Although Northern Ireland is not part of the euro zone, commercial reality means the euro and EMU are already part of normal business for the only region of the UK which shares a land border with the new monetary union.
Northern Ireland was recently labelled "the most isolated area of the EU's least enthusiastic member". But there is increasing evidence that key small and medium enterprise decision-makers in the North are proactively adapting their planning and approach to EMU and the expanded Single Market.
There is a determination within the region's business community to ensure that its unique link to EMU via the Republic is developed in the most positive manner.
Northern Ireland's small business development organisation - Local Enterprise Development Unit or LEDU - recently introduced a region-wide mobilisation programme for EMU preparation with the support of PA Consulting Group.
Sponsored in part by the European Commission, the programme is delivered directly to the target enterprises through LEDU's regional offices working with the LEDU European Information Centre.
A series of interactive workshops aims to focus attention on the strategic challenges flowing from new market structures and the new currency.
Emphasis is placed on opportunities offered by early operational and commercial preparation, as well as longer-term action planning for EMU and the Single Market.
LEDU believes the timing of the UK's entry to EMU is largely academic. The reality is that the euro is already a fact of life for every business in Northern Ireland with a customer or supplier in the euro zone.
"For that reason Northern Ireland business needs to be more aware of the issues and needs to prepare in a practical way. They need to think strategically for the longer term," says Ms Eleanor Butterwick, of LEDU European Information Centre.
In many cases, the companies attending the LEDU seminars are enterprises already transacting in euros, examining ways of expanding business and raising finance within the euro zone.
A spokesperson for a building supplies company with customers in Europe said it recognised the opportunity and ease with which it could move product around Europe through dealing and quoting in one currency. Streamlining invoices in the new currency was advanced as a marketing tool to enhance customer relationships. This introduces the need to work closely with, and in many cases educate, key customers to ensure a smooth transition to the euro.
Another theme reflected at the workshops was that long-term strategic planning for EMU was crucial to survival, not only in the euro zone, but also in Northern Ireland in an increasingly competitive and more global business environment.
One response to this challenge for Northern business has been to develop alliances with international companies, while retaining their own brands. Another issue consistently highlighted in positioning for EMU was cost and relationship management. Some participants felt the euro would help to keep costs down and would also improve their competitiveness with the Republic, particularly given sterling's strength.
But this strength poses problems for some Northern exporters. They find it is making them too expensive both in the Republic and elsewhere in Europe. To cope with this pressure, some small and medium enterprises invoice customers and pay suppliers in euros. By maximising euro transactions, they keep currency exchange costs down. One company noted that a supplier which could not confirm ability to deal in euros was British Telecom.
Another way in which Northern Ireland manufacturers try to overcome the sterling handicap is to differentiate between quality and innovation. This approach was highlighted by a major fresh food supplier focusing on extending the shelf-life of its products.
Another food supplier to supermarket chains in Ireland and the UK stressed that customer relationships were the key to its success. PostEMU merger activity therefore was a concern, as vital relationships and terms of business could be altered overnight.
On the other hand, alliances and partnerships in Europe could give Northern firms more flexibility in getting product to new markets, while logistics channels would be crucial to access the enlarged market.
There has been a cautious note, too, about the difficulties facing manufacturers seeking to expand into European markets, notwithstanding the advantage of euro trading. The cost of developing new markets and operating in a new environment were cited as challenges that would not go away in the common currency zone. A software company felt alliances with local firms would be essential to any such export strategy to deal with issues such as after-sales service.
A common view among Northern companies was that the euro's challenges were good because they required companies to review their overall performance and business strategies, and also provided the opportunity to expand.
The Northern Ireland euro workshops programme will run until June, and will form part of a continuing initiative to assist Northern Ireland companies in their euro changeover and post-EMU development.
Anne Carthy and Deirdre McDonnell of PA Consulting's EMU Focus team are conducting a series of workshops for LEDU in Northern Ireland
