IT directors fear euro red tape

Most of the UK's IT directors have set up a strategy for the euro, but they fear politicians in Brussels will wreck it.

A survey commissioned by financial software vendor, Geac, found that overwhelming support for the euro is tarnished only by a fear for its future. Steve Shine, MD general manager of Geac computer systems, said that over the past six months UK businesses have become committed to trading in the single European currency.

But while 74 per cent of IT and finance directors said the euro is healthy for UK business, 81 per cent believe it is at risk from overly bureaucratic institutions and short-term political pressures.

Shine said recent events in Brussels will only make things worse. He told Silicon.com: "This downsizing of the European Commission could have huge negative implications for the euro."

But Stephen Dorrell, MP and ex-Cabinet minister, sought to reassure IT directors. "I don't believe the fiasco at the Commission will impact directly on the development of systems for the euro," he said. "The bank which controls the single currency is separate from the Commission. In fact, there is now an opportunity arising from this situation to reinvigorate the work of the Commission and therefore the development of the euro."

Mark Earls, senior finance systems manager at Marks & Spencer, is cautiously optimistic. "Anyone with good organisation skills will realise that euro conversion is a long-term project. To stop working on this because of the Commission's crisis would be extremely poor planning - red tape is of little consequence," he said.

The survey found that 60 per cent of the 47 blue-chip companies surveyed are already trading in the euro. Just 23 per cent believe the IT sector is the driving force behind the successful realisation of a united currency.

The report will now be forwarded to the UK government for the attention of Trade Secretary, Stephen Byers.