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On 1 January 1999, a new
currency, the euro, was introduced into the European Union as part of EMU.
Twelve member states have established fixed conversion rates between their
existing currencies and the euro. The currencies of these participating member
states now exist only as subdivisions of the euro. It is expected that these
national currencies will be withdrawn on 31 December 2001 and that all notes
and coins in these currencies will cease to be valid tender by 1 June 2002.
Most of the group’s
business in Europe is conducted in the UK, which is not one of the 12
participating member states. Government policy on UK membership of the single
currency was set out by the Chancellor of the Exchequer in a statement to the
House of Commons in October 1997, as restated by the Prime Minister in February
1999 on the launch of the first Outline National Changeover Plan. The
determining factor underpinning any Government decision on membership of the
single currency is whether the economic case for the UK joining is clear and
unambiguous. Because of the magnitude of the decision, HM Government believes
that, whenever the decision to enter is taken, it should be put to a referendum
of the British people. The Government has said that it will produce an
assessment of five relevant economic tests early in the next parliament, which
commences in June 2001, and that both Government and business should make
active preparations to give the UK the genuine option to decide to join.
BT has established a
steering group, with representatives from across each of the lines of business
and supporting group functions, to review the impact of the introduction of
EMU. A project team acts as a co-ordination point to ensure consistency of
approach across the group and that plans are in place to meet agreed business
strategy on EMU.
The group carries on
business in certain of the participating member states and is continuing to
take appropriate steps to adapt its operations to use the euro.
BT is considering the
impact of EMU on the UK business and the associated costs. |
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