Winter high-street sales may be delayed to avoid euro chaos

The winter sales in European high streets should be either brought forward or delayed to avoid a chaotic clash with the introduction of the euro, the European Commission has recommended.

Belgium and France already plan to change the date of their annual sales, and the commission said in a report released yesterday that the other 10 countries joining the single currency should follow suit.

"Disassociating the two events would avoid the disadvantage of a peak in business activity coinciding with the most difficult period for cash management," the report said.

Other suggestions on dealing with the changeover ranged from having a member of staff in each supermarket to deal with euro-related queries to making currency converters widely available for traders.

Pedro Solbes, the European Commissioner for Economic and Monetary Affairs, said the aftermath of the terrorist attacks on the US had distracted attention from preparations for the euro, which needed to be stepped up.

He argued that the single currency would provide a stimulus to European economic growth which, he said, was now expected to be between 1 and 2 per cent this year.

The report said that although production of euro banknotes and coins had proceeded on schedule and governments appeared well prepared, many businesses, local governments and consumers were not ready for the transition. It added that almost one in six of those who will use the euro from 1 January did not realise that the currency worked in other participating European countries ­ the main point of the euro.

It said a survey had found widespread fears among the public that the introduction of the euro would be used by traders to cheat them out of change and to increase prices.

The report also highlighted potential logistical problems, saying "possible risks include mainly the storage and transport of cash, possible shortages of bank notes and such problems as communications".