These articles appeared in the Irish Times to-day.  I have also found proof
that the Britsh Guardian is not metric at all. Some Guardian non-metric
articles are in the Irish Times to-day. The IT is always metric in covering
European news, and that can be found in some of the articles below. In
covering the fires in Australia (go to http://www.ireland.com for
this) the Guardian uses Imperial. Covering the euro in The Netherlands and
Belgiuma as well. Go down to "A question of national identity" from the
Guardian Newsservice: "It will be a very good thing on holiday," said Steve
Troeuer, a Belgian builder, withdrawing his first euros in Riemst, a
non-descript village five miles from the Dutch border. - (Guardian Service)
There is also a European edition of the Guardian, specifically targeted at
continental Europeans, and printed in mainland Europe, which is ifp through
and through. A map of France, for instance will have a scale in miles only,
and not very long ago its European weather forecasts were in Fahrenheit. The
covering of the Tour de France in the British and the European editions is
always Imperial only. I have the impression that this otherwise progressive
newspaper is attempting to'educate' us so that we may be weaned off metric
and into ifp in the long run.

Han

Irish Times, Wednesday, 2001 January 2

Conversion of banking system almost complete
By Siobh�n Creaton, Finance Correspondent

The banking system is almost completely converted to euro, with only a few
cash machines in locations such as factories and universities to be put back
into service.
The Irish Bankers' Federation said the industry has largely met its targets
with bank accounts, point-of-sale machines and Internet and telephone
banking systems all converted to the euro. The Central Bank of Ireland was
the only financial institution to open to
the public yesterday. According to the bank, up to 3,000 people visited
yesterday, with more than 1,500 transactions reported as customers exchanged
pounds for euro. Most customers were typically exchanging amounts of �300,
�400 and �500,
according to a spokesman. Many of the people who availed of the Central
Bank's services indicated they did not hold bank accounts.
An IBF spokesman, Mr Felix O'Regan, pointed out that the service offered by
the Central Bank was available to the general public at all banks, building
societies and post offices until Irish notes and coins ceased to be legal
tender on February 9th.
All financial institutions will exchange up to �500 at a time into euro free
of charge for anyone, regardless of whether they have a bank account or not.
Many staff at the Republic's banks and building societies were working
behind closed doors to ensure a smooth resumption of business today. Most
banks across Europe were also closed.
Mr O'Regan rejected suggestions that the banks should have opened to the
public yesterday given the number of people who went to the Central Bank.
The IBF is advising anyone who may have cash saved in their homes to open an
account with one of the financial institutions or the post office. Mr
O'Regan stressed it could take some time to set up a bank account, and it
would be unrealistic for individuals to expect to walk into a financial
institution in the run-up to February 9th and expect it to immediately
process and lodge large amounts of cash.
Customers are also advised to expect delays and maybe lengthy queues at bank
branches when they open today.
While all staff have undergone extensive training, customers are being told
to allow more time to transact their usual business as staff and fellow
customers get to grips with the new currency. "With a little patience and
understanding the transition will be made more smoothly and effectively,"the
IBF said.
It is estimated that some 80 per cent of the country's ATMs are now
dispensing euro. The first reopened from around 6 a.m. with a high number of
transactions reported throughout the day. AIB said 65 per cent of its
network was back in service by lunchtime and 85
per cent by close of business. The first customer to withdraw euro from one
of its machines yesterday was at its branch in South Mall in Cork at around
8 a.m.
The first retailer to use one of AIB's point-of-sale machines to process
sales did so at 4.30 a.m., with garages reporting a high turnover in the
early hours.
The State's largest bank estimates that some 33,000 people used its ATMs
yesterday to withdraw cash, with a further 54,000 transactions through Laser
and credit cards. This is broadly in line with last year's levels, and
customers are generally continuing to take out the same amounts of cash as
normal.
Bank of Ireland also reported a successful completion of its conversion,
with cash machines now largely back in operation. Customers can view a list
of the locations which are open at www.bankofireland.ie.
The bank's head of group EMU planning and development, Mr Michael Watson,
said it would normally expect to process around 150,000 withdrawals on New
Year's Day. By 3 p.m. some 33,000 withdrawals had been made, with customers
taking out more than 88 euro (�70) on average. National Irish Bank and
Ulster Bank cash machines were also reopened around the State.

