Would joining the euro create better conditions for firms making long-term decisions to invest in Britain?
Almost certainly yes. Britain has attracted the most inward investment in the EU, but recently many of the big multinationals like Toyota, Ford, and Nissan have begun to warn that they only invested in the UK because they assumed it would eventually join the euro. The disadvantage for a firm that has invested in Britain is that fluctuating exchange rates, and especially the strength of sterling, has made their exports to the Continent uncompetitive. Nissan, for example, whose most productive car plant in Europe is based in Sunderland, still cannot make a profit selling its cars to Europe at the current exchange rate. Of course, if the UK joined the euro at the current exchange rate, then euro membership would not be so advantageous for these multinationals. Would joining the euro promote higher growth, stability and a lasting increase in jobs? This the broadest question, and the one that is most difficult to answer. If there was convergence in economic cycles (the first condition) and
