The pressure to use euros is likely to spread throughout the supply chain. Case studies Pal International, a company with 155 employees, will start book-keeping in the euro in January 1999. Chairman Richard Brucciani says his company is getting ready to produce euro price lists and cope with customer pressure to harmonise prices across the euro zone. Made in the UK, paid for in euros Goodyear GB, leading manufacturer and distributor of tyres, is already gearing up. Jim McKinnon, the company's treasurer, reports that several large car companies have indicated that from next year they would like to pay in euro.
Small companies have to get ready too.
Managing director Alison Knight says that her Italian competitors will have the edge if she turns up at the Frankfurt trade fair and is not prepared for the euro. Swapping sterling for euro Grant Phillips predicts that many British companies may end up trading with each other in euros - irrespective of whether the UK joins the European Monetary Union or not. It is a domino effect, which will happen all over Britain. Companies who thought the introduction of the euro would be at least five years away will suddenly find themselves having to deal with the new currency.