British firms head for euro U-turn

BRITISH businesses are shedding their anti-euro stance and beginning to warm to the new currency, according to a major new survey.

Some 61% of firms polled said the introduction of the single currency would help their business succeed, up from 23% when the same question was asked in 1999.

Manufacturers are the biggest fans of the euro with more than two-thirds in favour, while more than half of retailers oppose it.

And big firms tend to be more enthusiastic about the euro than smaller businesses, according to the survey of more than 14,000 firms published tomorrow by HSBC and the British Chambers of Commerce.

David Lennan, director-general of the BCC, said: 'Retailers and some smaller firms fear that they will incur significant changeover costs. Manufacturers, on the other hand, see lost profitability and opportunities from not being in the eurozone.'

George Eustice, campaign director at lobby group Business for Sterling, said: 'This survey is distorted because the questions were weighted towards a proeuro option, but the mood of some sectors is coloured by pressures caused by the weak euro.

'Locking in now would only perpetuate those problems. Euro membership is irreversible and the decision cannot be based on short-term exchange rates.'

John Entwistle of pro-Europe lobby group Britain in Europe said: 'With the euro now successfully launched, British businesses are beginning to realise that they will inevitably pay a high price for our isolation from the new currency and risk losing trade, jobs, and investment.'

A separate poll published today by Opinion Leader Research shows that 64% of the country's leading business, political and academic figures support the idea of Britain joining the single currency.