To ask the Chancellor of the Exchequer if he will list those benefits of membership of economic and monetary union which cannot be obtained by a member state remaining outside the single currency; and what assessment he has made of the potential financial gain arising to the UK from those benefits. [73598]

The Treasury's assessment of the five economic tests published in October 1997 set out some of the benefits of monetary union. These include reduced transaction costs, the elimination of exchange rate uncertainty on trade and investment in the euro area and increased price transparency. The Treasury's assessment of the five economic tests concluded that membership of a successful single currency could enhance competition and improve prospects for trade and investment.