Letter to the editor.

We could not agree more sincerely that the idea of a eurozone should be kept entirely separate from that of ‘Euroland’. In fact, we believe the idea that Emu will create ‘Euroland’ – an area that, from the outset, behaves like a single nation as regards political or even economic aspects – is, for business, a dangerous myth. This is because, while the single currency makes a great stride forward in the process already begun by the formation of the single market, there remain a large number of significant differences between the member states. For example, tax regimes, responses to economic shock and to inflationary pressure remain diverse. As a result, although the eurozone will have a single monetary policy, it would be wrong to assume that all the eurozone economies will behave in the same way. To thrive in this eurozone, therefore, businesses should not only be ready for the changes your editorial outlines, but must also adapt to the different threats, as well as the widely different opportunities, the single currency will offer in each geographical region. Leslie Gunde Head of the Emu unit, KPMG Management Consulting, Salisbury Square, London.