British moving closer to membership
By Patrick Wintour, in London

The British government yesterday came closer than ever before to suggesting
British membership of the newly-launched euro was inevitable. The Europe
minister, Peter Hain, asserted it was not sustainable for sterling to
co-exist indefinitely alongside the new European currency.
Conservatives immediately claimed the Tony Blair government was trying to
drive a sceptical, but fatalistic British public into the euro by stressing
its inevitability. Polls are showing big increases in the numbers who
believe it will be impossible for sterling to stand alone Mr Hain, speaking
on the day of the euro's momentous launch, said: "I doubt in the end that it
is possible to run a sort of parallel currency economy."
This was the furthest a senior British minister has gone in revealing
government thinking in what is widely seen as the decisive year in
determining whether Tony Blair will risk a referendum.
Mr Hain has been given licence by Downing Street gradually to harden the
pro-euro case without undermining the primacy of the five economic tests or
the authority of Britain's chancellor, Gordon Brown, in determining whether
those tests have been met. But Mr Hain later stressed that his remarks did
not change government policy.
But there is a growing belief in government circles that on the back of the
euro's successful launch, Mr Blair would like to hold a referendum next
year, and Britain's Foreign Office is now backing the move.
In theory, Mr Brown does not have to announce the result of the Treasury
assessment until June 6th, 2003, but Mr Hain said he expected earlier
publication.
The Conservative party chairman, David Davis, said the government was
deliberately presenting resistance as futile. "The fact that they are trying
to ride the argument of inevitability demonstrates actually how weak their
case is, that there aren't stronger arguments," he said.
He claimed the only test that really mattered for the government was whether
Mr Blair believed he could win a referendum. - Guardian News Service

Delays likely: euro replaces the punt
By Arthur Beesley

Delays are expected on buses and trains today when hundreds of thousands of
commuters use the euro for the first time.
Passengers returning to work after the Christmas break can pay their fares
in punts but will receive change only in the new currency.
Dublin Bus, Bus �ireann and Iarnr�d �ireann said no significant difficulties
were faced yesterday when the euro was introduced. Taxi representatives also
said the changeover ran smoothly. However, only reduced services were
available on the bank holiday, and a greater challenge is expected today
when full services are resumed.
About 500,000 people travel on Dublin Bus services on a normal day, its
spokesman said, and some 200,000 on a bank holiday. Tickets were issued in
euro denominations for the first time yesterday.
In an effort to encourage passengers to purchase pre-paid tickets, mobile
ticket units would be parked outside Clerys department store in O'Connell
Street; in Westmoreland Street; and at Aston Quay and Eden Quay.
Passengers have been urged not to mix currencies and to pay their exact fare
because change receipts will not be issued again until January 22nd.
The company normally issues change receipts which can be redeemed at its
office in O'Connell Street, but this has been suspended to facilitate the
changeover.
Based on figures from the same period last year, this was expected to leave
Dublin Bus with a change surplus of 440,000 euro. The company had divided
that amount among six charities instead of paying change. The spokesman
added that euro fares had been rounded down by order of the Minister for
Public Enterprise, Ms O'Rourke.
Iarnr�d �ireann said the changeover went "exceptionally well" yesterday.
While inter-city services were busy due to the end of the holiday season,
its spokesman said, the major test would be faced this morning when full
commuter services resume.
Staff on the Enterprise service between Dublin and Belfast had handled
sterling, punt and euro yesterday, he said. Rail passengers were encouraged
to use pre-paid monthly and weekly tickets. The company is running a draw to
encourage take-up.
Bus �ireann's spokesman also said no major difficulties were faced
yesterday. However, many of those who used the service were travelling with
return tickets purchased before Christmas, and commuter traffic was low.
With full services resuming today, the company is accepting payment in both
currencies until February 9th. It began issuing change in only euro
yesterday.
Despite a fare increase from yesterday, taxis were thin on the ground on the
night of December 31st and on New Year's Day. The vice-president of the
National Taxi-Drivers' Union, Mr Vincent Kearns, attributed the shortage to
a "low" bank holiday charge which was "no great incentive" for drivers to
work.
The fare rise brings the daytime rate for a five-mile journey 15.7 per cent
higher. Of the euro's introduction, Mr Kearns said the greatest problem was
that drivers had not been able to stock up with euro notes before yesterday.
In addition, only 40 per cent of drivers had converted their meters in
advance of the changeover.

