The high cost of joining the euro

In the article by George Pitcher, entitled, “Will Japanese Car Makers last in a euro-isolated UK?” (MW January 11). He does not give any indication of the price that sterling would have to enter the euro, to make Nissan competitive.

Surely, the price of entry is crucial, otherwise, going in at today’s rate could lock in many years of competitive disadvantage.

The current exchange rate for sterling with the euro is too high, but the question would be, what would be the correct rate. Moreover, I cannot see our partners in Europe agreeing to a discount.

The problems with the car market is mainly over-capacity, and the prices are actually falling, and it’s difficult to see how being in the EMU would correct this problem.

Dr J C Dwek CBE

Cheshire

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