The five tests framework EMU study The five tests framework This study has been prepared by HM Treasury to inform the assessment of the five economic tests This is one of a set of detailed studies accompanying HM Treasury’s assessment of the five economic tests. The tests provide the framework for analysing the UK Government’s decision on membership of Economic and Monetary Union (EMU). The studies have been undertaken and commissioned by the Treasury. These studies and the five economic tests assessment are available on the Treasury website at: www.hm-treasury.gov.uk For further information on the Treasury and its work, contact: HM Treasury Public Enquiry Unit 1 Horse Guards Road London SW1A 2HQ E-mail:
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[email protected] Printed by the Stationery Office 2003 799294 C ONTENTS Page Executive summary 1 1. Introduction 5 2. Government policy on EMU 7 3. The five tests: framework and approach 13 4. The five tests: costs and benefits 19 5. The five tests and the economic literature 27 6.