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OVINVII[ 41614' NE YMOUNTAI As 10,000 trucks begin to distribute the euro
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to 12 EU countries in time for the January changeover, thieves have already struck. Guy Sheppard assesses the challenge facing the cash carriers... Last month a gang armed with assault rifles and shotguns smashed their way into an Italian postal repositry with a wrecking ball. Within two minutes they had loaded more than £3rn worth of euro coins and escaped, scattering spikes on the road to disab#e pursuing police cars. The attack sent shockwaves throughout the EU as security trucks begin to deliver £10bn worth of euro coins and £400bn worth of notes to banks in 12 EU countries.
Until 1 January, when the single currency becomes legal tender in 12 EU countries, there will be an unprece. dented number of journeys by cash -in transit WIT) vans and lorries.
As they trundle between mints, printworks, retailers and banks, other gangs keen to follow the Italian lead will be probing for any weakness in the security measures which have been planned for years. And the threat will not end on New Year's Day, because the old currencies, which will retain their value, still need to be removed for disposal.
The European Central Bank (ECB), which is managing the introduction of the euro, says "extraordinary security measures" have been drawn up to prevent robbery and fraud. These include national governments and police forces working closely together during the changeover period and adopting common strategies to reduce the risk of robbery. Even in the UK, which is not joining the single currency, an increased risk of hold-ups is acknowledged because auras will be needed by tourists and anybody else travelling to and from the Continent.
John Abbott, director general of the UK's National Criminal Intelligence Service, warns: "Cash-rich hotspots where old and new currency is stored and in transit, will be attractive targets for robbers." The Italians proved how real the risk will continue to be. eau, it is national central banks, such as Banque de France and Deutsche Bundesbank, which will put the new cash into circulation. The Bundesbank points out that removing the old currencies will pose more of a logistical problem than delivering the new. It is putting 71,500 tonnes of euro coins and 2.5 billion euro bank notes into circulation in Germany, but estimates that some 98,500 tonnes of 0-Mark coins and 2.6 billion 0-Mark notes will be returned.
Expansion
In CIT companies, with the much bigger job of delivering to commercial banks and retailers, capacity is being expanded significantly. Group4 Securitas, the Belgian arm of Group4 Falck, gives an insight into how the industry is meeting the challenge.
Marketing manager Stephane Bocquet says the firm will be carrying most of the two billion euro coins and 530 million euro banknotes being delivered in Belgium: "It has increased our workload massively because we still have our dayto-day business of delivering Belgian and other currencies as well as ensuring front-loading of the euro," Group4 Securitas has increased the size of its CIT fleet by more than 50 vehicles to 250. The workforce has been increased by 180 to nearly 1,000, with most of the new recruits made up of drivers. "They have to undergo compulsory legal training and meet a lot of criteria such as not having a criminal record," says Bocquet.
Once the currency changeover is complete the boom will end. Many of the extra CIT drivers are on short-term contracts.
Group4 Securitas' workforce and fleet have been expanded by around 25%, but Bocquet says the volume of work caused by the euro has increased by a far greater amount He stresses there has been no relaxation in standards—the pace has simply stepped up.
"People will have to work more and take longer holidays when the whole operation is over, but it's very important that they are working at their best because of the risks. We have to have people with a clear state of mind to make these missions, which are more difficult that in usual circumstances."
Coins are less of a security problem than banknotes because their value is lower, but coins create more logistical problems because of their extreme weight. "One box of coin is impossible to be lifted by one man so you need more time for this work," Bocquet explains.
The vehicles used for carrying bank notes come in two types: one with a traditional vault inside and another with an "intelligent" box. This was developed three years ago following a surge in attacks on CIT vehicles across Belgium. Bocquet reports: "They were averaging one a week, which in a country of 10 million inhabitants is a lot of people getting shot and killed," The box can destroy the value of a bundle of banknotes by burning a hole through the middle if there is any threat of a hold-up.
After the euro launch the long-term prospects for CIT do not look so healthy. Credit and debit cards are replacing cash and bank branches are closing. Bocquet says: "We will have fewer places to deliver to in the future." And fewer risks of encountering an armed gang,
EURO BY NUMBERS
The 50bn euro coins being delivered are worth £10bn and weigh 240,000 tonnes—enough to 111110,000 CIT trucks.
The 14.25bn euro banknotes are worth more than £400bn. If placed end-to-end they could reach the moon and back five times.
Banknotes and coins are being produced at 15 printing works and 15 mints around Europe.
Delivering all the old national banknotes for shredding and coins for melting down is an even bigger job for the CIT sector but it is being spread over a longer period.
The French-based Confederation of European Security Services says that Brinks, Group4 Feick, Euroguard, Securitas and Ardial account for 90% of the CIT market in the euro zone.