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UK economicsIn an unpleasant reminder of the Windsor Castle fire, a "crumbling" Buckingham Palace is struggling to get funding for much needed repairs to it's roof and exterior walls. The State Opening of Parliament for the 2006-07 Session will take place on Wednesday 15 November 2006. Consumer price index (CPI) inflation rose to 2.0% from 1.9% in January, hitting the Bank of England's target. The rise was due mainly because of increased prices of items such as books, computer games and newspapers, and of course because of higher energy costs. A small upward effect came from furniture, household equipment and routine maintenance, as prices for some carpets increased in February compared with little change a year ago. The Business published the following editorial on the euro zone in October 2004.
Gordon Brown, the UK finance minister, ruled out early entry and drew attention to the hurdles that must be overcome before Britain was ready to join. Mr Brown made a statement to the British parliament on 9th June 2003. He said that only one of his five tests had been passed. Convergence of the UK economy with the economies in Euroland had not been achieved.
Gordon Brown, the UK finance minister, added extra hurdles for joining the euro when he spoke at the Mansion House on 26th June 2002. He said the Treasury would now also look at the impact on the booming housing market, the importance of the exchange rate and whether other EU countries would stick to the economic rules for the single currency. During the 1950s and 1960s Britain maintained a fixed exchange rate against other currencies. For example one pound was worth about 14 German marks. Britain's economy was badly run during this period, exports could not keep pace with imports growing much faster and there was an ever larger deficit of the balance of payments. It's as important a decision as it is difficult. Tony Blair promised that if he won the 2001 election he would decide within two years whether to have a referendum. The president of the European Commission, Romano Prodi, raised the stakes, coming to Britain to tell us we will lose out if we don't join in. Although the single currency is most obviously an economic project, the political issues have proved particularly persuasive in public debate. This is hardly surprising since for centuries the national currency has been such a potent symbol of the nation state. Rupert Murdoch said he will use his UK newspaper empire to campaign against British euro membership if the government calls a referendum on the single currency. Mr Murdoch will instruct his UK newspapers to spread the message "vote no" in the run-up to the referendum. 
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