92/1998
8 June 1998
GETTING BUSINESS READY FOR THE EURO FACTSHEETS TO HELP FIRMS PREPARE FOR THE INTRODUCTION OF THE SINGLE CURRENCY
Ten new factsheets to help businesses prepare for the introduction of the single currency on 1 January 1999 were published today. These include factsheets on strategic and practical issues for UK businesses with information on foreign exchange rate risk and conversion between sterling and the euro once economic and monetary union (EMU) begins.
Commenting on publication, Economic Secretary Helen Liddell said:
"The single currency comes into effect in less than seven months. It will offer both opportunities and challenges for British businesses. They need to start their preparations now if they are to be fully ready for these.
"The Government is committed to helping business to compete successfully against firms trading within the euro zone. The factsheets published today are an important helping hand for them.
"Now, for the first time, small and medium-sized companies have readily available concise information from Government on key facts about EMU, what it will mean for them, and on working effectively with the single currency. This will help them to consider whether and how they may be affected and, if they are, how to respond.
"Over the last few months, Government Ministers and the Treasury Euro Preparations Unit, together with DTI, have been meeting small and medium-sized companies to find out how they are preparing for the euro and what help they would like from Government. These factsheets are the first instalment of the help that they have asked for."
The first ten fact sheets are:
- Why you need to know about the euro
- What is EMU ?
- The UK position on EMU
- The introduction of the euro and the implications for the UK
- Is your organisation affected ?
- Strategic and practical issues for UK businesses
- Planning checklist
- Foreign exchange rate risk
- Conversion between sterling and the euro
- Where to go for more information
Publication of the factsheets was announced at a Government Business Awareness Seminar in Glasgow to help smaller businesses find out what the introduction of the single currency may mean for them. This is the third of a series of four. The fourth will be hosted by DTI Minister Barbara Roche at the Commonwealth Institute in London on 23 June.
The factsheets are available from a Government information line on 08456 01 01 99 and, with other euro-related material, on the Internet on the Treasury euro website at http://www.euro.gov.uk.
Further factsheets covering topics related to business strategy, such as marketing, pricing, accounting, tax and the euro and IT are in preparation.
NOTES FOR EDITORS
1. In December 1997, the Government set up the Euro Preparations Unit (EPU) in HM Treasury to provide support for businesses in preparing for the euro and to lead preparations in the public and private sector. The aim is to provide information that small and medium sized firms want and to equip intermediaries who are best placed to offer individual professional advice.
2. The Government has already taken steps to increase awareness of euro-related issues. These include :
- circulation of 70,000 copies of the Treasury guide 'EMU: Practical Information for Business' in July 1997;
- establishment of the EPU and a Business Advisory Group, which reported to Government in early January 1998;
- publication of the booklet "The Euro and Your Business" in March 1998, including diagnostic questions to help firms to consider how they will be affected by the single currency;
- focus group meetings across the country for Lord Simon, Minister for Trade and Competitiveness in Europe, to assess small and medium size business preparedness for the single currency and what help business needs from Government.
- four high level Ministerial business awareness raising seminars (of which today's meeting in Glasgow is the third).
3. The EPU is developing communications with business with the help of a steering group, whose members include representatives of business and the major business organisations, to work with trade associations, Chambers of Commerce, Business Links and others to help businesses prepare for the euro.
4. The EPU commissioned a Business Omnibus questionnaire of about 1,000 small businesses and 300 medium-sized businesses. This shows that only 11% of these knew that the single currency starts on 1 January 1999, and only 5% had done anything to prepare for it.
5. Media enquiries should be directed to the Treasury Press Office on 0207-270 5188.