Euro: ACCA expects 2004 referendum

This followed the chancellor’s statement that a decision on holding a referendum would be made in the Budget speech in March next year.

Chas Roy-Chowdhury, head of tax at the ACCA said: ‘Whatever view one has on theeuro issue, UK business will at least have a clearer idea now of where itstands. It is clear from the chancellor’s statement that the government hasdecided to take this issue to the British people next year.’

He added that great emphasis must be placed on major reforms aimed at ironing out the remaining problems on convergence and flexibility over the next twelvemonths.

‘One must wonder though why it has taken six years to reach this stage and yet just one year to achieve convergence with the European economies, given it is such a major undertaking.’

The ACCA said it was pleased with the decision to set up a fiscal stability pact, reporting directly to parliament, similar to the current Monetary Policy Committee.

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