Understanding the Euro

ANDuff in Colour

Understanding the Euro

Foreword by Kenneth Clarke
Editor Andrew Duff

As the debate about the single currency quickens, the Federal Trust publishes a major new book edited by its Director, Andrew Duff, and with a foreword by former UK Chancellor of the Exchequer, Kenneth Clarke MP.

Written by a team of distinguished authorities, the book does not minimise the risks involved in making the transition to the single currency. The authors are clear about the practicalities and quizzical about current policies. They are united in arguing that the euro is likely to be a success, and that therefore sterling should join as soon as it is practicable to do so.

In his substantial foreword, Kenneth Clarke blames the Blair government for a 'failure of nerve' about the single currency. Putting a trenchant case for EMU, he argues that Ôthere is certainly no reason why we should now necessarily exclude the possibility of membership ... in January 2002'. He is critical of the 'strangely intimidated government afraid to use its position of strength to assert controversial positions in the national interest'; and fears that Ôthe longer the UK stays outside EMU, the bigger the disadvantages of non-membership may become, and also the more difficult we may find it actually to get in'.

Clarke appeals to the euro Eleven to avoid the 'deliberate and gratuitous exclusion' of the UK. But adds that the Ôbest way to induce the right response from our partners is to make it clear to them that our intentions about joining are serious'.

David Begg addresses the question of whether EMU is likely to require much closer fiscal integration than that anticipated. He proposes reform of the Stability Pact to allow for more flexible, short term adjustments to budgetary positions.

Alison Cottrell finds the circumstances prevailing at the birth of the euro propitious for its long-term success, even though the demands of structural adjustment may disenchant sections of the public.

Iain Begg investigates the impact of EMU on national exchequers, and concludes that while an increase in EU spending will not be essential, it may nevertheless prove to be desirable.

In his chapter on how EMU will affect investment, Graham Bishop warns that investors will punish the UK if it proves itself unwilling or incapable of membership. John Monks argues forcibly that the more flexible labour markets demanded by EMU are not to be feared if the Union retains its sense of social solidarity, and that the UK will benefit from the best practices of continental social models.

David Currie describes how good public policy decisions under EMU will benefit business, and makes a plea for a more honest approach to the debate about federal governance.

Mr Brown's famous five economic tests are challenged by Christopher Johnson, who argues that EMU will relieve the UK of stop-go economic management.

Peter Riddell looks forward to the EMU referendum campaign in Britain, and argues that Mr Blair has no choice but to face up to the hostility of the Murdoch press.

In his analysis of British public opinion, Peter Kellner suggests that an underlying hostility could be overcome, but only after a strong pro-euro campaign.

Nigel Forman and John Stevens consider the impact of EMU on the Westminster and European Parliaments respectively. Neither hide their concern about accountability and legitimacy, but suggest that there are ways of dealing with the problem.

Finally, Andrew Duff tackles the fear that EMU will lead inevitably to the emergence of a European superstate. He denies that this is so - as long as the spirit and letter of the Treaty on European Union is adhered to.

'This book is to be warmly recommended as a major contribution to the most important political and economic debate of our time.' KENNETH CLARKE

CONTENTS o Glossary o A Chronology of EMU o Kenneth Clarke Foreword o 1. David Begg Is EMU an ambush? o 2. Alison Cottrell Sustaining EMU o 3. Iain Begg Affording EMU o 4. Graham Bishop Investing in Euroland o 5. John Monks EMU and Unemployment o 6. David Currie Making EMU Work o 7. Christopher Johnson Britain's Membership o 8. Peter Riddell The Referendum and the Press o 9. Peter Kellner EMU and Public Opinion o 10. Nigel Forman & John Stevens The Euro and Parliamentary Democracy o 11. Andrew Duff Superstate Euroland? o ISBN 0 901573 72 8 160 pp £9.95 Orders from KOGAN PAGE on 01903 828800 For more information phone Owen Burdekin on 0171 799 2818

Back to Publications