E -day is here at last. The electronic or virtual euro
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has been used by businesses since January 1999, but this week the euro arrives for real as 310 million people in 12 countries get to grips with the single currency. How will this affect hauliers? According to the Freight Transport Association, a strong pound against the euro has in the past affected haulage rates for UK-registered international operators. At the moment it's hard to tell how things will go," one haulier says.
Another adds: "It will make it much easier to compare prices of coke or chocolate from country to country. There's the convenience factor, too. There is no longer any need to queue up at borders to change money."
The office work should be easier as well. Nick Charlesworth of Kent-based Laser Transport says: "We're very upbeat about it. The euro will cut down on the admin, as we'll have to buy in only one currency. Our main accounting systems were amended to allow for the euro months ago, and we have been ready to quote in euros for some time. Our drivers will be issued with the new money on the first of January. They are used to handling foreign currencies all the time, so they won't really need any training."
A special system of forward deals known as "frontloading" has been set up through Treasury departments to equip businesses for the changeover and supply them with the new currency. In Ireland, for instance, prices were shown in both currencies for most of last year, so drivers are already used to the euro and don't expect to have any problems.
Some operators, however, are worried about hidden inflation. "It's all a bit of a gamble. We'll have to tread carefully," says one Irish operator. "There could be a fair bit of haggling."
If you have just signed a contract to deliver to the euro area, you might need a crash course in the currency and its implications. A government website allows access to information about IT systems, pricing, invoicing, banking, handling cash, and euro-awareness training.
Accounting systems, however, might not need a major overhaul. You might simpl need to set up a new ledger in euros an change currency markers to euros on th system you use to print invoices.
One thing you will need to think about your price list. Will you have one list rates throughout the euro area, or differe lists for different euro countries? If you one list of rates you'll need to make it cl whether local tax rates apply.
Operators have mixed views about euro. Some are very positive, whereas ers are disillusioned. Stuart Butterwort
TDS Morgan Freight, a firm which tried its luck with the virtual euro, says: "It was very apparent after a short time that it would cost us money, even though you can pay your sea freights and fuel from your euro account. Were not dinosaurs—we were, in fact, the first company in North Wales to have a euro ccount when it first became possible back in 999. We're aware that it's there, but we're ot happy to do business in it. We still have a uro account, as we know the time will come then we will have to do deals in it, but we'd ther deal in sterling."
Some coach operators, too, are well prered for the euro. For instance, Redwing aches (www.redwing-coaches.co.uk) is ertising a special service on its website for tomers who wish to pay in euros.
or hints on how to prepare your business the euro, visit the South East Euro Advisory -ice site (see left). If you have Windows 95 ter, plus 2Mb of free disk space, you can nload a Euro Tool Kit and a Euro Planner.
Recent versions of the Windows family, such as Windows 2000, Windows ME and Windows 98, provide you with the option of selecting the euro symbol directly, although you might have problems with the typeface if it has not been upgraded recently.
If you need more information about how to bring your computer software into line with the euro, visit www.microsoft.com.
Even though Britain has not joined "euroland", ignoring the euro might prove impossible.
The South East Euro Awareness Forum warns businesses that international companies could decide to use the euro as their preferred European currency and to favour service providers who are able to invoice them in euros. Companies acting early might gain an advantage for their businesses: those acting late might find they have lost competitive opportunities and increased their costs.