HM Treasury News Release
105/97                                        11 September 1997 
_________________________________________________________________
                                
               CHANCELLOR LAUNCHES ADVISORY GROUP
                                
Chancellor Gordon Brown today launched an advisory group to
examine the practical implications of EMU, for business, which
will arise whether or not the UK joins the single currency.

Meeting representatives of the UK business community and other
interested parties, including the TUC and the Consumers'
Association, at No 11 Downing Street, the Chancellor proposed
setting up working parties to look at particular issues and
for these then to report back to the main group. 

The Chancellor said:

     "The  single currency will have far reaching practical
     implications for British business whether or not the
     United Kingdom joins. It is vital that firms are prepared
     for those implications. A better prepared business sector
     will be more competitive in the changing economic
     landscape of Europe.

     "The Advisory Group will provide a two way channel of
     communication between the  Government, large and small
     firms, employees' representatives and other interested
     bodies. It will allow organisations to discuss how best
     to meet the challenges and opportunities that the single
     currency will bring whether or not we join and  identify
     areas where the Government might help.

     "Working parties examining areas of specific concern will
     allow us to examine these implications in detail.

     "It will allow the Government to represent British
     interests effectively in the continuing discussions in
     Brussels about the practical arrangements for EMU."

Working parties will be set up to consider detailed practical
questions, such as :

    Preparation lead times for firms : what are the major
     practical changes that firms would face and how long
     would it take them to adapt ?

    Introduction of euro banknotes and coins: what are the
     ideal dates for introducing  new notes and coins ? How
     does this fit with the legal rules governing the
     introduction of the euro ? What timing would suit
     countries joining later ? 

    Information technology : what changes are needed and when
     ?

    Euro usage if the UK is outside the single currency :
     outside the financial markets, which business sectors
     would use the euro and to what extent ?

    Pricing arrangements : how would consumer interests be
     protected without placing unnecessary burdens on business
     ?

    Relations with public authorities : how would public
     authorities - eg tax authorities -  deal with the change
     ?

    Business legislation and related issues : does business
     legislation need changing and are  guidelines needed ?

    Information for business and consumers : do businesses
     and consumers need more information and who should
     provide it ?

The working parties will begin their work within the next
couple of weeks. They will report back to the main advisory
group before its next meeting - provisionally scheduled for
December. Progress in the working parties and Advisory Group
will be made public. 


Notes to Editors

1.   The setting up of the advisory group was announced on 24
July 1997 when the Chancellor published a new Treasury guide
"EMU: Practical Information for Business" (Treasury press
release 87/97, available from the Press Office or on the
Treasury Internet  site ). 

Copies of the booklet are available to the public by writing
to:

               EMU Initiative
               PO Box 506
               London SE99 7UY

2.   If you have access to the Internet you can find this news
release at http://www.hm-treasury.gov.uk. Other Treasury
material can also be found at this address.