Bubbly greets early money-changers
By Mary Minihan

Champagne does not usually flow at the Central Bank in Dublin at 10 a.m. but
an exception was made yesterday for the introduction of the euro. Bank staff
were surprised by the enthusiastic response to their offer to change pounds
to euros on a frosty new year's morning and rewarded their chilly customers
with champagne, whiskey and hot drinks.
"We don't normally have champagne in the Central Bank at this time of the
morning, but I think we can say the euro is popular by the looks of it,"
said a spokesman, Mr Neil Whoriskey.
More than 1,500 transactions were carried out at the bank yesterday, with
the average involving �300 (380.92 euro). However, a significant number of
customers wanted to exceed the bank's �500 exchange limit.
"We did have cases with some people with thousands of pounds, at least one
customer with more than �3,000," Mr Whoriskey said. "We had to explain
nicely to them that our limit was �500."
About 100 people, mostly senior citizens, had gathered outside the bank by
10 a.m. In the afternoon, the queue stretched down the steps and round the
corner to Dame Street. At 2.15 p.m, bank staff stopped additional people
joining the queue and the last customer left the bank at 5 p.m.
Although shops were still accepting pounds and most city-centre cashpoints
were dispensing euros, many preferred to exchange what was left of their
"old money" at the only bank in the State to open for business yesterday.
First in line was Mr Robert Wilson from Stoneybatter, who turned up at 7.45
a.m., but only because he thought the bank was opening at 9 a.m. Mr Wilson's
long wait to change money for his mother and himself was rewarded with a
bottle of champagne, presented to him by bank staff when the doors finally
opened.
He said the adoption of the euro would make it easier for him to follow his
favourite football team, Arsenal, around Europe.
A Kildare man, Mr Edward Lynch, was waiting to change �300 for the euro
equivalent. "What I'll get for that I don't know. I haven't a clue," he
said.
However, once he got his hands on the euro notes, he was determined to "try
them out in the pub".
Mr Tom Byrne from Walkinstown said he had no choice but to turn out early to
get his hands on the new money. "I have hungry grandchildren waiting to grab
it," he said. Did they understand the new currency? "I hope so, because I
certainly don't!" New Year's Eve reveller Mr Andrew Mansfield from Upper
Leeson Street in Dublin called at the bank after witnessing angry scenes in
the early hours of yesterday morning.
He said some of his fellow clubbers did not know cash points would close at
1.30 a.m. on New Year's Day morning and were left without enough money to
get home.
"People were trying to get money out at College Green last night. There were
a lot of very annoyed people with no money," he said.
Mr James Tunney, from Finglas but living in Scotland, was collecting some
euros to make his trip to France next week easier, while Ms Marion Winget
from Tallaght said she simply wanted to see what the new money looked like.

'Exchange' brings queues to west
By Lorna Siggins, in Galway

The euro's introduction caused large queues and larger headaches in one of
Galway's main retail outlets yesterday, when it opened for restricted New
Year's Day business in the afternoon.
Customers of Pat Joyce's supermarket in the western suburb of Knocknacarra
were asked to change pounds to euros at a service counter before paying for
purchases at the retail tills.
However, when contacted by The Irish Times, Mr Pat Joyce, the supermarket
owner, denied that this was the case and said that there had been some
"confusion" among staff in the first couple of hours of trading. Signs
advising customers of this requirement had been placed at the entrance and
were still
in place at 4.30 p.m. yesterday. Staff at the main tills were refusing to
take pounds, but would accept credit cards.
Queues for the "exchange" at the customer services desk stretched well out
the main door at one point, in bitterly cold weather.
Mr Joyce acknowledged that the system may have been applied in the first
couple of hours of trading, but shortly before 6 p.m. he said the exchange
was merely to facilitate customers. Pounds could be presented at all tills,
he added. "A lot of people are delighted to have this exchange service, and
I have had no complaints," he said.
Joyce's supermarket serves a catchment of almost 12,000 in Knocknacarra.
Smaller shops which opened in and around Galway yesterday were accepting
pounds and returning change in euro.

