French Firms Urged To Improve Readiness For Euro

The study, based on a survey of several large companies, found that most have not yet seriously considered the practical commercial impact of the euro, in spite of the government's determination that it should come into effect in 1999. A report based on the study warns that companies' senior executives must become more involved. In many companies, any preparatory work for the single currency is being undertaken by junior and middle managers. The report also indicates that the logistics of the three-year period for the switch to the euro are likely to be extremely complicated for the corporate sector.

In particular, it observes, big companies are likely to take different approaches to the use of the euro between 1999 and 2002.

 

Some groups plan to use the euro immediately, and others want to delay until 2002, which could create severe difficulties for their banks, suppliers and customers. The findings have emerged as part of a detailed study of 20 of France's largest companies, including France-Telecom, Renault, Rhone-Poulenc, Promodes and Electricite de France, for internal distribution within the Banque de France and the ministry of finance.

French officials insist that problems revealed in the report will be faced by all countries participating in Emu.

We think this is the first study of its kind in Europe