§ Mr. HoyleTo ask the President of the Board of Trade what assessment she has made of the effects of European Monetary Union on the motor vehicle retail sector. [42047]
§ Mr. BattleEuropean Monetary Union will affect the business environment for firms in all sectors. The setting of inflation targets and interest rates by the European Central Bank will affect the macroeconomic situation, and barriers to trade between member states will be removed by the elimination of exchange rate barriers and currency transaction costs. EMU should also increase the transparency of prices across the euro zone, a point of particular interest to the vehicle sector. Businesses in all sectors should be considering their marketing and pricing strategies in the light of this new environment, as well as the practical implications of the change for the way in which they do business.