Euro preparations go smoothly despite Underground strike

International financial institutions in London are confident that the switch to the euro on 1 January will be handled smoothly, even though industrial action at that time by London Underground (LU) workers now looks imminent.

Thousands of on-site IT staff will be needed in the City as the new year begins, in case there are problems with computer systems rejecting the new currency.

A spokesman for Barclays said the bank is keeping a "watchful eye" on developments. He said no major problems were envisaged as most personnel will only have a short distance to travel, but hiring buses to pick up workers has not been ruled out. He added that a number of staff concentrating on euro conversion will be based at the company's data centre in Poole.

Leading investment banks and fund managers are known to have been preparing for the changeover for some time. "We've been working on getting things right for a year and a half," a Schroders spokesman said.

Roger Brown, a director at the British Banking Authority (BBA), said talk about disruption has been exaggerated. "The strike won't be helpful, but alternatives like company buses and hotels will be found," he told Silicon.com. "Generally, we've been pretty encouraged with the amount of preparation and testing that's gone into this."

Even though the UK is not joining the single currency in the first wave, the euro's birth will have a big impact on the City. It will mean the re-denomination of securities valued in legacy currencies and the conversion of cash balances.

One bank representative said: "This [euro conversion] is something that has simply got to go ahead. Although there's always the chance that something will go wrong, we don't need everyone here to make sure there are no problems." Some observers have said problems with the euro changeover will even act as a dress rehearsal for more widespread upheaval in IT departments a year from now.

A spokesman for Rail and Maritime Transport, the union behind the latest round of strikes, said some tube services would still be running during the two 24-hour strike periods, due to variations in shifts and union membership. The RMT is protesting about decreasing job security and unsatisfactory pay and conditions as LU assets get leased to the private sector where contractors look to cut costs.