There is disagreement about whether or not the UK is suffering from being outside the eurozone.

Figures released by the European Commission in June show that the UK share of foreign investment from outside the EU fell from 48% of the total in 1998 to 25% in 2001. There has also been a decline in the UK’s share of cross-border investment from other European countries.

However, a report released by Ernst & Young (E&Y) revealed that, although the number of inward investment projects into the UK declined in 2002 by 5%, it remains the largest market for inward investment in Europe, receiving 19% of the total. Investment into the eurozone fell by 13%.

The manufacturing sector is regarded as suffering the most from being outside the eurozone but the E&Y report showed that the UK has the highest market share for auto assembly projects in Europe. Barry Bright, head of the Location Advisory team at E&Y, said: “The issue of euro membership appears to be a bit of a damp squib as far as inward investors into Europe are concerned.”

David Godber, general manager at Nissan Design Europe, claimed that “bureaucracy is killing inward investment into the UK” and the “euro is the key barrier to further inward investment in the UK”.

Nevertheless, Nissan chose to locate its European design centre in central London’s Paddington Basin because of its “multi-cultural backdrop and the access it provides to important and influential sources in contemporary art, architecture, fashion and design movements”.

London remains the preferred city/regional destination for investment in Europe with a 33% increase in projects from 2001.