Not only does a successful single currency make sense for the UK as a whole, but for each individual region and sector. Take a key industry like tourism, for example. ONS figures released in September 2000 revealed that the number of tourists from western Europe coming to Britain fell by six per cent over the previous year. Some of these people may have been deterred from visiting the UK because of the high pound. This is a reminder to our industry that staying out of the euro is not a risk-free option.
Business sees the danger of ruling out the euro.
A survey commissioned by London First Centre published in July 2000, showed that 76 per cent of foreign owned companies surveyed expressed support for the UK adopting the euro and most wanted Britain to join sooner rather than later. The reality is that the practical difficulties facing British businesses outside the single currency far outweigh any emotional argument based on misconception and insecurity, often called the 'sovereignty issue'. I do not believe that we should join the euro today. But all this evidence must lead us to the conclusion that there are economic circumstances where the advantages in terms of increased trade, competition and national prosperity would outweigh the disadvantages, sometimes given, of a common interest rate or changeover costs. I cannot agree with the stance of those people who would rule out membership of the single currency in principle.