New Financial Times/ Harris Poll of adults in five countries shows a dichotomous economic outlook for 2007

Large numbers feel the introduction of the Euro has had a negative impact on the economy, many saying they prefer their national currencies

Concerns about job stability exist, but some countries optimistic about pay raises in the coming year

LONDON and Rochester, N.Y. – 7 February 2007 – This latest Financial Times/Harris Poll shows that European adults surveyed in five countries are split about the economic outlook (23% saying they’ll be worse off, 26% saying they’ll be better off), but a plurality (43%) expects to be about as well off financially at the end of 2007 as they are today. Adults in Great Britain and in Spain were more optimistic (31% and 38%, respectively, saying they’ll be better off).

The Euro effect

More than half of EU adults surveyed feel that the introduction of the Euro has had a negative effect on their country’s economy. The Italians and the French are least impressed with the Euro (77% and 76% respectively stating it has had a negative impact). German and Spanish adults were proportionally more likely to believe that it has had a positive effect (25% and 22%, compared to the overall average of 16%)

In stark contrast, the number of adults who feel that the introduction of the Euro has had a negative impact on the EU as a whole drops to just three out of every 10 adults (29%). Whilst 25 percent are unsure of the impact, over a third (37 %) feels that the introduction of the Euro has had a positive impact on the EU economy.

Among the four countries surveyed which have exchanged their national currency for the Euro, one-quarter of adults (26%) state a preference for the generic currency, whilst more than half (54%) actually prefer their old national currencies. Nearly two-thirds (64%) of German adults state a distinct preference for their Deutschmark.

The employment outlook

Just under half of adults (45%) in full or part-time employment across five countries surveyed expect to receive a pay raise this year. Spanish and British adults are most likely to expect a pay raise (65% and 66% respectively), whilst 52 percent of Germans are not expecting a pay raise this year.

Of those expecting to receive a pay raise, four out of every 10 adults in full or part-time employment (40%) expect to receive the pay raise to be more or less in line with inflation. German and French adults are most likely to expect it to be above the rate of inflation (30% & 27% respectively).

Almost a quarter of adults in full or part-time employment are concerned that they may lose their job this year (24%). More Italians (33%) and Spanish (29%) were concerned. Of those concerned about losing their jobs this year, the majority (76%) are moderately or highly concerned about losing their job. The French are the most likely to be highly concerned about this eventuality (46%).

Overall, more than half of adults (53%) feel that the influx of migrant workers has caused a decrease in wages in their country. German workers (69%), in particular, feel that migrants have caused a reduction in wages.

Willing to work longer for guaranteed pension?

Half (50%) of full and part-time employees in five countries across Europe would be prepared to work a longer week in return for a guarantee that pension promises would be fulfilled. The British are least likely to be interested in doing so (27%) while the French are most likely (65%).

Full and part-time employees are less prepared to sacrifice a pay increase in return for a guarantee that pension promises will be fulfilled, with just under a third (32%) stating they would be prepared to do so. Workers in Great Britain are the least prepared to sacrifice a pay increase in return for a guaranteed pension with 63 percent stating they would definitely not be interested in such an offer.

Wage gaps

There are some significant variances that can be seen amongst countries when measuring opinions about the difference in wages between senior executives and average workers. Majorities across the five countries surveyed say the gap is too large, whilst German adults (11%) feel that the gap is too small, compared to the average of six percent across the five countries who feel that way. Spanish and Britons are most likely to state that the pay gap is too large (84% and 80% respectively).

Other results from the study show:

Almost half (45%) of EU adults surveyed feel that the introduction of Bulgaria and Romania is a negative move, with almost six out of 10 Germans (59%) having negative feelings about the new member countries. Only a quarter of adults across the five countries feel that the introduction of the new countries will be positive, with Italians (39%) and the Spanish (31%) showing most favor;
The U.S., China and Iran top the list of countries that adults in five countries in Europe feel are the greatest threat to global stability.

TABLE 1

EMPLOYMENT STATUS

Q612_1 "Which, if any, of the following best describes your employment status?"

Base: All E.U. adults in five countries

	Five-country average	Great Britain	France	Italy	Spain	Germany
Base	5,314	1,120	1,103	1,022	1,040	1,029
	%	%	%	%	%	%
Employed full time	49	47	49	53	50	44
Student	11	8	11	14	13	12
Retired	11	14	10	6	11	12
Employed part time	11	12	9	10	9	12
Housewife/ Househusband	8	7	7	7	11	8
Self-employed	8	7	4	12	8	7
Not employed, but looking for work	6	4	8	4	6	8
Not employed, unable to work due to disability /illness	2	4	2	*	1	2
Not employed and not looking for work	2	1	2	*	3	2