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, the UK Government believes that, whenever the decision to enter is taken, it should be put to a referendum of the British people. The UK Government has said that it will produce an assessment of five relevant economic tests in this parliament and that both the UK 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 has adapted the operations in those countries to the introduction of the euro.

BT is considering the impact of EMU on the UK business and the associated costs.