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Thursday, August 12, 1999 Published at 12:25 GMT 13:25 UK Business: The Economy UK still divided over euro ![]() The euro's launching fanfare failed to convince British businesses British businesses are still deeply divided over whether the pound should be dropped in favour of the embattled euro, according to a new survey by the London Chamber of Commerce. The survey canvassed the opinions of 250 London businesses and found that 45% supported adopting the euro within the next few years. But 36% said the government should rule out euro membership for the forseeable future.
Larger companies were more likely to favour the single currency, with 71% of those which employed more than 50 staff saying they wanted Britain to take the euro as soon as possible or within the next few years. Among smaller firms with fewer than 50 staff, support for joining the euro was weaker at 62%. On a sector-by-sector basis, the survey found that highest support for euro membership (63%) came from financial and business service companies, followed by 62% of manufacturers and 60% of retailers. Euro-zone realities The London Chamber's Chief Executive, Simon Sperryn, said the findings suggested that the Blair government still had "a lot of work to do" to convince some business people of the benefits of Britain adopting the euro. He also said the findings did not alter the fact that UK businesses must still be able to trade with the euro whether or not Britain entered the euro-zone. "The euro is now a reality which all UK firms must be aware of," he said. "Irrespective of the political debate, the single currency is an aspect of business which none of us can afford to ignore." Since the euro was launched on 1 January, currency dealers have tended to stay away from investing in the single currency because of low euro-zone interest rates and relatively gloomy outlooks for European economies compared to the US. |
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