The following essay by Cormac Finn, a first-year business studies student at Dublin City University, won first prize in the undergraduate section of the Young Business Writer awards.

Every summer when I was aged between four and eight, I dreaded the three or four weeks that I would spend with my grandmother. Not because I didn't like her, but because of the way she carried on when she made me go shopping with her. Being dragged by the arm from one packed and stuffy department store to another wasn't exactly my idea of fun. Along with the embarrassment of being towed around the shops like a baggage trolley, I had to stand alongside her at the cash desk while she insisted on knowing "how much is that in old money?"

But the ordeal didn't stop there. The local restaurant was the gathering point for my grandmother and her "cronies" where they would discuss their day's purchases and how it never cost that much "back in my day"!

Until recently, I couldn't have imagined myself using the phrase, "how much is that in old money?" in a serious conversation. But with the arrival of the euro over the next 18 months, I can now see myself pestering a cash-desk clerk in the way my grandmother used to. I shiver at the prospect.

The euro will mean us having to adapt to significant changes in our day-to-day dealings. Visions of people walking around with calculators in their pockets are at the forefront of my mind when I think of the initial stages of introduction.

The question often asked is: why is a single currency needed? One answer is that it will make life better and easier for participating countries in the long run. The long run indeed. Just how long will it take people all over Europe to adjust?

Considering that from January 1st, 1999, €1 became the fixed and irrevocable equivalent of £0.787564, many people will find it difficult to multiply and divide correctly six decimal places in order to establish if they are buying a cheaper loaf of bread at their local supermarket.

Euro notes and coins will be introduced on January 1st, 2002 and by February 28th at the latest, old notes and coins will be withdrawn from circulation. This is a short time to get properly acquainted with a whole new currency, especially for the elderly and those with learning disabilities.

To help in the transition, every participating government is required to run extensive information campaigns to educate people on the changeover process. These campaigns will go a long way to easing the impact of the change but only time will tell their full effectiveness.

So, what can we expect to gain from converting to the euro? The first obvious point is the convenience of having a common currency between so many nations. At present there are 12 European countries involved in the Economic and Monetary Union (EMU), including Greece, which joined last January. The non-EMU countries that have decided to "sit on the fence" and watch the system evolve are Sweden, Britain and Denmark. With the majority of large European countries introducing the euro, ordinary citizens can benefit greatly from the elimination of foreign exchange costs between euro-zone countries.

Greater price transparency when all goods are priced in euros should lead to increased competition in the Single Market and, therefore, lower prices for consumers.

For the businessperson, the single currency provides openings in new markets by simplifying and minimising the cost of international transactions. With the instability of exchange rates gone, investments will be more predictable and trade within the euro zone will be facilitated.

The benefits of the single currency are enormous. No longer will you have to queue at the bureau de change for your French francs or Spanish pesetas and then have to pay exorbitant handling charges along with losing money because of the bad exchange rate.

But what if the master plan fails? Since the launch of the euro in January 1999 it has dropped in value against the other major currencies such as the dollar and the yen. There are heavy costs to be incurred by businesses and banks in order to make the transition to the euro and this may influence feelings towards it. Accounting systems, stock control, price labelling, software and currency distribution systems have to be changed, updated or replaced to bring them into line with the new currency. All this costs money and the danger to the public is that financial institutions and companies may pass on to the consumer the costs of conversion.

One of the main implications of participation in the single currency is the loss of control over domestic monetary policy to the European Central Bank (ECB) in Frankfurt. In essence, the countries involved have placed their economic futures in the hands of the ECB and scepticism remains as to whether or not it is right to put so much responsibility into the control of one institution.

On balance, however, I disagree with the title of this essay, that the single currency is not in Ireland's best interest. I may not be an economist but from what I have learned, the single currency sounds like a very good idea.

Some argue that the Republic should have stayed out in common with Britain, our largest trading partner. But it is time that this State emphasised its independence and self-confidence.

The euro is coming and there is nothing we can do to stop it. When it hits our pockets in early 2002 we will have to make the most of the opportunities it brings and not dwell on the potential downsides to it. The single currency, I believe, is in Ireland's best interest.

Next Friday: the winning essay in the second-level category