Emu Study Ser.

This publication is part of a set of 18 documents which have been prepared by H.M. Treasury to inform the assessment of the Government's five economic tests for Economic and Monetary Union (EMU) entry into the euro area. The principal purpose of current UK fiscal policy is to ensure the sustainability of public finances over the medium term. This study seeks to assess whether a greater stabilisation role could be delivered through fiscal policy if the UK were to join the single European currency. It examines fiscal stabilisation policy from two related perspectives relating to economic and practical feasibility.