Euro threat looms larger than Y2K

Fifty per cent of UK businesses think euro compliance could be even more complicated than beating the millennium bug, according to the latest report from Benchmark Research.

The report, conducted by Benchmark on behalf of Bull Information Systems, found concern is greatest in the financial, utilities and telecoms industries - a stark contrast to manufacturing, where only 8 per cent think the threat is greater than Y2K.

Despite having no deadline for UK entry into EMU, most companies think there will be strong demand to deal in euros by 2003. But according to Bull, only 14 per cent of businesses are currently ready to handle such demand.

Lynda Chambers, marketing manager for systems integration at Bull, said the reluctance to start conversion projects is dangerous. "The euro shouldn't be seen as a Y2K issue, because what it does is present an opportunity - or a threat - depending on how a company recognises its importance in its future business strategy."

According to the survey, companies are most concerned about the sales function of the business, with specific IT functions like wages or accounting further down the priority list.

Dennis Keeling, chief executive of the Business & Accounting Software Development Association, said businesses are facing a major problem. "The organisations that have started conversion projects have found that the work is significantly more difficult than Y2K - up to five times more difficult.

"In Y2K you are looking for a specific date field, but for euro conversions you are looking for every occurrence of a monetary field. And they can be quite hard to find," Keeling warned.

The report found that 74 per cent of UK companies have suppliers, and 69 per cent have customers, in countries that are on target for full Euro-membership by 2002.

Benchmark warns: "UK industry cannot therefore be viewed in isolation from Europe."

The survey also found that despite the apparent lack of planning most firms are confident they will be ready in time.

Information on how to tackle the euro can be found at http://www.basda.org .