Mixed blessing for Limerick traders
By �ibhir Mulqueen, Midwest Correspondent

Limerick traders greeted the euro with mixed feelings yesterday, with most
thankful for the quiet bank holiday business. Some businesses, however, felt
they were doing the banks' job in providing conversion facilities.
City centre pubs, which would normally have a busy lunchtime period, made do
with people having a quiet drink while the unfamiliar freshly minted change
became a point of conversation.
Eugene and Lillian Quinn, who had been in South's Pub at the Crescent, said
the new coins were a nuisance and looked similar to Irish currency coins.
Mr John Sheehan noticed that the �2.20 he paid for a pint of Beamish was the
euro equivalent of ?2.79, a cent less than the new official euro price. For
Guinness drinkers the price, at ?3.05, appeared to have reached a new high.
"We had a bit of a conversation with the people behind the bar about what
system they are working. They were not busy at the time so it was easy to
converse with them," Mr Tom Barry said.
"The pint is as good as ever," his brother, Mike, added.
Ms Peggy Hickey, of South's, said most customers had their calculators with
them for examining euro change. "We have one till for changing the currency
only. It is all about taking your time."
Ms Betty Clancy, of Kevin McManus Bookmakers, said the premises had to take
a large amount of smaller denomination coins in order to have an adequate
supply of 1 and 2 euro coins. She felt the Irish currency should have been
withdrawn overnight instead of having a changeover period. "We are doing the
banks' job for them. We are converting money for them. It is making it
harder for us, slowing down our business."
Ms Maria Flynn, the duty manager at the Glentworth Hotel, felt it was a bad
day for banks to be closed because people tended to convert large amounts of
cash. "They are handing out �100 or �200 for us to change. It is not as if
we are changing the amount they want to buy a drink," she said.
Although most businesses were quiet, Colbert Station was busy with
travellers.
Iarnr�d �ireann (Irish Rail) and Bus �ireann (Irish Bus)  both operated
separate queues for currency conversion. "Nobody is hostile to it. I think
more people have time on their hands to think about it. They are not
thinking about anything else except euro today," Ms Rita Lyons, an Iarnr�d
�ireann teller said.
The Paper Train shop at the station was feeling the loss of dedicating one
till to conversion but Mr Niall Rice felt that most people would use the
euro exclusively within a week. He was critical of the similarity between
the 1 and 2 euro coins. "If you handle it quickly, you are going to get
caught.
There should be more of a difference."
Mr Glenn McLoughlin, manager of the White House, said the 50 cent and 20
cent coins were also similar. "If it had been last night or last week, there
would have been mayhem. But anything to do with money, you would not be long
getting used to it."

City shops report smooth switch
By Mary Minihan

A smooth switch to the euro was reported by retailers and shoppers in a
relatively quiet Dublin city centre yesterday. At Dunnes Stores in the St
Stephen's Green Centre things seemed to be running smoothly and there was
little evidence of the chaos euro-sceptics had predicted.
"I feel that I'm totally European today," declared Ms Irene Brennan, of
Ballsbridge, as she left the store. She felt there was a "wonderful buzz"
around the launch of the currency. However, Ms Judith Hart, at the store's
euro information desk, said while younger customers accepted the currency,
many older people had told her they "didn't want to have to deal with it".
Mr Nicky Wallace, from South William Street, used an old �10 note to pay for
his morning paper in Grafton Street and received his "first handful of
euros" in change. He praised the city's shop assistants for their
efficiency, saying they were at the "coalface".
Most shoppers were using "old money" to pay for their goods, although a
spokesman for HMV on Grafton Street said 25 per cent of transactions were in
the new currency. As Dublin was not particularly busy yesterday, the real
test will come when business returns to normal after the holiday break.
Consumers were urged to remain vigilant in a joint statement by the Minister
of State for Consumer Affairs, Mr Tom Kitt, and the Director of Consumer
Affairs, Ms Carmel Foley. Mr Kitt said: "Over the coming weeks, the full
team of inspectors in the director's office will be out and about keeping an
eye on the way in which retailers have converted prices to the new
currency."

