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So the euro is responsible for making more than 2,000 full-time and part-time workers redundant (newly unemployed) in the space of a few weeks. Or is it? The bulk of the jobs to be lost are to come from the Panasonic plant in Cardiff, Wales, where up to 1,100 jobs will go. The rest are spread amongst Sony, Oki and Hitachi, although the actual number of layoffs at Hitachi has yet to be confirmed.

All the firms are Japanese and all have cited problems related to the euro as one of the reasons behind the redundancies. Panasonic blamed uncertainty over Britain's entry into the euro as a reason for the cuts.

Sony said it will cut 400 jobs at its south Wales plants in Bridgend and Pencoed, focusing more on the production of higher-value products such as digital TVs and digital cameras. "It is not only the euro and (it would be) a mistake just to blame one thing," said Bill Vestey, general manager of public affairs at Sony.

"The euro exacerbates the problem ... The euro has changed from when it started in January (1999) at 71p (pence) to around 58p. A 20 percent drop. For export you need a stable exchange rate," Vestey said.

If all else were equal, it would mean competitors on the European mainland have a 20 percent cost advantage. However, other issues have also led Sony to cut jobs, including an impending [pound]500,000 ($711,541) climate-change tax levy, Vestey said.

He admits, however, that simply joining the euro now would not help. It has to be when exchange rates are closer together, he says.

At Panasonic there are hints that the firm may move all its production out of the United Kingdom if the situation with the euro does not change. At its Cardiff plant where the jobs are to go, the firm offered all 1,800 permanent staff at the plant voluntary redundancy, with 1,000 applying. Panasonic said it will cut 700 permanent workers and 600 temporary posts at the plant. Production is being switched to the firm's site in the Czech Republic.

There is also a genuine change in the type of televisions being produced, which has brought about the job losses, according to Malcolm House, chief statistician at the Federation of Electronics Industry. "The increase in the market for 16:9 (aspect ratio) TVs (standard for digital televisions) is happening around the European Union..."

The point is that production of such TVs has become an established process, certainly repeatable in countries where there is not the high local-currency-to-the-euro ratio. Another point is that companies may not want to install new equipment for the production of 16:9 TVs in old 3:4 factories in plants located where, once again, there is an inherent disadvantage to manufacture.

So the United Kingdom needs to join the euro for the sake of industry and workers, but can't afford to do so at the current exchange rate. Any bright ideas on this situation can be sent to the Labour Government on a postcard.

Alex Mayhew-Smith is a writer for Electronics Weekly, a sister publication of Electronic News.

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