With all the preparations for the launch of the euro on January 1st, 1999 now in place, MEPs this month launched an appeal to the UK and the other non-participating states - Sweden, Denmark and Greece - to sign up to the single currency as soon as possible.
In backing a resolution tabled by John Stevens (UK, EPP), Parliament sees EMU membership for the countries as the only way to ensure currency stability. Mr Stevens believes market forces will increase pressure in the UK for early accession to EMU and wants to ensure that there are no barriers to the use of the euro as a "parallel" currency.
He is therefore calling on the Bank of England to issue a statement before the end of the year on how it sees the use of the euro as a parallel currency developing over the next few years. In addition, the European Central Bank should set up a special committee to monitor financial activities in the four states with a view to guarding against any adverse effects as present uncertainty over whether or when the UK will join is only increasing the risk of volatility of sterling.
Numerous multi-national companies operating in the UK have already announced their intention to invoice suppliers in euros and indeed to pay executives in the new currency. It is also expected that wage agreements for key industries such as motor manufacturing will be negotiated in euros.
Indeed the need to compare prices easily across the EU will, Mr Stevens believes, prompt more and more purchase managers to request domestic suppliers to quote in euros. Furthermore, the impact on the City will be considerable as more and more commodity traders and investment houses switch contract prices from the dollar to the euro.
Tourists from Europe coming to Britain are also going to want to pay for goods in the new currency and British farms will be receiving payments from the CAP denominated in euros.
Meanwhile MEPs voted to increase funding for the €100 million information campaign designed to publicise the use of the new currency during the changeover period up until the year 2001. Coins and notes will become legal tender in the participating countries on January 1st, 2002.
Brian Crowley (Munster, UFE) said that there is great fear, and a danger, that not enough information work has been undertaken and raised the issue of a code of best practice which should be copied by the member states or by small and medium sized enterprises given their particular importance in the field of employment generation.
MEPs want the information campaign extended to the year 2002 with a concerted effort made towards ensuring that special sections of society such as the elderly, the blind and other handicapped people are fully aware of the change.
The emphasis in the interest of "subsidiarity", is for information to be available as close as possible to the citizen in the different member states. Direct use therefore, will be made of other intermediaries such as professional associations, business federations and Euro-Info Centres and use is to be made of wide ranging different formats such as television campaigns, brochures, the Internet and CD-ROMS.