Shy euro dodges  midnight revellers
By Jane O'Sullivan

Dublin's Temple Bar may have been full of new year revellers in the early
hours yesterday but there was precious little sign of the euro.
Despite its official introduction at midnight on January 1st, a trawl of the
capital's cultural quarter found that pounds and pence still held sway in
pubs, fast-food outlets and late-night shops.
The hard-pressed staff in the thronged Oliver St John Gogarty pub admitted
they were waiting "until tomorrow" before taking on the additional task of
dispensing the new currency.
Meanwhile, fast-food outlets like Eddie Rocket's and Rasher Byrne's
dispensed burgers and sausages to the hungry - in return for pounds and
pence.Also waiting for the daylight hours before switching over to the new
currency were the 24-hour shops who were sticking with what they knew best.
Centras and Spars around the city centre were still dealing in pounds,
giving them out even to those who were paying with credit cards and looking
for money back.
By now desperately seeking the euro, The Irish Times decided to turn to the
city's transport providers to find evidence of its arrival, but the staff at
the Dublin Bus Nitelink ticket desk on Westmoreland Street had yet to be
presented with euro while the driver of the 39N Nitelink bus to
Blanchardstown had also seen no sign of it.
But just when hope was at an end, the elusive euros finally surfaced at the
Heavenly Food Company in the heart of Temple Bar. Serving grilled
frankfurters and Italian coffee, and staffed by a Belgian and a Ukrainian,
the caf�'s till was well stocked with new euro coins.
With a little prompting from The Irish Times, they undertook their first
euro transaction. Presented with �2 for a hot chocolate costing �1.65, they
handed out 44 cents, the equivalent of 35p, in change. The bemused purchaser
pocketed the shiny new coins and wandered off into the night, without her
hot chocolate.
In Continental Europe there was much more of a rush. Many people rushed to
withdraw euros from automated teller machines (ATMs) as soon as the euro
became legal tender at midnight. Belgium had reported 600 cash withdrawals
per minute in the first two hours of the new year.
And in Beziers, France, Mr Oscar Lyons, from Glenageary in Dublin, claimed
to be the first to use Irish euro coins in France. The youngster used coins
from a starter pack to purchase a drink in a caf� at the stroke of midnight
( 11 p.m. Irish time).
In Germany, taxi-drivers were first off the mark, so to speak, offering
change in euros by midnight, though many shops and bars were reportedly
slower to change over.
By the end of the week we should all be well used to it. The EU Commission
forecast that more than half of all transactions in the euro zone would be
conducted in euros by then.


A question of  national identity

Old habits will die hard in Europe's border countries and practical benefits
can outweigh visions of integration, writes Ian black from Maastricht

Patti Mesa's hot apple donuts were selling well in the freezing cold at
Maastricht's old Main Square yesterday lunchtime and she was handling her
euro change with impressive ease. Twenty years of living in the picturesque
Dutch town where the famous EU treaty was signed in 1991 have done nothing
to soften her distinctive Spanish accent, but the arrival of the single
currency has quickly provoked thoughts about the links between money,
identity - and the future.
"I certainly feel Spanish when I am at home in Tenerife," Ms Mesa said,
looking tired and perhaps a tad hung over after Monday night's festive
euro-bash as she sprinkled sugar over a batch of steaming waffles. "But when
I am here I feel more European."
With millions across Europe starting to adjust to the novelty of life
without guilders, marks or pesetas, old assumptions about national
allegiance may eventually be challenged and a new sense of Europeanness
forged. But a brief Guardian straw poll in the chilly borderlands of the
Netherlands, Germany and Belgium yesterday suggested old habits may die
hard.
Mark Hollands (36), an engineer, biking through Maastricht's cobbled streets
to buy currant cakes from Miss Mesa's booth, was "amazed" by the change over
to the euro but quite certain that his own identity was not under threat. "I
will still feel Dutch. We have a queen and the Germans do not."
In the Pothuiske cafe, on the banks of the icy Maas, near where John Major,
Francois Mitterrand and Helmut Kohl did summit battle a decade ago,
pony-tailed waiter Walter Van Der Heijden felt that the town would now
become even more of a crossroads. But his own relaxed sense of identity
would not change. "I'm not chauvinistic but I am definitely not going to
feel less Dutch because of the euro."
Just half an hour's drive away, in the German city of Aachen, national
identity seemed equally intact as citizens formed orderly queues in the
Spaarkasse Bank to change their marks into euros or withdraw their first
bank notes at the cashpoint on the street outside.
"I still feel very German," said Mario Melcher (27), who works in a
children's home. "But that is not because of money. After all, that is just
something you pay with. Here the borders are still very much felt because of
the second World War.
Yet europhoria does not seem set to sweep all before it for modern
Europeans, concerned not by the visions of the founding fathers of
integration and the high flown rhetoric of their leaders, but by ordinary
practical benefits.
"It will be a very good thing on holiday," said Steve Troeuer, a Belgian
builder, withdrawing his first euros in Riemst, a non-descript village five
miles from the Dutch border. - (Guardian Service)


