Euro debate pits old economy against new

NEWS BFS published a list of 338 UK business leaders who support its 'no' campaign. However, Roger Sharp, head of business liason for Britain in Europe - the pro-EMU group, said: "Our reservations with this list is that there are a lot of retired business leaders on it, as well as a lot of academics. It appears to be looking to the past economy rather than the new economy." He went on to add that its own list contains companies such as ICL, Mitsubishi, Psion, and Vodafone, as well as at least two dot-com companies. Sharp added: "We have had good support and feedback from this sector. I think new technology companies are looking for ways to do business without frontiers. And our view is that with the globalisation of markets, currency barriers have to be broken down." A source close to the situation went as far as accusing old economy companies of using Euro-scepticism to protect 'rip-off Britain', and prevent price transparency. He said: "A single range of prices in Europe means prices are more transparent. There are companies on that list that have a lot to lose from that." However, Business for Sterling claimed ecommerce via the internet provides price transparency anyway and as such the euro is not necessary. The spat raged as Charles Kennedy, leader of the Liberal Democrats addressed an audience of business leaders at the London School of Economics, enforcing the view that staying out of the single currency would damage the UK economy. He said: "Britain in Europe believes - as I do - that membership of a successful single currency is right for British jobs, for inward investment and for trade. As businessmen and women you will know what damage the high pound has been doing to exporters and manufacturers in this country."