for EMU, and together with the Government’s commitment to both fiscal and monetary stability, on lines that run parallel to the macroeconomic discipline of EMU, it provides a solid foundation for a positive and constructive relationship between the United Kingdom and the initial members of EMU. The Governor concludes with a description of the Bank’s contribution to EMU preparations.
UK monetary framework and preparations for EMU