Economic and Monetary Union (EMU) has been a long-established goal
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of the European Union as a way of stabilising currency values. The Exchange Rate Mechanism (ERM), established in 1979, prevents exchange rates being changed without the mutual consent of participating
countries.
Rates are set in relation to the European Currency Unit (ECU) which reflects the average value of all EU currencies (the pound is currently valued at around 1.45ECU). Next year, leaders of EU member states will decide which currencies will join the single currency, called the Euro. This will involve irrevocably fixing the exchange rates of participating currencies by the beginning of 1999. The Final move to the Euro, with its own banknotes and coins, will be completed by 2002. If the UK does not join in 1999, it could still join later. EMU, Practical Information for Business is a booklet published by HM Treasury. For your free copy contact EMU Initiative, PO Box 506, London 5E99 7UY. Another free booklet, published by the European Commission, explains the history of EMU and how the changeover to the single currency will be achieved. Contact Mrs J Rowland-Hughes, EMU/5040, European Commission, 8 Storeys Gale, London SWF' 3A1.