Britain suffering euro exile

Staying out of the euro is putting Britain’s economic success at risk, a group of economists argued today.

A report, published by pro-European campaign group Britain in Europe, said the time for “wait and see” was over.

It said joining the single currency would enhance Britain’s prosperity and allow Britain to afford better public services and living standards.

The report added countries which had joined had benefited from the single currency, with trade between them rising since launch of the euro.

And it warned if Britain did not join soon it would “fall further behind”.

Professor Richard Layard, of the London School of Economics, who led the report, said: “After almost four years of British isolation from the euro, we now have considerable evidence that the euro is boosting prosperity in the euro-zone.

“Trade between euro-zone countries has risen dramatically while our trade with them has stagnated. Much of the foreign investment that used to come to Britain now goes elsewhere in Europe.”

He added: “Wait and see is no longer the safe option, we have to make up our minds soon.