Britannia Radio

TELEGRAPH  2.1.09
Almost three quarters of Britons opposed to joining the euro
Almost three quarters of Britons remain opposed to joining the euro 
10 years after it was introduced.

By Myra Butterworth, Personal Finance Correspondent

A new poll reveals that 71 per cent of people are against Britain 
entering the European single currency, with only 23 per cent in favour.

It comes amid the plunging value of sterling against the euro, which 
has almost achieved parity with the pound.

This week the euro climbed to a record high of 98p against the pound, 
leaving tourists receiving less than a euro given for each pound once 
commission charges are taken into account.

It comes as William Hague, the Shadow Foreign Secretary, reiterated 
that a Tory government would never adopt the euro.

There are fears that the pound may fall further amid speculation that 
the Bank of England may deliver another cut in interest rates next 
week to stave off a prolonged recession.

Sterling is less attractive to foreign investors if rates are coming 
down as they will typically get a lower return on their money.

The ICM survey for BBC Radio 4's The World At One also revealed that 
just 15 per cent said that the pound's fall made them more keen on 
ditching sterling for the euro.

Martin Ellis, chief economist at Halifax, said: "The euro has risen 
strongly against the pound in 2008, with an almost parity being 
reached between the two currencies over recent days.
"The financial markets appear to be reacting to the belief that the 
already record low bank rate of 2 per cent could be cut further in 
the New Year."

Last month, European Commission President Jose Manuel Barroso said 
the UK was "closer than ever" to joining the euro and that the 
"people who matter" in British politics were contemplating giving up 
the pound.
Business Secretary Lord Mandelson said the Government maintained the 
long-term policy objective of taking the UK into the euro, though he 
insisted: "It's not for now."

When the euro was launched 10 years ago it became the official 
currency for 11 member states of the EU, marking an end to Germany's 
Deutschmark and the French franc.

It began trading on January 4 1999, at just 71p against the pound and 
has since traded at an average of 67p against the pound.

The euro hit an all-time low against the pound of 57p in May 2000 but 
recovered to reach this week's record high.

Also today (1/1/09), Slovakia became the latest member of the euro 
area, taking the number of countries where the euro is official 
currency to 16.