A BLACKBURN accountant claims the weakness of the Euro is causing problems for many East Lancashire manufacturing firms and posing a double-edged threat to their competitivenes.

While a relatively strong pound makes exports more expensive, the low level of the Euro gives firms in the single currency zone a price advantage selling into British markets.

Jeremy Stirrup of the North West Society of Chartered Accountanst said: "There's been a lot of talk about the strength of Sterling, but its really a double whammy.

"Because of the weakness of the Euro firms can sell ino the UK more cheaply, which means many of our manufacturers are not only finding it hard to compete abroad, but in the home market too." Mr Stirrup, a partner in Blackburn chartered accountants Porter Matthews and Marsden, said the difficulties faced by firms in East Lancashire, with a high proportion of manufacturers, had been largely overlooked.

On the other hand, the threat of the region's firms being "bounced" into Euro trading had failed to materialise.

Mr Stirrup said remarkably few reported any pressure from either suppliers or customers to do business in Euros.

He said: "There was the fear that subsidiaries of European companies would press for trading in the Euro, but is hasn't happened to a significant degree."

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