But in future, a consumer will be able to compare euro prices across Europe - and make his purchases accordingly. It all means that the consequences of the euro have to be carefully worked out and prepared for - latecomers could miss the boat. There are a number of other things that underpin Philips determination to be among the early euro movers 'n' shakers. Short term pain for long term gain is one of them - a belief that the long term benefits of European Monetary Union are greater than the short term disadvantages. This is all to do with a concern about Europe s long-term competitiveness without the euro.
Unemployment is too high compared with the U.S. and South East Asia.
Philips firmly believes that the tight monetary policy required by the euro may create a better investment climate in Europe, resulting in growth and jobs. A postponed euro would slow the potential rate of success. Macro-economics apart, Philips is a complex organization with over 1,000 reporting units and several thousand legal entities to deal with, which increases the challenge of responding quickly to the major market changes that are likely to come. Far better to anticipate such changes and be ready to deal with suppliers and customers who want to use the euro from day one. Also, Philips' very size means that there is a great deal to adjust in the field of information technology, if the company is to be ready on time.