Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

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.


[ image: Making a success of the euro is proving an uphill struggle]
Making a success of the euro is proving an uphill struggle
Only 19% said they wanted Britain to adopt the euro as soon as possible.

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.



Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Economy Contents


Relevant Stories

13 Jul 99 | The Economy
One voice to talk up euro

12 Jul 99 | The Economy
Bumpy ride for euro

28 Jun 99 | UK Politics
Pro-euro group wins Blair's backing





Internet Links


Business for Sterling

Britain in Europe

HM Treasury

European Union

London Chamber of Commerce


The BBC is not responsible for the content of external internet sites.




In this section

Inquiry into energy provider loyalty

Brown considers IMF job

Chinese imports boost US trade gap

No longer Liffe as we know it

The growing threat of internet fraud

House passes US budget

Online share dealing triples

Rate fears as sales soar

Brown's bulging war-chest

Oil reaches nine-year high

UK unemployment falls again

Trade talks deadlocked

US inflation still subdued

Insolvent firms to get breathing space

Bank considered bigger rate rise

UK pay rising 'too fast'

Utilities face tough regulation

CBI's new chief named

US stocks hit highs after rate rise

US Fed raises rates

UK inflation creeps up

Row over the national shopping basket

Military airspace to be cut

TUC warns against following US

World growth accelerates

Union merger put in doubt

Japan's tentative economic recovery

EU fraud costs millions

CBI choice 'could wreck industrial relations'

WTO hails China deal

US business eyes Chinese market

Red tape task force

Websites and widgets

Guru predicts web surge

Malaysia's economy: The Sinatra Principle

Shell secures Iranian oil deal

Irish boom draws the Welsh

China deal to boost economy

US dream scenario continues

Japan's billion dollar spending spree