Current weaknesses in the eurozone should not obscure the long-term benefits for the UK if it adopts the single currency, Trade and Industry Secretary Patricia Hewitt has said.

There are huge advantages for British business, and in particular manufacturing, in joining the single currency Patricia Hewitt

Speaking during a visit to Thailand, Ms Hewitt said there would be "huge advantages" for business if the UK joins the euro.

And she suggested that Britain could miss out on investment if it opts against adopting the currency.

Tests

Prime Minister Tony Blair and Chancellor Gordon Brown must decide this year whether to call a referendum on joining the euro.

The decision will follow the Treasury's assessment of five economic tests which will examine the possible effects of joining the currency on jobs and investment.

Many political observers believe the government will decide the tests - which must be ruled on by 7 June - have not yet been met.

They say Mr Blair will steer clear of calling a referendum this year - with some suggesting that the prime minister has ruled out a referendum in this parliament.

Opponents of euro entry point to weak growth in the eurozone as one reason why the UK should stay out of the currency.

The five tests

Has the UK's economy converged with the euro countries? Is there enough flexibility to deal with problems? Will joining the euro encourage investment? Will it help the financial services industry? Will it promote employment and growth?

But Ms Hewitt said: "Clearly there are some real uncertainties about the eurozone economy at the moment.

"Growth is very slow in the eurozone. But the decision about membership of the single currency needs to be made for the long-term not on the basis of the immediate and short-term situation."

She said factors such as the exchange rate played a big role as companies examine whether to invest in the UK.

Factor

"There are huge advantages for British business, and in particular manufacturing, in joining the single currency," she said.

"Exchange rate stability... price transparency and so on.

"The whole issue of the exchange rate is certainly a factor, not the only one but an important one, in the location and investment decisions that companies are now making.

"It is one of the factors that we will take into account as we complete our assessment of the five economic tests."

Ms Hewitt said there was "an absolute clear" political case for joining the euro.

In his new year message, Mr Blair said euro entry was the UK's "destiny", but he also heartened anti-euro campaigners by pointing to concerns over current weaknesses in the eurozone.

Swift

A survey published on Wednesday suggested that about half the businesses in the UK want the government to wait and see how the euro develops before deciding to join the currency.

The British Chambers of Commerce (BCC) said that 49% of firms wanted Chancellor Gordon Brown to take his time over the issue even if his five economic tests were satisfied.

The organisation's survey found that 35% would support joining the euro if the tests were met.

But 13% did not want to be part of the single currency under any circumstances.

Larger companies - with 250 or more employees - tended to be more positive with nearly half supporting swift adoption of the euro.

But smaller firms were less likely to be in favour, with half of businesses employing between one and 19 people saying that the UK should wait.