Euro's impact 'non-event for most UK firms'

The euro has had a limited impact on most UK businesses during the first year of its life, business organisations said today.

While some companies remain keen for Britain to join the single currency a large section of the business community is not convinced, they said.

The Federation of Small Businesses (FSB) branded the first year of the euro a “none event”.

The launch of the currency in 12 European countries has failed to shift opinion among its membership, the FSB said, with around 65% still in favour of retaining the pound.

The British Chambers of Commerce is in the process of collating results from a survey among its members on the same question. When the question was asked two years ago half were in favour of the euro and half against.

David Frost, director general of the British Chambers of Commerce, said: “It is clear those companies that are dealing with the euro, particularly first and second tier suppliers, have had to adapt to the euro. But it does not seem as if they have had much difficulty.

“They have been able to deal in sterling, the dollar and now the euro. It is just another currency for them.

“The wider issue is that members are saying trading conditions in Europe are difficult.

“Since the euro has been introduced the German economy has been as a performer very weak which has impacted on levels of demand.”

Stephen Alambritis, spokesman for the Federation of Small Businesses, said: “The euro has been a none event as far as many small businesses are concerned.

“Those that deal with visitors from abroad thought they would be sniffed at for still having the pound but that hasn’t happened.

“People have also not been coming back in large numbers from Europe saying how wonderful it is and wanting to use the euro here.

“Small businesses are more interested in making sure interest rates and inflation remain low.

“Those in favour of joining the euro tend to be be exporters and manufacturers making products for sale into Europe and abroad.”

The euro was launched on January 1 in 12 countries – Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain.