The leaders of 100 blue-chip companies in Britain have signed up to a £1 million anti-euro campaign in an attempt to warn voters of the dangers of membership of the European single currency.
Signalling the potential cost of implementing the euro which could run to £57 billion and a potential rise in unemployment and inflation, the backers of "Business for Sterling" launched their campaign in London yesterday predicting the chance of Britain escaping unscathed if the euro should fail were "simply nil".
The group is chaired by the former British Rail chairman and Labour cabinet minister, Lord Marsh, who now sits on the cross benches in the House of Lords. A £1 million fighting fund has been raised by anti-euro businessmen. Among the high-profile names that have signed up to the campaign are the heads of the Institute of Directors, the Federation of Small Businesses and the leading British businessman, Lord Hanson.
Spelling out the risks to British business if Britain joined the European single currency, Lord Marsh declared there was a "high probability" that the euro would fail. "If it collapses and we are inside, the chances of getting out without total disaster are simply nil. If it works, then we will have to go in, and yes, we will have to pay a price for it - but that is very small indeed compared to the disaster if we are inside and it collapses."
While there was no danger at all in staying out of the single currency, there were grave dangers in joining. "This organisation kills the argument that business is in favour of entry. There is a serious argument to be had because to a lot of businessmen it is something they fear and worry about," Lord Hanson said.
Pointing to the recent decision by the car manufacturers Honda, to invest a further £500 million in Britain, Lord Hanson said the deal proved Britain could survive outside monetary union.
However, the director-general of the CBI, Mr Adair Turner, accused the group of exaggerating the risks of joining the single currency. "I think the risks are that it may not be as good as people argue. There are certain dangers of tensions that under certain conditions could create unemployment. I think the chances of collapse are actually fairly remote."