The British government's disclosure that it is being pressed by inward investors for an early decision on adoption of the euro reflects government concern about the prospects for fresh investment.
Paradoxically, overseas investment in the UK has increased since the euro was launched in 11 states in January 1999, prompting anti-euro campaigners to claim that investors are unconcerned about Britain's self-exclusion from the system.
As the Business For Sterling lobby group put it (in essence) yesterday: if inward investors are so concerned about the euro, why are they queueing up to invest in the UK?
The official view is that investment has continued to grow only because most big overseas companies are convinced Britain will enter the system early in the next parliament.
Officials say investors were impressed by Prime Minister Tony Blair's statement last February, setting out a national changeover plan for the euro which was widely seen as the start of a campaign for entry early this decade.
However, they say big investors have since become increasingly concerned at the government's unwillingness to campaign positively, especially after Opposition successes in the European elections in mid-1999.
That concern was expressed vigorously in a private meeting in November between Mr Blair and senior members of the Keidanren, the main Japanese business organisation. The delegation said that the high sterling exchange rate was making many Japanese companies' British operations uncompetitive, and called for euro membership as soon as possible.
There is no single view about the euro among Japanese executives. Mr Nobuyuki Idei, president of Sony, told the Financial Times that the UK should stay out because economic pressures could cause a collapse.
But the delegation included top executives from many of the biggest Japanese investors, including Nissan, Fujitsu, Fuji Bank, Sumitomo Bank and Mitsui. Mr Norio Ohga, Sony's chairman, even hinted that the company might shift investment from Wales to Hungary because of sterling's strength.
Japanese companies have been most voluble because their investments were deliberately sited in the UK to access the wider European market. But they are not alone. Officials say that concern about Britain's euro exclusion is also being expressed by American and European companies.
"They all want us to go in, and there is a lot being said about directing future investment elsewhere if the prospects of early entry begin to recede," an official said.
The disclosure of pressure on the government from inward investors was made by Mr Stephen Byers, Trade and Industry Secretary. According to a colleague of Mr Blair, Mr Byers's remarks are supported by the Prime Minister.
He said the disclosure was not the beginning of a concerted government effort to promote the euro, but that "what you are going to see is us taking every opportunity to make the case for it".
The political significance of Mr Byers's comment is that it contradicts the widespread assumption among eurosceptic newspapers in London that Mr Blair is poised to become more hostile to monetary union.
Although treasury officials are increasingly concerned that the UK economy will not have converged sufficiently with the euro zone to permit membership in two or three years, ministers reiterated that the decision on this would take place after the general election.
Until then, Mr Blair will remain a cautious proponent of the single currency, allowing his colleagues to show varying degrees of enthusiasm.
