ENTHUSIASM for the single European currency is much higher in the insurance industry than among the banks. This emerged in the latest survey from the Financial Services Industry Association.
Only 52 per cent of banks in the survey believed the competitiveness of the financial services industry would increase after the introduction of the single currency.
However, 80 per cent of the insurance companies surveyed took this view.
The banks' somewhat less sanguine outlook reflects the administrative costs that they will incur as a result of the introduction of the single currency, explained Mr Torlach Denihan, director of the association.
It also indicates how concerned the banks are about the loss of treasury business as demand for foreign exchange services declines.
Insurance companies stand to benefit as investing in the other EMU participant countries will be made simpler and currency risks eliminated.
Despite the differing views, the majority of the institutions surveyed agreed that EMU would stimulate economic growth.
One of the more surprising results of the annual survey is that 52 per cent of the respondents believed Ireland was right not to opt out of the Social Chapter of the Maastricht Treaty, which binds Ireland to EU directives on employment law and other issues.
This is despite almost 50 per cent of the respondents saying they saw such legislation as an impediment to job creation in the financial services industry.
The survey, which covered more than 70 companies, also found that confidence in the industry remained strong, with 52 per cent of respondents more confident about the overall business situation now than they were a year ago.
Some 57 per cent of the firms surveyed said they expected to take on more staff.
There was good news for the Minister for Finance, Mr Quinn, who received a copy of the survey yesterday. Almost 60 per cent of the respondents felt the Government was pursuing a balanced and coherent economic strategy.
However, only 43 per cent felt the Government's policies encouraged job creation.
