Blair Warned on Euro by Japanese Giant Matsushita

Tony Blair was told by the President of Matsushita Electric Industrial Company that the UK must make up its mind on the euro or face a loss of foreign companies, including Japanese firms. The warning comes as the world's largest consumer electronics maker has already shifted TV production from England to the Czech Republic due to the high pound, which makes its products less competitive in the global market. Matsushita employs 5100 people in the UK, with its main bases in Cardiff and Berkshire.

Key Takeaways:

• Matsushita, the world's largest consumer electronics maker, has warned Tony Blair that the UK must make up its mind on the euro or face a loss of foreign companies.
• The company has already shifted TV production from England to the Czech Republic due to the high pound, which makes its products less competitive in the global market.
• Matsushita employs 5100 people in the UK, with its main bases in Cardiff and Berkshire, where 2300 and 1000 people work respectively.
• The pro-euro campaign, Britain in Europe, has seized on Mr. Nakamura's comments, highlighting the risk of shutting the door on the euro forcing foreign investors to leave Britain.
• Every week new warnings of the damage the over-valued pound is doing to British manufacturing emerge, with thousands of jobs lost and new investment at risk.
• Matsushita does not want any subsidies, and other companies, like Toyota and Honda, may also demand the same treatment if Nissan receives aid.
• Nissan has already said it is buying fewer British car components because of the relative strength of sterling vis-a-vis the single currency.
• Toyota and Honda have also decided to source more parts from within the eurozone.
• MPs and forecasters have highlighted that the British economy is nearing convergence with those in euroland.
• EU Commissioner Chris Patten has claimed Britain would sacrifice economic success and international influence if it did not join the euro.
• Foreign Secretary Robin Cook believes British membership of the single currency is "inevitable".

Statistics:

• 5100: The number of people employed by Matsushita in the UK.
• 2300: The number of people working for Matsushita in Cardiff.
• 1000: The number of people working for Matsushita in Berkshire.
• #50m: The proposed grant to Nissan to persuade it to make its new model of the Micra car in Sunderland.
• #200m: The worth of British car components being bought fewer by Nissan due to the relative strength of sterling vis-a-vis the single currency.

Sources:

• President of Matsushita Electric Industrial Company, Kunio Nakamura.
• Reuters news agency.
• Britain in Europe campaign director, Simon Buckby.
• Nissan's president, Carlos Ghosn.
• EU Commissioner, Chris Patten.
• Foreign Secretary, Robin Cook.
• Andrew Fraser of the Invest in Britain Bureau.
• Sir Stephen Gomersall, Britain's ambassador to Japan.