r the UK economy Britain would have to adapt to survive. Rates that were set too high could endanger growth, UK workers might have to accepts a cut in wages as we could no longer rely on a falling currency making UK exports cheaper.The third test is to determine whether joining the EMU would create better conditions for outside firms making the decision on whether or not to invest in Britain. Britain already has an excellent position as a choice destination for foreign firms investing in Europe and also wants to encourage domestic firms to invest. Fixing the rate to the rest of the eurozone may help and indeed several car- makers have warned that sterling current high rate is proving difficult for them.The impact on the financial services industry is the fourth test, the government must consider that the city is a major employer and wealth generator yet may stand to lose some of its most lucrative deals if it remains permanently outside the eurozone.CAPThe Treaty of Rome in creating the European Economic Community (EEC) in 1957 contained provision for a “common agricultural policy” (CAP).This policy sought to increase the productivity of European agriculture, ensure reasonable living standards for farmers, to stabilise farm produce markets and to guarantee a stable food supply at fair prices to consumers.In 1958 the Stresa conference laid down the principles of CAP.•Single markets (guaranteeing free trade between the communities Member states)•Community preference (priority for the communities agricultural products, without stopping the flow of imports from countries outside the community)•Financial solidarity (a common agricultural budget under the cap)The objectives of the CAP are to:•Increase agricultural productivity•Ensure a fair standard of living for the agricultural population•Stabilise markets•Guarantee regular supplies of agricultural products•Ensure reasonable prices...