Taoiseach celebrates euro launch
By Arthur Beesley

With the aplomb of a man on general election footing, Bertie Ahern chose a
Drumcondra newsagent yesterday to carry out his first euro transaction. He
bought sultana cake, milk and pears. He paid in punts, took the change in
euro and smiled for the cameras. Easy.
Never one to underplay such occasions, he then sipped champagne with the
shopkeepers, Marion and Jim O'Neill. Like the bubbly, this was vintage
Bertie.
According to Marion, the Taoiseach comes in for newspapers and fruit every
day. She was up past 3.30 a.m. on New Year's Eve, but had the shop open by
10.30 a.m. in anticipation of the visit. Ms O'Neill's 18-year-old daughter,
Sin�ad, was up early, too. For her trouble, she received a Milky Bar from
the Taoiseach.
As a gaggle of photographers jockeyed for position, a handful of Mr Ahern's
supporters stood by the fruit shelf in the small shop. Yes, Mr Tom Cullen
(72) felt slightly "dicey" after New Year celebrations the night before. But
that was not to deter him. A long-standing Fianna F�il supporter, he doesn't
miss opportunities to see the great man. He had secured his position with a
friend, Ms Phylis MacArthur, long before the Taoiseach arrived at 1 p.m.
Yet the fuss seemed lost on Ms Ann O'Reilly, who wandered in to buy milk
ahead of Mr Ahern. Asked about the euro, she received in change, she said:
"I don't know, I'll have to get used to them."
At five years old, Siobh�in Murphy was among the youngest present. She was
there with her father, James, brother, Tom, and sister, Emer, to witness
what Bertie described as significant symbolic purchase. "Do you understand,
Siobh�in?" asked James. "He's the leader of our country."
Siobh�in didn't. But others did. Thus the chairman of the Euro Changeover
Board, Mr Philip Hamill, was present to advise that no hiccup had yet been
reported in what has been described as an unprecedented logistical
challenge.
Still, Mr Hamill had not had a late night. "Our work was done. We were on
call but we weren't called," he said.
There, too, was the National Lottery chief executive, Mr Ray Bates, who
observed the Taoiseach scratch a game card with a newly minted euro coin.
Three stars were revealed, but the real prize will be fought for in the
summer when an election is called.
Will Bertie still be in the job after the poll? "We'll keep trying," he
said. All politics are local. So expect more walkabouts by the Taoiseach
soon.

Price differentials across zone easier to spot
By Clare O'Dea

The euro has given Irish consumers a massive new stamping ground for virtual
bargain-hunting. If you could buy your car in France, fill it up with petrol
in Greece and stop off in Spain for a fillet steak and a trip to the cinema,
you would save yourself a grand total of 9,423.58 euro (�7,421.67).
With the advent of the single currency, price differentials across the 12
participating states are now easier to spot.
Prices for basic goods and services in the Republic compare fairly well with
other eurozone countries, with the notable exceptions of cars, cigarettes
and beef, according to a price survey carried out by RT� Radio's Liveline
team.
The biggest item in the survey, a five-door 1.8 litre Ford Mondeo, is most
expensive in the Republic at 27,045 euro, 53 per cent higher than the price
paid
by motorists in France and 24 per cent above the average eurozone price tag.
Portugal and Finland are the only other two countries where the Mondeo is
priced close to the Irish level.
Taxi fares varied wildly from one country to the next. In the example
quoted, a 10 km taxi ride to the city, the fares ranged from 6.50 euro  in
Greece to 30 euro in the Netherlands.
The fare charged to Irish taxi customers for the journey was below average,
at 12.70 euro.
The Republic is by far the most expensive place in the eurozone to buy
cigarettes, the survey shows. A pack of 20 Marlboro costs 5.05 euro here,
compared with 2.10 euro in Portugal, 2.35 euro in Greece and 2.40 euro in
Spain. The next most expensive place is Finland, at 4 euro a pack.
Irish consumers could be forgiven for assuming that meat and dairy products
are good value here but the Liveline survey reveals that this is one of the
most expensive European states to buy fillet steak.
At 25.38 euro , the price per kilo in the Republic is second-highest after
Finland and three time more expensive than Spain. The average price is
19.46 euro per kilo.
The cheapest litre of full fat milk can be bought in Belgium for 0.55 euro,
and the price of an Irish litre is slightly above average at 0.83 euro.
The price of Coca-Cola is also above average in the Republic, the
second-highest in the eurozone at 1.33 euro for a 1.5-litre bottle.
Portugal leads the way as the cheapest place to buy a 0.5-litre can of
Guinness, a real bargain at 0.97 euro. The Netherlands is the most expensive
at 5.31 euro and the Republic is below average at 3.43 euro.
For practical purposes, most European consumers won't be able to profit
greatly from the knowledge that some goods are cheaper in other states, but
euro advocates argue that greater price harmonisation is a likely
longer-term outcome of the single currency project.

