Motor group Ford was paying an "incredible penalty" for Britain's absence from the European single currency and its UK competitiveness would be hurt if the nation did not join, it said yesterday.
Ford president and chief operating officer Mr Nick Scheele told Britain's top business conference that every minute Britain delayed adopting the euro was hurting the UK manufacturing operations of the world's second-largest carmaker.
In a speech to the Confederation of British Industry, Mr Scheele said the economic case for Britain joining the euro was growing more urgent, with the country "slipping further and further behind" trade in euro-zone countries.
"At this point, every minute of delay in adopting the euro is detrimental to our employees, our business partners, our customers and those people touched by our presence - as well as to Ford and to many other companies that need a stable and competitive landscape," Mr Scheele said.
"If nothing changes I can only see a steady erosion in the competitive position \ our British operations over time - a scenario that will play out with virtually every other company that has exports or has euro-based companies as prime competitors."
Pro-euro business group Britain in Europe said it wholeheartedly supported Mr Scheele's remarks. "It would be good to hear them echoed by the government," said Siemens UK chief executive Mr Alan Wood.
Other business leaders at the CBI meeting argued that fundamental differences in Britain's economy threw up barriers to joining the euro. The CBI itself does not have a stance.
"Europe hasn't delivered what it promised to make the euro an attractive option for Britain where we have low inflation, economic stability and our public spending is under control. I see very few benefits in Britain joining the euro," said Mr Steve Hindley, chairman of property firm Midas.
Some bosses of foreign firms said Britain's flexible labour laws made it a more attractive base than continental Europe.
Many businesses complain sterling's strength against the euro makes their exports relatively expensive and that companies within the euro zone enjoy more certainty on exchange rates.
Euro supporters pounced on a survey yesterday that showed British firms were more likely to invest in euro-zone countries than in their home market. The MORI poll found 53 per cent of those businesses questioned planned to invest in other EU states while only 48 per cent intended to expand operations in Britain.
