The euro will stabilise trade patterns and thus reduce marketing costs. Also, there will be strong economic pressure on neighbouring countries such as Norway, Switzerland, and East and Central European countries to closely link the value of their currency to that of the euro, thereby enlarging the zone of monetary stability. A European supplier of another European company currently invoices in US dollars due to the fact that the raw material in question is initially quoted in US dollars. With the use of the euro as the reference currency in all supply and sale contracts, the company will avoid exposure to fluctuations of the US dollar and will be able to focus on improving its competitiveness and on more effectively managing its costs. Payment conditions Payment conditions vary considerably from one country to the others.
Terms of payment are likely to converge as a result of the broadening of the supplier base.
Convergence will take place over time, however, and will not happen immediately following the introduction of the euro. In the meantime, companies could consider giving preference to suppliers who offer the most favourable conditions of payment. The current payment situation in Europe inhibits the development of intra-European trade and the smooth working of the internal market. Small and medium-sized enterprises are particularly affected by the long payment periods since they are more dependent on trade credit than larger firms. By facilitating trade within the European Union, the euro is likely to lead to the development of merchandise transportation and corresponding logistics.