Although the Social Chapter appears to be anti-business, its introduction in Britain is no cause for alarm. Blair has pledged that he would retain Britain's veto option on tax, social security, and pension issues. What is more, issues of pay and the right to strike are already outside of the Chapter's authority. In key policy areas, then, Britain would retain control. With a commitment to business, furthermore, Blair would not support measures compromising British competitiveness.
Recent polls suggest that the necessary public support for the single currency is wanting.
Nonetheless, shadow chancellor Brown has said that EMU will be crucial for British business to remain competitive within the European Single Market. Although the Labour Party itself is, like the Conservatives, divided on the issue, a decisive Labour victory in the elections could give Blair more room to maneuver. In what concerns other important European issues, including a Common Foreign and Security Policy and greater cooperation in Justice and Home Affairs, Blair has vowed to be as obstinate as Major in guarding British national sovereignty. Although a Blair victory next month will set the stage for more congenial relations between London and Brussels, many British policies toward Europe can be expected to remain much the same, at least for a period of transition during which the new government becomes used to a power that it has not held for nearly 20 years. Yet while the government will make its recommendation concerning Sweden's participation in the single currency this autumn, the exact content of that recommendation is uncertain at this point.