Euro entry will boost growth
A leading economic think tank says joining the euro will deliver major benefits to the UK and will boost GDP by 4% after 20 years.
Link: FDs’ euro doubts grow
According to the National Institute of Economic and Social Research, joining the single currency would increase investment output and employment.
Last year the NIESR said the five economic tests, set out by the chancellor for joining the euro, had been met and yesterday the think tank went further saying the 8% drop in the pound against the euro would remove another stumbling block.
The report by the NIESR could have a major impact on the Treasury to join the euro as it uses its forecasting model as one of its economic tools, according to the FT.
However, any move towards joining the euro is likely to be met with stiff opposition from the Conservatives and many in big business.
A recent poll by Accountancy Age found that opposition among FDs to joining the euro was mounting, just a year after it was introduced across much of Europe.