How will the introduction of the euro affect UK companies?

  • Euro currency will be introduced on 1 January 2002
  • The national currencies of the 12 EU states adopting the euro will cease to be legal tender on 28 February 2002
  • UK firms will be affected even if not dealing with these 12 countries directly
  • After 1 January 2002, customers and suppliers may only wish to deal with firms using the euro
  • The euro should create price transparency and lower transaction costs
  • The extent in which a firm deals in euros will dictate the level of change needed to its IT systems to meet the specifications

Source

Electrical and Mechanical Contractor

Postscript

Victoria Jonson is with ACCA's Small Business Unit.