In a technical paper published in advanced of the next council meeting in Brussels, the Treasury said the European Monetary Union needed more flexibility to react to sudden economic changes.
It also warned that reforms agreed to in Lisbon in 2000 were not being implemented swiftly enough.
‘EMU membership puts a premium on ongoing reform of EU labour, product and capital markets through the Lisbon agenda,’ the paper said.
The comments echo concerns from the both the prime minister and the chancellor over economic reform in the EMU and its flexibility.
In his introduction to the paper, the prime minister said member countries were still ‘not doing enough’ to tackle fundamental barriers to job creation.
Unsurprisingly anti-euro lobbyists jumped on the report claiming it now meant that one of Gordon Brown’s five economic tests for euro entry – the need for flexibility – had not been met, preventing entry to the EMU.
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