The euro: pub industry must decide

A leading British economist has warned the licensed industry its "make your mind up time" over Britain's participation in a single European currency.​ Pub industry leaders were gathered for a debate organised by the Association of Licensed Multiple Retailers (ALMR) during the Pub & Bar show at Olympia, west London.

Chairing the debate was the chief economist of HSBC bank Dennis Turner, who warned: "We have always been a step behind Europe but now it's getting close.

"The next 12 months are critical in deciding whether we have a referendum and whether we join the euro. Many people's views of Europe are based on prejudice and emotion rather than fact."

The ALMR members were told that the issue goes beyond notes and coins.

The key point was the creation of a single economic and monetary union where the levers of the UK economy would be controlled by a central European bank.

Speaking in favour of the move was Lord Chris Haskins, head of the UK better regulation taskforce, and the man appointed by the government to rebuild Cumbria's rural economy, post foot-and-mouth.

He said there would be more convenience and less cost. "There is an obvious benefit for consumers, businesses and farmers in the UK in the further strengthening of the single currency," said Mr Haskins.

"UK businesses are already at a competitive disadvantage within Europe - why are we as a country so different from all those that are committed to the euro already?

"It is only a matter of time."

But Mr Haskins views were not endorsed by Steve Maughan, head of the "No Campaign" to the euro, who pointed out that the euro-zone only represented five per cent of the World market.

"The UK is the fourth largest economy in the World. We should aim to trade globally," he said.

"A single interest rate simply cannot work for the whole of Europe." Mr Maughan said it would result in higher interest rates, higher unemployment and more red tape.

Industry figures have mixed views over conversion. Some, like Laurel chief Ian Payne, say it can only benefit UK businesses. Others, like Wetherspoon boss Tim Martin, are vehemently opposed.

Mr Martin recently told The Publican: "Pubs will be a big loser - the conversion costs will be massive. There is no history of a single currency working without a single government - I'm convinced the euro will collapse."

A recent survey of UK company chief executives showed 66 per cent were opposed to the euro.