IoDSAYS NO TO THE EURO FOR THE

FORSEEABLE FUTURE

The Institute of Directors(IoD) today said today that the Chancellors expected not yet verdict onBritains membership of the euro was the right decision.

Speaking in advanceof todays Cabinet meeting, Ruth Lea, Head of Policy at the IoD said:

We expect that theChancellor will announce a not yet verdict on the British membership of the euronext Monday. This would be the right decision. The Chancellors five tests havecertainly not been met. In particular the crucial first test on sustainableconvergence, the ability to live happily with the ECBs interest rates, has notbeen met. If we had had eurozone interest rates in recent years, housing marketinflation would have been uncontrollable and the build-up of private sectordebt even more dramatic than it has been.

/2.

Moreover, we cannot see atime when the British housing market, for example, will come into line with thehousing markets in the core eurozone, principally Germany and France, and we,therefore, believe that the pound should be kept for the foreseeable future. Wehope that the Chancellor will announce next Monday that the Government will notbe re-assessing the five tests, or any other tests, again during thisParliament in order to provide much needed stability for the financial marketsand for business. If we are not adequately converged now, there is no chancethat such convergence can be achieved over the next 2-3 years.

Ends 5.6.03 No.173

Note to Editors

The IoD (Institute ofDirectors) is a non-party political independent organisation with around 55,000members. In addition to its wide range of business services, the IoD providesan effective voice to represent the interests of its members to government andkey opinion-formers. It also brings he experience of business leaders to bearon the conduct of public affairs.

Contact Points:

Ruth Lea, Head of thePolicy Unit, tel: 020 7451 3291

Richard Taylor, PressOfficer, tel: 020 7451 3264

mobile and out of hours: 07721 734886

David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 0776 4883420

email: press@iod.com

web: www.iod.com