$85bn cost of euro preparation

EUROPE'S LARGEST companies could spend as much as $85bn (pounds 51bn) on preparations for European Monetary Union, according to a survey carried out by KPMG, the consultants. KPMG, which estimates the average cost per company of transition to the euro at $51m, says most European firms now have an EMU strategy in place. However, four in 10 of companies surveyed have yet to estimate the costs of changing over to the euro.

Companies in different countries and sectors are likely to adapt at differing paces, and this could potentially cause severe short-term disruptions, KPMG warns.