Business support for euro drops
Business support for the entry to the euro has fallen according to the latest survey.
The survey of 200 firms by the private equity house, Gresham found that support for euro entry has fallen over the last three years.
The Gresham business monitor found that 40% of firms think the UK should join the euro, well down on the 52% recorded in 2000.
The monitor pointed out that support for the euro is cooling despite the more competitive trading environment caused by recent falls in the value of sterling.
The survey also revealed that the number of companies against euro entry have increased to 40% compared to a third of firms three years ago.
Manufacturing continues to be the most supportive of joining the single currency. Forty-four per cent of manufacturers support euro entry compared to 36% of service companies.
Support for the single currency was found to be strongest among companies based in the southern part of the country. Gresham found that 47% of southern firms were supportive of euro entry.
Thirty-four per cent of northern firms and 39% of companies in the Midlands were supportive of joining the European Single Currency.
The UK’s entry to the euro was held back when the Government delivered its review of the five economic tests for entry. The Government claimed that whilst the arguments remained good for the UK’s entry the current economic conditions would not allow early entry.
However, the Chancellor, Gordon Brown claimed that a review would be carried out again next year to see if the UK’s and Europe’s economies had converged closer making entry to the single currency possible.
