1. The euro comes into being at midnight on January 1st. Although it will not be available in note or coin form until 2002, it can be used in cashless transactions from the beginning. "No compulsion, no prohibition" is the basic principle governing its use in the transition period. This means that there will be no legal imperative for its use but no legal barrier to it either.

2. According to PricewaterhouseCoopers, the cumulative Gross Domestic Product of the 11 states joining the euro is 85 per cent that of the US. If all European Union members eventually join, the bloc's GDP will outstrip that of the US, representing 111 per cent of the US total.

Meanwhile, the population of the euro zone will be 290 million compared with 266 million in the US and 126 million in Japan.

3. Although no-one will be legally obliged to use the euro before 2002, commercial pressures are likely to dictate the pace of its introduction in the business community.

Companies operating at the wholesale level, such as suppliers to multinational corporations, are widely expected to start dealing in euros from early in 1999 although retailers are unlikely to switch over until 2002.

4. The Republic is the only State joining Economic and Monetary Union (EMU) where the price in euros will appear to be higher than in Irish pounds. The fixed rate between the pound and the euro will not be set until December 31st but a euro is expected to be worth around 80 pence.

As a result, £1 will be worth around #1.25 so prices denominated in euros will be numerically higher. A pint will cost the punter with euros in his pocket an average of #2.56 compared to £2.05 at present.

5. The state of readiness for the euro varies from company to company. The multinational sector is well advanced in its preparations for the single currency with firms such as Siemens and Philips leading the way.

But a Forfas survey carried out earlier this year found that small and medium-sized Irish firms, particularly in sectors such as construction, were lagging behind. Companies in Connacht and Ulster also tend to be less well prepared than those in other regions, particularly Dublin. 6. Prices are not the only things that will be affected by the rounding process that will accompany the introduction of the euro. Many companies may have to reconsider the packaging of goods, increasing or reducing the number of containers in a pack to ensure they are priced at levels which will attract customers - #1.99, for example, is more likely to entice customers to buy than a price of #2.07.

7. The financial services sector is the one area that will bear the full brunt of the euro's introduction from Day One. When the Irish Stock Exchange re-opens for business on January 4th, all shares will be denominated in and will trade in euros. However, those buying shares will still be able to pay in pounds during the transition period.

8. Carrying out conversions between those currencies participating in the euro is not as simple as it may at first seem. Detailed rules have been put in place to cover conversions for accounting purposes.

When converting between currencies and the euro, full six-significant figure conversion rates must be used. Thus, if one euro is worth £0.804062, all six figures must be used when converting. If one euro is worth 1977.058508 lira, the conversion can be done using a rate of 1977.05, the first six figures.

Inverse conversion rates should not be used - you calculate on the basis of what one euro is worth rather than the value of one pound. Thus, calculations should be done on the basis that a euro is worth around 80 pence rather than that the pound is worth #1.25.

9. Publicly-quoted companies must decide at what point to publish their accounts in euros. The process is likely to be uneven with the bigger corporates likely to lead the move toward euro accounting. As a result, shareholders will have to become accustomed to seeing some accounts in euros while others remain in pounds.

10. For those who do business in Britain or Northern Ireland, establishing the pound/sterling rate will also be a little more complicated. Rather than converting directly, the pound must first be translated into euros and then converted into sterling, a three-way process known as triangulation.

11. The novel situation for Irish people of being able to shop with greater transparency in Helsinki or Vienna than in Belfast or London is not expected to last long. Although Britain, along with Sweden, Denmark and Greece, will not join EMU in the first wave, most commentators expect sterling to sign up early in the next century, possibly in 2002.

12. From January 1st, 1999, the Revenue Commissioners will accept payment of any tax, custom duty or excise duty in Irish pounds or euros. Eireann will display prices in both euros and Irish pounds.

With the exception of cash, any banking service required in euros will be available from next year.

Further information on the euro is available from The Euro Changeover Board of Ireland or from Forfas which is running an EMU Business Awareness Campaign.