Brussels, 21/09/2001 (Agence Europe) - The observation to emerge from the latest "Flash Eurobarometer" survey conducted this summer on SMEs and the euro, is of concern, the European Commission acknowledges: on average 17% of European companies (but 26% in Germany, 24% in Portugal and 20% in France), essentially smaller sized, are still not aware that they have to prepare for the euro before the fatal date of 1 January 2002, and one SME in five (23%), especially in Germany, Italy and France, admit that it will not be possible to conduct all operations in the euro when the single currency is introduced. In addition, the general level of European SME preparations (implementation of a detailed action plan, date for invoicing in the euro) is progressing at a slow speed. The only encouraging sign: medium-sized companies distinguish themselves, as there were almost twice as many prepared for the changeover as there were in the spring.
The results of this survey reveal that 56% of SMEs will issue their invoices in euro on 1 January. Luxembourg and Dutch companies seem the most up to date in this field as 36% and 27% respectively declared that they already invoiced in the euro. The number of SMEs with an action plan for the changeover to the euro remains stable (28% have a detailed plan, and 33% broad outlines). The survey of concrete measures taken by SMEs to prepare themselves leads to the observation that they are more numerous than before to inform their staff or to set their prices in euro. However, 66% of SMEs declare that they have already adapted their computer systems, against 71% at the last poll in March. At the same time, the confidence level of company bosses remains high: 59% have confidence in their ability to succeed in the changeover to the euro, and 33% are "rather confident" (or an overall confidence level of 92%). Those who express doubts on this only represent 8% of the SMEs. questioned.
"It is important that al European companies should act before it is too late. 31 December 2001 is an ultimate date for the changeover to the euro and it is now that companies must take the necessary measures for that changeover", declared Commissioner Erkki Liikanan. "The slow progress observed is hardly encouraging, given the efforts made by Member States and professional associations to attract SME attention", commented Commissioner Pedro Solbes, adding: "but let's set out sights on what can be done over the next 103 days! Many measures taken this summer, like for example, the changeover into euro of bank accounts, will certainly help SMEs become aware that the euro is really there. But Member States have still to make a last-ditch effort to encourage small companies, and especially small retailers, prepare for the deadline of 1 January 2002 and thus avoid any disturbance to their business."
According to UNICE, "the worst scenarios should not occur"
According to a UNICE survey, most companies will have taken the necessary steps by meeting their legal obligations stemming from the changeover to the euro. Nevertheless, "one has to expect a certain break in company activities, especially in the retail trade, in almost all countries. Companies will be faced with series of difficulties, like logistic of the dual circulation, problems of treasury, new tills, says UNICE. Furthermore, a little over half the 14 federations of 14 Member States questioned consider the burden of the changeover to by high, notably regarding the changes to be made to the computer systems, the treatment, storage and transfer of funds, the adaptation of tills, the dual price labelling for all goods. In those countries where government support is regarded appropriate, German,, Dutch and Belgian companies call for financial assistance (or tax deductions), whereas those of Finland or Ireland recommend that their authorities organise courses and seminars. In Spain, SMEs are calling for the stages of th changeover to be simplified by the ECB. Information campaigns are regarded as good in Sweden, Austria, the Netherlands, Ireland and Luxembourg, thanks to actions such as meetings between all groups of civil society. In Germany, Belgium and Italy, consumers are satisfied with the information they receive over the radio and television. In Germany, Belgium and Greece, advertising campaigns are regarded to be mediocre. They are said to have been delayed (through a lack of co-ordination in Belgium), leading, for example, banks to serve as source of primary information in Germany and company federations to play a role in Greece. The introduction of the euro should not have a major impact on company competitiveness in most countries. In the United Kingdom, companies wishing to retain their customers will have to accept payments in euro, with the corresponding monetary risk, "which will limit their competitiveness in relation to the members of the euro zone", writes UNICE.