IoD disappointed byGovernments euro statement

The Institute ofDirectors (IoD) said today that it had mixed views of the Chancellor'sannouncement on the Five Economic Tests for entry into the euro.

Ruth Lea, Head of thePolicy Unit at the IoD, said:

Whilst we arepleased that the Chancellor has announced that the British economy has not yetmet his Five Tests for euro membership, we are disappointed that he will bere-assessing Britains economic readiness next year.

"We stronglybelieve that the British economy has not yet attained sustainable convergencewith the rest of the eurozone and that we, therefore, could not live happilywith the ECBs interest rates. Moreover, and crucially, we cannot see how theBritish economy will meaningfully attain sustainable convergence with the restof the eurozone over the next 2-3 years. The Chancellor should, therefore, ruleout re-assessing Britains economic readiness for euro membership for thelifetime of this Parliament. This would provide much needed stability for boththe financial markets and for business.

Ends 9.6.03 No.174

Note to Editors

The IoD (Institute ofDirectors) is a non-party political independent organisation with around 55,000members. In addition to its wide range of business services, the IoD providesan effective voice to represent the interests of its members to government andkey opinion-formers. It also brings he experience of business leaders to bearon the conduct of public affairs.

Contact Points:

Ruth Lea, Head of thePolicy Unit, tel: 020 7451 3291

Richard Taylor, PressOfficer, tel: 020 7451 3264

mobile and out of hours: 07721 734886

David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 0776 4883420

email: press@iod.com

web: www.iod.com