Britain’s euro opt-out may put Irish jobs at risk

BUSINESS organisations have warned that Britain’s decision not to join the euro could threaten thousands of jobs.

Irish Small and Medium Enterprises (ISME) head of research Jim Curran said the announcement would further weaken sterling, making Irish companies less competitive.

He said 70% of firms employing less than 250 people were dependent on Britain for their exports.

Tony Blair’s government yesterday insisted Britain was still not ready to adopt the euro.

However, he said the government would strive to implement measures for the future introduction of the currency.

Chancellor of the Exchequer Gordon Brown told parliament that Britain’s economy was not yet sufficiently convergent with the eurozone to merit a changeover.

A spokeswoman for Taoiseach Bertie Ahern said he welcomed the continued movement towards the euro, and looked forward to any further moves to make the change possible.

However, the Fianna Fáil chair of the British-Irish Inter Parliamentary Body said the British decision to remain outside was a disappointment for cross-Border businesses.

Cavan TD Brendan Smith said: “Whatever route Britain decides to take, I believe it makes economic sense for all businesses on this island to ensure that we develop into a single currency zone as quickly as possible.”

Public resistance to the euro remains very strong in Britain, with opinion polls consistently showing strong opposition, while several newspapers and the Conservative Party are campaigning to keep the pound.