FDs are unprepared for monetary union

Only 10% of finance directors say their company is currently involved in detailed preparation for the introduction of the euro on 1 January 1999. Almost 40% say that they are getting ready, ‘but not in any real detail’, and 45% say they have yet to consider thinking about monetary union.

These disturbing results come from an exclusive poll of 200 finance directors for The Big Question, a service commissioned by Accountancy Age and Reed Accountancy Personnel.

One anonymous respondent from a pan-European drinks firm said that his ‘treasury division will handle all such preparations’, while Air UK treasurer Philip Wallbank said ‘the problems are more political than commercial’.

But John Rolph, FD at McNicholas Engineering in London, said that his company is ‘looking at the effects on contract pricing, to a certain extent’.

He is very much in the minority. One FD said that all preparations were taking place at his European head office – the UK subsidiary was not involved.

‘We consider the US dollar to be our international currency,’ another said.

But many are waiting for others to act first: ‘When everyone changes, we’ll change,’ said one. ‘There is still a lot of debate and legislation to pass before any firm action would be taken by the company,’ said another.

One simply asked: ‘When is it due to be introduced?’

See analysis, page 4 and leader, page 11.