CBI Calls For Decision On Euro Entry

by Jason Gorringe, Tax-News.com, London

22 May 2002

The Chairman of the Confederation of British Industry (CBI), Digby Jones, has urged the government to reach a decision on euro entry, arguing that the uncertainty and delays over the issue are proving detrimental to the country's international competitiveness.

There has been much confusion and speculation in the UK media recently, following suggestions - subsequently denied by the Treasury - that Gordon Brown is gearing up to offer his support for eurozone entry proposals, and the Spanish Finance Minister's suggestion earlier this week that Britain could enter monetary union without substantially reducing spending or increasing taxes.

Speaking to the Bloomberg news service, the CBI chief condemned Prime Minister, Tony Blair's 'prevarication' arguing that: 'It's in the interests of business to have it sorted out so that overseas investors know where Britain is going. It's prevarication which is actually upsetting everybody. Let's get this sorted one way or the other.'

In November 2000, the CBI announced its opposition to proposals to adopt the euro, saying that it was not the right time to transfer control of monetary policy from the Bank of England to Europe. However, the industry body's position on the possibility of joining the eurozone appears to be softening, according to Mr Jones.

Revealing that although there is still a split between CBI members over the issue, the gap appears to be narrowing, the CBI Chairman explained to Bloomberg:

'We reflect society and society is divided. The CBI does have a minority - it is a minority but nevertheless it's a significant one - that's against entry.'

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