Attitudes Towards EMU - Survey of CBI Members
Technical details
MORI mailed self-completion questionnaires on 25 May 1999 to 5,000 chairmen/chief executives of direct members of the Confederation of British Industry (CBI) and of members of 18 trade associations affiliated to the CBI. Reminder letters were sent out to the entire sample on 9 June. A total of 1,284 questionnaires were returned by the deadline of 5 July 1999, representing an overall response rate of 26%. The survey was conducted for the CBI.
Base: All responding unless otherwise specified All figures are percentages Where results do not sum to 100, this may be due to multiple responses, computer rounding or the exclusion of don't knows/not stated * denotes a figure of less than 0.5% For full results see report and computer tabulations
Topline results
Membership of Economic and Monetary Union
Q1 EMU started on 1 January 1999 with 11 EU countries participating. The UK government has made an "in principle" commitment to join when the economic case is clear and unambiguous ('joining the euro' means the time at which the sterling/euro exchange rate is permanently fixed. Notes and coins will follow about 2 to 3 years later). It has also indicated that it does not believe that conditions will be right before the next Parliament but has not specified a target entry date. Which one of the following statements best reflects your point of view?
Britain should join the euro as soon as possible (ie. before 2002) * Britain should join the euro between 2002 and 2005 * Britain should be in principle committed to joining the euro, but should not yet decide the timetable * Britain should wait and see how the euro develops before making any decisions, even of 'in principle' commitment Britain should decide now not to join either in this Parliament or the next (ie. not before 2007) Britain should never join the euro Don't know/not stated * In each of these cases, the answer will be interpreted as indicating support subject to the negotiation of a reasonably competitive exchange rate
Q2 The definition of an appropriate competitive exchange rate would clearly have to reflect conditions when and if the UK makes a definite commitment to join EMU. What, however, would you consider to be an appropriate exchange rate for 163 sterling to enter the euro, if we were joining as soon as possible?
Below 2.60DM / euro 1.33 2.60-2.70DM / euro 1.33-1.38 .71-2.80DM / euro 1.39-1.43 2.81-2.90DM / euro 1.44-1.48 Above 2.90DM / euro 1.48 Don't know / not stated
Q3 If the UK stays out of EMU for a long period of time (e.g. more than six years after start date), do you think it will ... ?
Help the UK economy Harm the UK economy, OR Make no difference to the UK economy Don't know/not stated Help your individual business, Harm your individual business, OR Make no difference to your individual business Don't know/not stated Improve the competitiveness of UK exports Worsen the competitiveness of UK exports, OR Not affect competitiveness of UK exports Don't know/not stated Put UK businesses at a competitive advantage within the single market Put UK businesses at a competitive disadvantage within the single market, OR Not affect UK businesses within the single market Don't know/not stated Improve employment prospects in the UK Worsen employment prospects in the UK, OR Make no difference to employment prospects in the UK Don't know/not stated
Q4 If the UK does join the European Single Currency, do you think this will ...
Lead to higher interest rates in the UK, Lead to lower interest rates in the UK, OR Will not affect interest rates in the UK Don't know/not stated Lead to a higher corporate tax burden in the UK, Lead to a lower corporate tax burden in the UK, OR Will not affect the corporate tax burden in the UK Don't know/not stated Lead to greater economic stability in the UK, Lead to less economic stability in the UK, OR Will not affect economic stability in the UK Don't know/not stated Lead to higher long term growth rates in the UK, Lead to lower long term growth rates in the UK, OR Will not affect long term growth rates in the UK Don't know/not stated
Q5. How would a UK decision NOT to join EMU in the long term (i.e. ten years) be likely to affect your company's investment in the UK?
My company's investment in the UK would probably increase My company's investment in the UK would probably decrease My company's investment in the UK would probably stay the same Don't know/not stated
