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Are Europeans ready for the Euro?

March 10, 2002

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LONDON - Most of Europe will be trading in a common currency starting January 1, and a survey of retailers in Europe's leading countries highlights a common problem: a lack of consumer preparation.

The Euro will become the standard currency in 12 European countries starting January 1, 2002. The survey, commissioned by NCR Corp. and undertaken by Gartner Consulting, reveals that 71 percent of retailers in Germany, France, Italy and Spain consider themselves prepared for the Euro's introduction.

However, the survey revealed that most retailers have focused on preparing staff and not on preparing consumers, and just 28 percent of retailers are confident consumers are ready for the change. Potential consumer problems, including cash shortages, counterfeit notes, and long checkout lines, have not been properly addressed, retailers admitted in the survey.

Because of that, opinion is mixed on spending patterns after the conversion - a majority of French and Italian retailers expect a decline in consumer spending during the conversion period, while 58 percent of Spanish retailers expect an increase and nearly two-thirds of German retailers expect no change.

In analyzing the survey results, Alberto Camuri, NCR vice president of retail solutions in Europe, said kiosks can be utilized as part of the Euro education process.

Government assistance will be needed to ease the transition, according to the survey. About 80 percent of the retailers surveyed said they would like some form of tax relief, while 77 percent wanted their governments to spend more on consumer education.