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London businesses told to get ready for euro

LONDON: British industry groups on Wednesday launched an initiative backed by the government to urge London's businesses to prepare for a possible move to the European single currency.

The forum, supported by business organisations and sponsored by the Treasury, said it was neutral as to whether Britain should join the euro but its brief was to help firms prepare for it.

"Far too many businesses are not ready for the euro," said Hilary Thompson, chairwoman of the London Regional Euro Forum.

"Companies are already being asked to quote their prices in euros, trade in euros and know they have to compete with companies in the euro area."

The London Regional Euro Forum said 28 percent of businesses in London sell to other European Union countries.

It said its first priority was to target small and medium-sized businesses, only 17 percent of which had made preparations for the euro when polled last October.

Nearly three months after the birth of the single currency, business groups remain split on the issue of Britain swapping sterling for euros.

Surveys show that the businesses themselves are largely in favour of joining, although they want a firm commitment and a date from the government before devoting cash to preparations.

The Labour government has committed itself to joining the euro in principle, when the conditions are right, but has ruled it out in the current parliament which can run until early 2002.

It launched a National Changeover Plan in February designed to get government departments and businesses ready for possible euro entry. -Reuters