What does the euro mean for us?

To the average person living in south Essex it is difficult to know what to make of the new single currency, born at the start of the new year.

Some people see it as the dawn of chaos, some are heralding it as an economic miracle, most seem to be totally indifferent to the whole thing.

In a nutshell, the euro is a single currency which is being be phased in across Europe in place of existing currencies like the French franc and German Deutschmark.

Euro notes and coins will not come into circulation until the beginning of 2002 but the new European Central Bank in Frankfurt, headed by Dutchman Wim Duisenberg, has now begun managing monetary policy in the 11 European Union countries which have agreed to enter in the first wave.

The only EU countries not joining for now are Britain, Denmark and Sweden.

The whole issue will snowball over the next few months as we study the effect it is having on the continent and move closer to a referendum, in which the public will be asked to decide whether or not we want to join the system in its second phase.

But what will be the immediate effect on people living in Essex? Adrian Moss, international services assistant at Barclays bank in Southend High Street, believes that the average person on the street will not notice much difference.

He said: "A few companies were thinking of paying their staff in euros but on a day-to-day basis it won't affect most people.

"People who shop in London may find that in large shops goods are priced up in pounds for us and euros for foreign tourists, and when they go abroad they'll be able to buy travellers cheques in euros.

A Treasury spokesman agreed that most people would be unaffected at the moment but said businesses should be aware of what is going on.

She said: "It will affect businesses which have dealings abroad, which is why we've set up a euro preparations unit to advise companies on what is going on."

One such company is Andrew Summers International Book Services, based in Homestead Gardens, Hadleigh.

They export books to the continent and have just sent out a special mailing list to all their European customers with details of euro prices.

Andrew Summers, company boss, said: "The arrival of the euro has been implemented smoothly throughout the company with minimal cost."

He added: "Small companies should have nothing to fear from a single currency, provided they do some planning ahead.

"Of course there will be difficulties, for example getting information from the banks has been slow.

"However, it is to their credit that British banks have provided customers with more information more quickly than their continental counterparts."

Although this government is more favourable towards joining the single currency than the previous Tory regime, Tony Blair has stalled over a definite decision until more of the public can be swayed in its favour.

To do this he has to first win the support of both his ministers and a largely euro-sceptic media and then hope for encouraging signs from the countries which have dived in on the first wave.

For those who care about the single currency there are three stances to take: for it, against it or wait-and-see.

Those for it, including Richard Howitt, the Labour MEP for south Essex, know the whole project is a massive gamble but believe that if the risk pays off then Europe will enter a new era of prosperity and will rival America as the world's greatest economic superpower.

At the other end of the scale is Teddy Taylor , MP for Southend East, who is following the anti-euro line being adopted by William Hague and other right-wing Tories.

They believe Britain should rule out joining definitely for this parliament and possibly the next, and will be sticking vehemently by their guns so long as they can silence pro-Europe Tories like Ken Clarke and Michael Heseltine.

Sir Teddy said: "For goodness sakes stay clear of it. Everyone should be concerned because it's going to be a very bleak time for Europe with economic problems and social unrest.

"It's been tried before in other parts of the world and we've seen that it can't work unless you have one treasury and nationhood - there's no nationhood in Europe."

He added: "All those people who are optimistic about it I ask to remember the ERM disaster - the problems when they come will be frightening."

Most politicians are sitting on the fence over the issue and say they are going to wait and see.

Angela Smith , MP for Basildon and East Thurrock, said: "I think it would've been wrong to have gone in without the support of the British public.

"By sitting back for the time being we've got breathing space to see the impact on the British economy and how it will affect us. I'm reserving judgement for now but certainly people should be thinking about it and finding out about it."

Whatever happens on the continent, the coming months will be an interesting time in Europe and even if you have no interest in the topic at all, it is worth remembering that Britain is unlikely to stay out forever and sooner-or-later the pound will be little more than an historical artefact.

You can call the Treasury's euro unit on 08456 010199 or visit their website on www.euro.govt.uk.

The euro - pros and cons

PROS

Those in favour of the euro believe it will become a super currency and Europe will become an economic superstate more powerful even than the United States

British home-buyers will be able to arrange mortgages in euros, with interest rates much lower than sterling mortgages

Travellers will not need to change up their money when they go abroad and they will find it easier to compare prices from one country to the next

It will help bring European countries closer together, with cultural and social benefits

CONS

Sceptics say a single currency should not be considered until there is political union across Europe

There will be strong calls for tax harmonisation - which means the Central Bank in Germany will be able to tell us what rate of income tax we have to pay

There are no guarantees that it will help unemployment and it may even make the situation worse

All countries will have a single interest rate, even though they are not really convergent

Tense time - London city dealers have worked through the weekend to get their systems ready to trade in euros

(Right) Holiday money - tourists can now get hold of travellers' cheques in euros

Converted for the new archive on 19 November 2001. Some images and formatting may have been lost in the conversion.