Chapter 1 Introduction to the Euro

The transition to a single euro currency is a phased implementation. The deadline for complete changeover is set for July 2002 at the latest. For more information on the euro transition, refer to the links in Appendix A, Euro Support Availability.

Figure 1-1 The Euro

1.1 A Phased Implementation to the Euro

The transition from numerous national currencies in Europe to a single European currency, the euro, is profoundly effecting business. All business are involved in the changeover, including changing information systems to use the euro.

The impact of the euro is far-ranging, and not limited solely to European companies. Anyone conducting a financial transaction with a European customer or supplier must change their information systems to support the euro. In today's global economy, many of these companies are not located in Europe.

The following list some systems that are affected by the introduction of the euro:

• Accounting software (general ledger)

• Electronic payment and trading systems

• Invoicing and billing systems

• Payroll systems

• Accounts receivable and accounts payable sub-ledgers

• Inventory systems recording the value of the inventory

• Fixed asset systems monitoring value and depreciation charges of assets

• Work-in-progress (WIP) systems

• Financial planning and budgeting software

  • Costing systems

  • Enterprise resource planning (ERP) systems

  • Treasury management systems

  • Legal databases containing financial contracts

The euro was introduced on January 1, 1999. The full transition to a single euro currency will take place in a phased implementation. The transition timetable is listed below in Table 1-1.

Table 1-1 Euro Transition Timetable

Date	Milestone
By June 30, 1997	Legislation establishes the euro as a new currency
Spring 1998	Economic Monetary Union (EMU) members named Bilateral exchange rates announced
January 1999	Conversion rates irrevocably fixed Euro becomes legal currency European Central Bank (ECB) now responsible for interest rates Financial markets will operate in euro Private sector free to use euro
Until December 31, 2001	National currencies co-exist with euro Businesses free to use euro or national currency Only national currency bank notes/coins used No euro bank notes/coins available Users will include: wholesale financial markets, large multinationals, retail banking, small businesses (cross-border operations, etc.)
January 1 - June 30, 2002	Euro bank notes/coins to be introduced in member countries, will circulate alongside national bank notes/coins
July 2002 (at the latest)	National bank notes/coins will be withdrawn Euro will replace national bank notes/coins

The Solaris operating environment provides input, output, and printing support for the euro, as well as system support for ISVs wanting supported APIs to format monetary strings using the euro symbol.