A TOP economist advised business people in a Bolton audience to expect UK membership of the European Monetary Union. Mr Jeremy Peat, Chief Economist at the Royal Bank of Scotland, told them to "prepare for UK out, but to expect UK in." They were urged to make sure they were operationally ready and to analyse how their businesses would be affected.
Mr Peat was speaking in the Bolton School Arts & Conference Centre at the third annual economic seminar organised by the RSB's Bolton Corporate Centre in Deansgate.
He outlined the issues for UK businesses as the country remains for the moment outside the "Euroland" grouping of 11 nations formed at the start of the year.
But he gave this "possible timetable" for UK entry:
Nov/Dec 1999 - UK joins ERM II.
May/June 2001 - UK General Election.
Sept/Oct 2001 - UK Referendum.
January, 2002 - UK entry to EMU and euro notes and coins in circulation in the countries which joined in the first wave.
Early 2003 or 2004 - Euro notes and coins in circulation in the UK.
Mr Peat also discussed the question of "Euro Creep" throughout British industry.
Firms in Bolton might have to involve themselves in the new currency before entry in order to continue to do business with other firms which were already doing so.
And there was an insight into the future nature of UK pricing and selling should we decide to join.
Mr Peat pointed out that the "psychologically satisfactory" price of £1,000, say, would not seem as appealing as EUR 1383.61.
The other speaker was Mr Peat's Deputy, Mr Richard Taylor.
He predicted that UK interest rates would ease further and the country's economic slowdown would continue in an uneasy global climate.
But a modest recovery was expected from the end of 1999.
Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.
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