Last month the European Parliament approved the applications of Malta and Cyprus to join the euro. The steadily growing number of countries adopting the single currency makes Britain’s position outside the euro look increasingly conspicuous.

A series of multinationals, including Ford, Toyota, Honda and Unilever have all expressed concern about the effect of Britain's non-entry on their ability to invest and maintain their manufacturing bases in Britain. Indeed, a month ago the chief executive of Honda, Takeo Fukai, told the Financial Times that for Honda, Britain's apparent reluctance to join the euro meant that the company had "no plans to expand". However, in the same breath he added that "we may change our minds if Britain were to join". Meanwhile, Honda's rival Nissan has often said that Britain staying out of the euro threatens jobs at its Sunderland plant.

Companies with UK bases that sell good to the EU have to bear hedging and conversion costs of currency that our German, French, Dutch, Irish etc. competitors don't, leaving the latter with a clear advantage.

Moreover, the euro is rapidly establishing itself as the world’s strongest currency and has now displaced the US dollar as the main denomination for world trade, accounting for 45% of the global market compared to 37% for the dollar. Indeed, it is likely that world commodity prices will soon be denominated in euros rather than dollars. It is becoming increasingly clear that for the UK, staying out of the euro means being economically hamstrung.