SMEs told to step up euro preparations

Date: 06/07/2000

By Peter Chapman

ECONOMICS Commissioner Pedro Solbes will next week warn small companies in the EU that they risk chaos if they fail to prepare for the introduction of euro notes and coins in time.

The hard-hitting message will be contained in the first of a series of reports designed to cajole euro-zone governments and companies in the single-currency area into making the change-over to the new money in January 2002 as smooth as possible.

"We are a little bit worried," said a European Commission expert. "Small and medium-sized enterprises need to know what it means for them - for their IT systems, training staff and changing prices. Big companies are better prepared. They started long ago. They have not all made the switch to the euro, but we can leave it to them."

Next week's report on the "practical aspects of the euro" is also expected to set out what industry has already done to adapt its systems to the new currency. "So far this is modest," said the official.

He added that the institution would follow this up with

another paper in the autumn highlighting key issues which should be addressed before it is too late. This report, which is due to be unveiled at an informal meeting of EU finance ministers in September, is likely to urge banks and financial institutions to make a definitive switch to euro accounts for their customers well before January 2002.

Solbes is also considering issuing a formal recommendation to member states before the end of this year to take final steps to remind industry and the population at large of the legal situation on 1 January 2002.

One key issue will be the accounting requirements for tax returns due in 2002 but relating to 2001, when the new notes and coins will not yet be in circulation.

Economics Commissioner Pedro Solbes is to warn small companies in the EU that they risk chaos if they fail to prepare for the introduction of euro notes and coins in time.