UK government moves to dispel euro fears

Following criticism from the British Retail Consortium of the UK government's reluctance to tackle euro awareness amongst retailers, the Treasury has been quick to quell retailers' fears.

Treasury spokesman, Charles Keseru, insisted the government's position was clear. "The date to be concerned about is 1 January 1999. Almost all UK companies will be affected by the euro's launch, no matter what the UK does."

But he conceded that around half of the UK's small and medium-sized enterprises had no trading contact with Europe.

Keseru said that businesses would have up to three years to prepare for EMU, between the national referendum and full implementation. "And I doubt it will take them that long," he said. "It will be quicker to convert to the euro here, because we can learn from countries in the first wave, and even get euro-ready hardware from them."

The government will publish an outline report of its changeover plans early next year.