§ Mr. WilkinsonTo ask the Chancellor of the Exchequer what assessment his Department has made of the impact on employment of changes in the petro-currency status of the national currency upon the United Kingdom's accession to the euro zone, with particular reference to periods of international crisis. [28742]
§ Mrs. Liddell[holding answer 12 February 1998]: The Chancellor has set out the five economic tests which will be used to assess whether it is in the UK's economic interest to join the single currency, and has made it clear that the bottom-line is the impact on UK employment and growth. The Treasury paper "UK Membership of the Single Currency: As Assessment of the Five Economic Tests" (published in October 1997) sets out the factors that would need to be considered, and identifies the UK role as an oil exporter as one of these factors.
§ Mr. Gordon PrenticeTo ask the Chancellor of the Exchequer what estimate he has made of the extent to which United Kingdom industry and commerce will price their goods and services in the euro after its introduction but before the decision is taken on United Kingdom membership. [26809]
§ Mrs. LiddellThe Chancellor of the Exchequer has not made any estimate of the extent to which United Kingdom industry and commerce will price their goods and services in the euro.
However, the work of the Business Advisory Group indicates that the euro is likely to be used more widely by business than other foreign currencies are today. Firms with operations in, and firms that export to, countries which join the single currency are most likely to decide to price their goods and services in euro. In addition, although the euro will not be legal tender in the UK in 1999, firms will be able to use it here for various commercial purposes if they wish.