As the countdown to European Monetary Union (EMU) continues the business community here is fast developing a keen sense of euro vision.

From small firms to banks to thriving multi-nationals, business is preparing for the tearing down of traditional monetary borders. When EMU kicks off on January 1st, 1999, it will leave virtually no business operation untouched. Dublin based company Blarney Stone Enterprises manufacture figurines for export to 12 countries. Last year they became the first Irish company to win the best sports collectible in America beating Disney and other heavy-weight competitors. There are 12,000 registered collectors of their product worldwide. The planning practicalities of adapting to the euro are immense for any business. For a small firm like Blarney Stone Enterprises even the most basic adjustments can be a challenge.

From January 1999 their accounting systems must be adapted to accept payments in both euros and the common currency. This will involve updating or replacing current software packages.

"The time element of adjusting everything to accommodate change is often very severe on other work demands," says managing director Mr Declan Fearon.

Complications are also being encountered in adapting computers and printers to read and print the euro sign. The systems to allow this are in many cases still being designed. The concern is that as time passes those who design such systems will be more inclined to service the needs of their larger clients while smaller firms get left behind.

In addition, the introduction of the euro will mean price lists and catalogues will all have to be replaced. The snappy sounding £24.99 for example will translate into the more cumbersome €31.23.

"Perhaps one of the most extraordinary problems is the choice of the official switch over date. All businesses would normally be closed on January 1st, 2002 and consequently it will be a very busy New Year's Day," he says. In order to survive, small firms will have to plan extensive training for the staff and management. "There is no doubt that those who sit on the fence with this task will threaten the survival of their business ultimately," he says.

Despite the myriad challenges, Mr Fearon acknowledges that there will be certain significant benefits from EMU. It is a point stressed by Mr Paul Regan international treasurer with Jefferson Smurfit Group. "The key point to remember about EMU is that it is essentially pro-business," he says. "It aims to remove a key impediment to doing business efficiently in Europe, namely the requirement to trade in a diverse range of constantly shifting currencies".

In the post EMU environment trading across EU borders will be made simpler with currency commissions being eliminated. Currency volatility will no longer have to be a part of the long term planning strategy. Increased competition and a more transparent banking system will serve to reduce bank charges.

Companies, like Jefferson Smurfit, who have bases across Europe will obviously benefit from the above developments but they will face challenges too. "The price transparency that will result from the fixing of exchange rates will facilitate direct comparison of products across EU countries and we will have to ensure that we are fully competitive in every country in which we operate," says Mr Regan. "Any inefficiencies will be highlighted as never before".

The Jefferson Smurfit Group has established an EU steering committee in order to take full advantage of the opportunities presented by a single European currency.

Companies are also preparing for the administrative and practical implications of EMU by seeking advice from financial institutions.

But it is consumers who will rely most strongly on banks to keep them informed about how the EMU is to impact on their personal finances.

In this context, one of the most common queries concerns how our bank accounts will change when EMU comes on-stream. The AIB's guide for personal customers outlines how a whole range of "euro features" will be added to bank statements.

From January 1st, 1999, statements will include balances in Irish pounds and euros, the conversion rate between the currencies and the euro value for each transaction. In January 2002, all bank accounts will automatically become euro bank accounts.

While no specific action is required in relation to bank accounts, the AIB is advising its' customers to give serious consideration to interest rate options on both borrowings and savings.

Someone borrowing over a short period of time, for example, is advised to stay with a variable rate as these are expected to fall with EMU. For long-term borrowing such as mortgages, the AIB advises home owners to avail of a fixed interest rate, which are currently at historically low levels.