LONDON, January 29: Bank of England governor Eddie George said on Thursday that the pound would have to achieve a period of stability against the euro before Britain could consider joining the single currency.George also cast doubt on the readiness of France, Italy and Spain to join the currency club at the present time.
For Britain, he said the pound would have to achieve a two-year period of stability to demonstrate it was in the right shape to join.
"I don't think we should consider joining unless we did have a period of stability with comparable interest rates," George told parliament's treasury select committee, a cross-party group of MPs charged with studying the economy and economic policy.
"De facto exchange rate stability is an important condition. The two-year time horizon is pretty well accepted by and large."
Later in the testimony, a member of parliament's treasury select committee highlighted unemployment levels of 12 per cent in France and Italy, and higher still in Spain, and askedGeorge if he was convinced they had shown sufficient, stable convergence to adopt the euro.
"I have serious doubts about it. But that's a decision the heads of state will have to make in March," Bank of England governor Eddie George replied.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
