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EMU Entry Unpopular in UK
The latest poll from MORI Financial Services in the UK suggests that public opinion remains clearly against EMU entry. The balance of opinion against EMU entry has increased slightly since May and is similar to the average of Labour's first term in government (1997-01).
The Treasury's latest Changeover Plan suggests that the government is still keeping open the option of a referendum next year on EMU entry. But, in practice, MORI doubts that public opinion will shift enough to allow the government to risk a vote.
In particular, it seems unlikely that peoples' experience of using the euro on summer holidays will produce a significant shift of public opinion in favour of EMU entry. If anything, support for EMU entry might suffer as people hear at first hand about price hikes - which have been especially marked among recreation services.
With economic growth picking up, the chance of EMU entry does not seem high enough to support the UK short end if equities manage to stabilise.
The latest polling was conducted between 11 and 16 July 2002 on a sample of 2,159 people.
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