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  1. ITV Report

What the Euro troubles mean for the Midlands economy

Lord Digby Jones - an expert on the Midlands economy Photo: ITV Central

The difficulties with the Euro may not be disastrous for the Midlands economy according to business experts - as long as firms find new markets outside Europe.

Businesses are now chasing the money in China, India and America.

For Jaguar Landrover, Europe accounts for just 15 per cent of its business - China, America and Brazil are now where the roar of Jaguar is loudest according to Grant Adams. He's a parts supplier to Jaguar Landrover.

On the back of orders for the new Evoque he's taken on 120 more people at his plants in Coleshill and Tyseley.

In China, 30,000 people have put down cash deposits for a new Landrover Evoque, according to Digby, Lord Jones of Birmingham. He's a corporate ambassador for the firm and he's also a member of ITV's Business Club which has been debating the issue of the Euro.

He doesn't think the Euro - or more specifically the collapse of the Euro - will mean Armageddon for the Midlands economy as long as British firms find customers elsewhere. We used to export 40 per cent of British goods to Europe - that's dropping and will continue to drop. the new customers are in China, Brazil, India and America.

Where we might catch a cold is through the banks. Britain has lent about £6bn to French banks, which in turn have leant that to Greece. If the Greek economy collapses British banks may not get back what they leant.

But according to the ITV Business Club members, with some nifty footwork British firms could nimbly side-step Euro countries with no cash and court new customers in cash-rich China, India and Brazil.

And it's not all bad news - summer holidays will be cheaper this year.

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