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Concern is growing that Midlands companies face being hit by protectionism and investment cuts because of the euro crisis, a special Insider event has heard.

The You and the Euro debate, held at Cooper Parry's office in Derby, brought together a panel of experts to field concerns from 50 Midland business leaders. It came just as the euro crisis deepened further with the mass downgrading of European countries' credit worthiness, particularly France and Italy.

Members of the panel were worried about growing protectionism among both countries and companies

"That word 'protect' pops up and the worry is that it becomes protectionism," said Peter Hogarth, regional director of UKTI East Midlands "We're seeing tightening payment terms. That's dangerous because when you get that creeping element of protectionism, among companies or governments, that's disastrous for trade and for all."

"We've noticed a greater inclination for people to buy from their own countries," added Mark Llewellyn, financial director of Belper's The Litchfield Group. “However we're also more cautious about the credit we offer in the UK and eurozone. Recovering a debt in the UK is difficult enough: getting it sorted overseas, even in the EU, is much harder."

The experts also expressed concerns that the euro's crisis was having a serious impact on investment decisions.

"Many companies are very reluctant to invest unless there's a clear and cogent case," said George Cowcher, Derbyshire and Nottinghamshire Chamber of Commerce chief executive. "They take a wait-and-see attitude, but they've been waiting and seeing for 18 months."

"It's essential for Britain the euro does work because if there was a complete break up of the eurozone it'd be a disaster," added Patrick McLoughlin, MP for Derbyshire Dales and chief whip at the House of Commons. "I don't agree with those who look upon a break-up as fantastic because they think it'll cause the death of the EU. It's not in our interests to see great turbulence in the euro."

An extensive report on the breakfast will be run in the next edition of Midlands Business Insider.