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When the Euro was first conceived the Maastricht treaty obliged all the members of the EU to adopt the Euro. However, the UK negotiated an exemption from that requirement for itself.
The government at the time said that it wouldn’t consider adopting the Euro until it is clear that it would be in the country’s economic interest to do so. This would be judged by looking at five criteria.
The Governments Five Criteria
The first criterion was whether there can be sustainable convergence between Britain and the countries in the Eurozone. This involved looking at areas such as the housing market and business cycles...
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