Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Bosses at loggerheads over single currency

Michael Harrison,Chris Godsmark
Wednesday 23 April 1997 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Britain's two leading business organisations came to blows yesterday over the single currency amid reports that the Confederation of British Industry was set to back European economic and monetary union.

Lord Young, president of the Institute of Directors and a former Conservative cabinet minister, said: "I have never forgotten the way the CBI came out against all our trade union reforms in the 1980s because they wanted an easy time. It could be they are looking to support the single currency because it is the easy way out, because the pound is a problem."

If the CBI endorsed EMU it would be a "step in the wrong direction" because the IoD did not believe Britain should contemplate a single currency for the foreseeable future.

Tim Melville-Ross, the IoD's director-general, followed up Lord Young's criticisms, saying EMU would be damaging for the country and its members. Although it had not canvassed members recently, its last polls showed 70 per cent opposed to EMU. "It is becoming a big company versus small company debate," he added.

A number of large companies including Unilever, whose chairman Niall Fitzgerald heads the CBI's Europe committee, are strongly pro-EMU.

But Mr Melville-Ross said: "Big companies should look beyond their own corporate interests to the wider economy. It is a narrow-minded view when big companies say a single currency is good for Europe."

The CBI, however, sought to distance itself from reports that it was poised to come out in support of Britain joining the single European currency.

It confirmed it had embarked on a private internal consultation exercise which would lead to an official view on the euro by the summer. Three options were being put to members at council meetings in a briefing document written largely by Adair Turner, director-general, and Kate Barker, chief economist.

However, the CBI insisted one of the options was for the UK to stay out of monetary union "for the foreseeable future". The other two options are thought to be to join in the first wave of countries in 1999 and to wait on the sidelines before making a decision.

There are 13 regional CBI councils, though a spokesman said the decision would be made through "consultation" and would not be put to a vote.

Andrew Buxton, head of the CBI's economic committee, refused to be drawn on which way the consultation process would go. The CBI position is to keep the option to join open while expressing no opinion in principle either way. "I've no way of pre-judging the consultation process," Mr Buxton said.

IoD Conference, page 24

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in