EMU debate in Britain simmers as poll reveals strength of opposition

The proposed single currency for the EU, the euro, has come back into the British political debate, as a survey highlighted public opposition to monetary union in Britain and financiers awaited clarification of the Labour government's intentions towards integration with Europe.

Almost 61 per cent of Britons were opposed to British participation in European economic and monetary union (EMU), according to data compiled by the Social and Community Planning Research body.

The findings of the poll, confirming the hostility on the part of most Britons towards closer monetary ties with Europe, fly in the face of an apparent warming of ministers towards EMU.

While the British government insists that there are "formidable obstacles" to British participation in the single currency project from its launch in 1999, commentators agree that the government is less hostile to EMU than its Conservative predecessor.

The Prime Minister, Mr Tony Blair, must decide before the end of 1997 whether Britain intends to catch the first wave of EMU on January 1st, 1999. While British participation at that time has been all but ruled out, speculation in the British press has calculated that Britain will signal its intention to join EMU at a later date. Britain enjoys an opt-out clause from EMU that was won by the previous Conservative government.

The pro-euro camp argues that participation in EMU is vital to secure British influence at the heart of Europe - a cherished policy initiative of the Labour government, which assumes presidency of the European Union in January.

They also believe that the British economy would benefit from lower long term interest rates and further investment from overseas companies seeking to expand into the European market.

However, opponents argue that participation would damage the economy, because after six years of concerted recovery, Britain is at a different stage of the economic cycle from European counterparts like France and Germany.