Overwhelming support for Euro amongst UK firms trading overseas

Bibby Trade Finance launches new research findings

As the date for the Chancellorís announcement on the results of the five economic tests for the euro looms on June the 9th, the latest research from Bibby Trade Finance has found that UK firms involved in trading overseas are becoming increasingly confident in the euro. The findings show that 58 per cent of firms believe that the UK should definitely join the euro, a 10 per cent increase on this time last year. Of these, 22 per cent feel that Britain should join immediately, with 36 per cent preferring to see entry in a few years.

This comes at a time when in recent months, sterling has been depreciating against the euro resulting in vastly improved opportunities for UK exporters.

The number of businesses trading overseas that are against entry to the eurozone has fallen by half over the past year, with only seven per cent saying that they would never want to join. A further 19 per cent remain open-minded preferring to wait and see.

One of the reasons behind this new optimism is the benefit that they feel adopting the euro will bring. 37% believe the euro will significantly reduce red tape. This comes at a time when dissatisfaction with the Government for failing to respond to such issues is at an all time high - 62 per cent of firms find bureaucracy levels to be one of the biggest obstacles to their business.

84% of UK firms firmly believe that euro entry will have no adverse effect on their existing business operations. A further six per cent state that the euro will improve their business prospects by giving them greater access to new markets.

Stuart Relton, Managing Director of Bibby Trade Finance, comments; ìThe euro is clearly a vital issue for businesses involved with trading overseas. Confidence is growing and firms are beginning to look beyond their original concerns and are seeing the real benefits. The fact that sterling is falling against the euro in favour of UK exporters is a major boon in favour of the UKís adoption of the euro. With the majority of UK exports going to euro currency countries, the simplicity of trading in a single denomination, not affected by fluctuations in the exchange rate, will substantially increase the competitiveness of UK business and open up bigger and better market opportunities.î