To date, in IT systems terms, EMU has been somewhat overshadowed, as the pressing issue of Year 2000 monopolises both headlines and resources as a potential technology time-bomb. Realistically, however, EMU is an even greater and more challenging issue and any company failing to react now faces a severe threat to its ability to trade and compete successfully. EMU is not just about monetary union it is, perhaps more importantly, also about economic union that will lead to the closer co-ordination of national economic policies, presenting a plethora of opportunities.
Most organisations are familiar with the opportunities presented by economic and monetary union.
In addition to the obvious advantage of merging as one huge European market, it offers the creation of a powerful, stable currency that will provide an alternative to the dollar, helping to increase competition and in the long term, streamlining trade within Europe, offering a much more level playing field with US corporate giants. It is these countries who will initially experience the most upheaval, as even domestic companies with little or no foreign trade will need to adjust their financial system to ensure effective trading. In addition, even for those countries that have declined to participate, the effects of the euro will be far-reaching. Many large multinational companies such as Siemens and Philips will be switching to operating in euro early in 1999, meaning any company wishing to deal with them must also operate in euro. Also consider the implication for a company of a non-participating country who makes even just one sale to an organisation in a participating country.