Prior to EMU’s inception, many critics pointed out that only an optimum currency area could afford to forgo flexible exchange rates as an adjustment tool in the event of asymmetrical shocks. The mobility of labor as a factor of production in Europe, so the argument, is too restricted by cultural, linguistic and legal barriers to effect the necessary adjustment in a single currency area.
Our production arrangements are already well in hand. In recent years we have invested more than £ million in new plant and machinery. Coin production is under way since last autumn; we plan to begin the production of euro banknotes in April. We must provide, for our own initial needs, almost 200 million euro notes and over 900 million coins.