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Businesses 'warming' to euro, says University internet survey

June 19, 2003

Businesses could be gradually warming to the idea of joining the euro, a monthly internet survey by The University of Nottingham Institute for Enterprise and Innovation (UNIEI) has revealed.

The latest survey of the UK Business Barometer asked small- and medium-sized companies whether, from a business point of view, they are in favour of the UK adopting the euro and how, if at all, the recent strength of the euro against the pound has affected their attitude to joining.

Joining the Euro has been the subject of much debate over the past few weeks, culminating in the Chancellor announcing that the five economic tests have not been satisfied at present. The Business Barometer survey has been monitoring opinion over the past two years and the result of the May survey shows a continuation of warming towards joining, although even now the percentage of those in favour still only constitutes a bare majority. This result is closely backed by the result from the May Business Adviser Barometer, also run in parallel with the Business Barometer by UNIEI.

More than half the businesses quizzed (50.5 per cent) were in favour of adopting the euro, whereas 39 per cent thought it would be the wrong move. Almost 60 per cent of those asked said the recent strength of the euro had made no difference to their opinions on joining, while 20 per cent said they felt more positive towards it and around nine per cent were less so.

The latest survey follows on from a similar question that businesses were asked in May 2002 on what extent the prospect of UK entry to the euro in 2004/5 would present opportunities/difficulties for them. It showed that more than one-third believed it would present some or significant opportunities, with 41 per cent saying it would not make a difference either way. Just over 16 per cent believed that it would cause some or significant difficulties.

Other issues up for discussion in the latest survey were commercial property prices, whether taking time off for holidays or leisure is costly or stressful, difficulties filling vacancies and employment tribunals.

The UK Business Barometer and the UK Business Adviser Barometer operate over the internet to generate very rapid results. They have unique software enabling results to be processed and posted on their respective websites immediately they arrive. The survey results are published monthly and more information, including a press pack, can be found on the web at www.ukbb.ac and www.ukbab.ac

Nottingham, University of

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