Why the East of England needs Europe and the euro

12.00.00am GMT Sat 1st Mar 2003

East of England Lib Dem MEP Andrew Duff has published a fact-list of showing how the East of England is benefiting from Europe, and how membership of the euro would benefit the region.

The list reveals:

In 2000 a report by South Bank University found that 300,000 jobs in the East of England depended on exports to the EU.

[1] The European Union is the East of England's most important export market. In 2001, 53% of goods exports from the East of England went to countries in the EU, bringing £10.3 billion a year into the region's economy.

[2] In 2001 there was an average of 1,673 companies in the East of England exporting to the EU each month.

[3] Tourism is vital for the region's economy, 47% of tourists who visited the East of England in 2001 came from the EU.

[4] Exclusion from the euro is costing jobs in the East of England: According to the GMB, 2,513 manufacturing jobs were lost in the East of England in 2002.

[5] Research by Britain in Europe showed that between 1999 and 2001 currency volatility and Britain's isolation from the euro were factors in an estimated 5,300 jobs losses in the East of England. In December 2000, 2,200 jobs were lost at Vauxhall in Luton. The 95-year-old Luton plant has paid the price of falling demand for its ageing Vectra model and the adverse affects of the strength of sterling. From being one of the lowest-cost factories in General Motors' European operations, the rising pound has made Luton one of the least competitive. At the time Nick Reilly, Vauxhall chairman, admitted the pound "has not helped".

[6] On 16 January 2003, Jungheinrich, the German industrial truck maker announced that it is to close its plant in Leighton Buzzard, Bedfordfordshire, with the loss of 180 jobs. The German manufacturer blamed Britain's reluctance to join the euro and the volatile exchange rate outside the euro as the reasons for the closure. Steve Jeff, managing director of Jungheinrich's UK arm, which exported half of its production, said that Òconsolidating all our manufacturing in the euro-zone was an attraction. The company will now be moving all its production to plants in Germany and France

[7] In February 2003, Technotrans Graphics, a Colchester printing company announced that it was closing down its manufacturing business in the town and moving it to its headquarters in Sassenberg in north-west Germany with the loss of 39 jobs. In explaining the losses, managing director John Stacey said "the global downturn in the printing industry, costs of manufacture in pounds and the euro debate all contributed to the final decision".

[8] Isolation from the euro is damaging investment into the East of England: In 2001/02, 54 new projects were started in the East of England, creating 1120 new jobs in the region. This represents a fall of 4% in terms of new projects and a fall of 64% in terms of new jobs created in the region, compared to 2000/01.

[9] The East of England receives millions of European funding each year: The East of England will receive £271 million of EU funds from 2000 to 2006. The East of England will receive £84 million to assist with economic regeneration. The East of England will receive a further £176 million to help combat long-term unemployment and to assist those excluded from the labour market. European funding goes to a variety of projects and organisations, for example: The Regional Centre for the Advancement of Manufacturing and Technology (AMT) in Essex, has received EU funds to help SMEs in the area become more competitive.

Over 200 jobs have been created or safeguarded as a result of the AMT Centre and over 300 companies have been assisted. The North Lowestoft Heritage, Economic and Regeneration Scheme will receive £409,699 in European funding. The Norfolk Nelson Museum is receiving £30,000 in European funds to house over 600 pictures, prints, letters, books, documents, medals, and artefacts directly relating to the life and times of Admiral Lord Nelson.

Luton is receiving £4.2million of European funding. £1.2million is for a project to help the communities of Dallow, Biscot, High Town and Lewsey. £2.9million will go to support new small businesses in Luton and Dunstable and help create existing ones to grow. This money is in addition to the £2.2million Objective 2 funding for projects in Luton. For more information: http://www.go-east.gov.uk/Funding/

Notes:

[1] UK jobs dependent on the EU, Brian Ardy, Iain Begg and Dermot Hudson, European Institute, South Bank University.

[2] HM Customs & Excise

[3] HM Customs & Excise

[4] Star UK, 2001 Tourism Facts, http://www.staruk.org.uk/

[5]GMB,http://www.gmb.org.uk/press_office/display.asp?id=205

[6] Financial Times, 14 December 2000.

[7] The Independent, 17 January 2003.

[8] Essex Evening Gazette, 4 February 2003.

[9] Invest UK