HM Treasury News Release
156/97 5 December 1997
_________________________________________________________________
NEW EURO PREPARATIONS UNIT TO HELP BUSINESS
Business readiness for trading in the single currency after 1
January 1999 will be boosted by a new Euro Preparations Unit
(EPU) within the Treasury, Chancellor Gordon Brown announced
today.
Announcing the setting up of the EPU, which will also involve the
Department of Trade and Industry, he said :
"Both Government and business must prepare intensively for
EMU. The changes affecting British business within its
largest export market are just thirteen months away.
Together, we must be ready to take advantage of the
opportunities and prepare for the challenges which lie
ahead.
"The Government is committed to help business prepare to
compete successfully against other firms using the euro
from January 1999. We will also be working with business on
what must be done to prepare for the option of joining the
single currency ourselves in the next Parliament.
"To achieve these aims we need resources dedicated to the
task. The new Euro Preparations Unit I am announcing today
marks a significant step forwards towards providing the
assistance business requires."
Building on work already in progress, the EPU is intended to be
fully operational early in the New Year. The Unit will include
around 15 members drawn from the Treasury, DTI and other
Government Departments and business.
Reporting in first instance to Lord Simon, it will support the
existing Standing Committee on preparations for EMU and stimulate
and steer business and public authority preparations.
NOTES FOR EDITORS
1. The aims and objectives of the EPU are :
Aims
(1) To ensure UK business and public authorities are ready
for the introduction of the euro in other EU countries
on 1 January 1999.
(2) To complete the necessary planning and preparation to
enable UK entry early in the next Parliament, if this
is what the Government, Parliament and people decide.
Objectives
(1) To develop the Standing Committee into a comprehensive
and effective mechanism for preparations for EMU.
(2) To produce a draft UK "national changeover plan"
covering all relevant issues and players which would
be affected if the UK were to join the single
currency.
(3) To develop the long term arrangements for carrying
forward preparation, should the UK decide to move to
the single currency.
(4) To stimulate and steer business and public authority
preparation both for the launch of the euro in 1999
and for possible UK entry.
(5) To increase public awareness of the facts and
practical issues relating to the launch of the euro.
This will include a programme of coordination with
external organisations which can reach wider
audiences.
(6) To ensure that the UK benefits from the experience of
other countries in both technical preparation and
public education for the introduction of the euro.
2. The main areas of work for the EPU will be :
(1) Providing analytical, planning and secretarial support
to the Standing Committee and the other groups.
(2) Designing and managing information programmes aimed at
business, public authorities and the general public
(through conferences, publications, speeches etc).
(3) Identifying the main policy issues, and developing and
implementing solutions to them.
(4) Establishing an effective two-way channel of
communication with business and public authorities to
stimulate cross fertilisation of ideas, dissemination
of best practice and the identification and solution
of policy issues.
(5) Gathering, disseminating and using the experience of
other countries.
(6) Reporting at regular intervals to Treasury Ministers
and through them to other Ministers, on the progress
of preparation.
3. The EPU will be located in the Macroeconomic Policy and
Prospects Directorate of the Treasury, working closely with
the team working on Government policy towards EMU. It will
report initially to Lord Simon, Treasury Minister
responsible for EMU business preparation, and ultimately to
the Chancellor of the Exchequer.
4. The EPU will work with and through other Government
departments with responsibilities relating to particular
industries. There will be a joint Treasury and DTI
management committee with responsibility for ensuring
liaison between the Departments and determining the longer-
term direction of the Unit.
5. The EPU will be organised into three sub-units:
(i) Standing Committee Secretariat, whose main tasks will
be to plan the work of the Standing Committee and
other groups. It will compile the Standing
Committee's reports and produce policy papers for the
Committee on general matters which do not arise
directly from particular business sectors.
(ii) Information Programme Section, whose main task will be
to develop and implement the necessary information
programmes. A great deal of this work will be
contracted out to professional advisers and
contractors. The section will manage external
consultants and the overall programme.
(iii) Business Advice Section, comprising around six
advisers with responsibility for particular
business sectors or parts of the public sector.
Each adviser would also have a responsibility for
a particular thematic issue, eg information
technology. Advisers will be responsible for
developing two-way communication with business
and the public sector and identifying and
resolving specific preparatory issues, such as
changes to particular legislation.
6. EPU staff costs are expected to be around 0.5 million
Pounds, with an initial information programmes budget of 1
million Pounds. Funds would also be sought from relevant
European Community programmes
7. Copies of recent Treasury publications on EMU can be
obtained from the Public Enquiries Unit on 0171-270
4860/4870/4880 or on the Treasury's Internet site at:
http://www.hm-treasury.gov.uk.
8. Media enquiries should be directed to the Treasury Press
Office on 0171-270 5188.