One of the arguments used to try and persuade Brits to sign up for the euro was that failure to join the eurozone would hit foreign investment. Under the circumstances, therefore, these data are a little awkward:

“Foreign investment in France and Germany, the two largest economies of the European continent, fell sharply in 2004, according to figures released yesterday (23 June) by the Organisation for Economic Cooperation and Development (OECD) in Paris. In France, inward investment almost halved last year, falling from $43bn to $24 bn. In the case of Germany, foreign investors actually withdrew about $39bn from the country, reversing the inflow of $27bn recorded in 2003, the OECD said in the report “Trends and recent developments in foreign direct investment”. On the other side of the Channel, foreign direct inflows into the UK more than tripled, coming up to $78.5bn in 2004, according to the report.”

The reality, of course, (always ignored by the euro’s propagandists) is that foreign investors look at far more than currency before taking their decision. Overregulation, and the low productivity and sluggish growth to which it contributes, will outweigh any advantage to be derived from sharing a funny money with a number of other countries.