One could be forgiven for thinking that Tony Blair, Gordon Brown,
Charlie Whelan et al have performed a passable version of the hokey
cokey when it comes to the Government’s position on European Monetary
Union.
The apparent indecision and contradictions sent jitters through the
City, supplied ammunition to Labour’s political opponents and was grist
for the satirists.
The Chancellor’s clarification of policy - that the UK’s participation
in EMU had been ruled out in the lifetime of this Parliament allayed
Eurosceptic concerns that the Government was going to rush into currency
union. But Brown has given the clearest indication yet that the UK will
eventually accept the euro.
As each day goes by it becomes ever clearer how momentous the advent of
EMU will be, whether the British people elect to join or not. In or out,
there will be major ramifications for UK business and consumers -
everyone will feel the impact.
The communications task will be immense, especially if the decision goes
in favour of EMU and sterling is supplanted by the euro. With this in
mind a number of consultants are already working at developing expertise
in EMU-related communications issues with a view to selling this to
clients.
Shandwick director of international marketing Ian Rumgay has been
developing an EMU ’package’ with an international perspective that he is
marketing to clients such as retailers. ’It’s the biggest communications
job in Europe since World War Two, if not ever,’ says Rumgay. ’It’s
wholesale change. And even if the UK doesn’t come in it will still be
affected.
’With decimalisation there were lots of accusations of rounding up
prices and profiteering. All this may occur again, but on a larger scale
- for the first time this will be cross-border and you will be able to
compare like with like. People will want to know why the same product
costs more in London than in Paris, or vice versa.’
Rumgay believes the issue of EMU has gone beyond the public affairs
arena and now needs to be addressed in business-to-business, consumer
and corporate PR terms. Although he doesn’t think there is an ’ostrich
mentality’ at work he argues there is a lack of preparedness among those
outside the financial sector.
There is certainly a sentiment among many consultancies that the
inconclusiveness as to when or even if the UK will take part in EMU
makes formulating advice on the subject at this juncture in time pretty
pointless.
’It’s probably too early,’ argues Citigate Communications deputy
managing director Jonathan Clare.
’The uncertainties are so great that it’s difficult for a company to
know what the position might be.’
’Anyone who claims expertise in EMU at this stage is pulling off a
marketing stunt,’ says one senior financial PR man. While a public
affairs head at another large consultancy says his company has decided
that it will not as yet look at developing specific EMU issues
expertise, but adds: ’There are going to be the Shandwicks and Hill and
Knowltons of this world, who have former Treasury ministers working for
them, who will probably be there.’
At Financial Dynamics, where a team is working on an EMU-related brief
for one client in particular, the issue is said to be ’a top priority’
for many other clients as well. And personal finance specialist Lansons
claims the issue is unavoidable because it is already affecting
investors in areas such as Government bonds - where interest rates will
come together under EMU.
Plainly such factors have to be dealt with in any communications with
investors, who are showing concern over the impact EMU is already having
on yields for certain kinds of investments. Such concerns will only be
heightened as the first wave of EMU draws closer. And should the UK
indeed enter in the second wave, that interest will snowball into a
clamour for information as the great majority of adults in this country
demand to know what the introduction of the euro will mean specifically
in relation to their savings, pension funds, mortgages and the like.
Burson-Marsteller claims it has already acquired significant expertise
in EMU and draws a parallel between this and environmental issues, in
that it sees the former becoming as important an area of specialisation
as the latter at the consultancy.
’In a relatively short time a lot of people have woken up to the fact
that it will happen,’ says B-M senior associate Nick South. ’A lot of
companies see it as a platform to give views; to use the intense media
interest in EMU to their advantage.’
South believes it is essential for business to play a key part in
explaining the benefits of EMU in the coming years. It is a view
endorsed by Stephen Lock, managing director of public affairs at Ludgate
Communications.
’It’s important that to ensure the success of the referendum you have to
take the shock out of the idea of change,’ says Lock. ’You have to start
the education process long before people have to decide on it. This has
been very successful in France and Germany.’
It is in some way fitting that, like the Conservative party, the
Government and the public at large, the PR consultancy sector should be
split over EMU. Perhaps the PRCA should hold a referendum to set policy
for the industry.