Euro launch described 'unqualified success'
>From Denis Staunton in Brussels

The European Commission and the European Central Bank (ECB) have hailed the
launch of euro notes and coins as an unqualified success.
A spokesman for the Economic Affairs Commissioner, Mr Pedro Solbes, said
yesterday that there had been no reported problems with the introduction of
the new currency. "It seems that all the reports are positive. Nothing much
is happening. No news is good news," he said.
The ECB said it expected almost all cash machines in the 12 euro zone
countries to have converted to euros by last night.
Two thieves stole 90,000 euro from a Spanish bank, but a Europol spokesman
said that fears of widespread theft and fraud had proved groundless.
"From the law enforcement perspective the euro is one of the best protected
currencies. It has had a smooth start," he said.
The Commission predicted that half of all transactions in the euro zone
would be conducted in euros by the end of this week.
The euro was launched at midnight on Monday with a spectacular fireworks
display in Brussels. Almost 20,000 people gathered at a monument near the EU
headquarters to watch the spectacle.
In Frankfurt earlier on Monday, the ECB President, Mr Wim Duisenberg,
predicted that most Europeans would get used to using euros within a few
weeks. "People have to learn. they have to get used to the new money. In a
few weeks' time, most people won't remember their old currencies," he said.
Mr Duisenberg presented awards to 24 schoolchildren from the 12 euro zone
countries, including nine-year-old Imelda Hickey from Castledermot, Co
Kildare, and 11-year-old Gerard Raftery from Tuam, Co Galway. The children
were winners of a competition about the euro notes and coins.
Mr Duisenberg predicted that the introduction of the euro would add momentum
to the drive towards European integration in other policy areas. "It will be
a catalyst for further integration in other fields, such as defence and
foreign policy," he said.
This theme was reflected by the EU Commission President, Mr Romano Prodi,
who said it was "a special day, a great day for Europe."
Pointing to the Commission's view on how the EU should not develop, he
called for "more common rules" for economic and budgetary policy.
The French President, Mr Jacques Chirac, hailed the euro's launch as a
hugely significant event for Europeans. "The euro is a victory for Europe.
After a century of being torn apart, of wars and tribulations, our continent
is finally affirming its identity and power in peace, unity and stability,"
he said.

Some pubs refuse to accept Irish coins
By Jane O'Sullivan

The refusal by some pubs to accept Irish coins was the biggest cause of
complaint among consumers yesterday, the first day of trading in the euro.
Although the changeover generally went smoothly, some consumers were annoyed
when certain pubs declined to change Irish pound coins for euro and cent.
Nearly a quarter of the 83 calls fielded by the Office of the Director of
Consumer Affairs yesterday related to the issue and it involved pubs across
the State.
Ms Carmel Foley said she would contact the two groups representing
publicans, the Licensed Vintners Association (LVA) and the Vintners
Federation of Ireland (VFI), to seek an explanation.
Although Ms Foley said consumers had to act in reasonable fashion, and not
expect pubs to exchange large bags of coins which should rightly have been
taken to the bank, they should be able to conduct normal transactions.
"People can't expect to come in with their piggybanks but they should be
able to do normal coin transactions."
The Irish pound, in all its forms, remains legal tender until February 9th.
With the banks closed, pubs, bookmakers, 24-hour shops and petrol stations
were on the frontline in dispensing the new currency and reported few
problems.
"So far it's been OK," said Mr Tom Fitzgerald, of Fitzgerald's Albert House
pub in Sandycove, Dublin. "We have calculators, ready reckoners, all the
gear and people have been very good about it."
Many people went out armed with euro calculators and the main source of
confusion related to the smaller euro coins, particularly the five-cent coin
which is copper-coloured, unlike the old silver-coloured 5p piece.
Ms Foley said her office fielded a steady stream of calls through the day
and, aside from the problems over acceptance of coins, nothing new was
thrown up.
There were some complaints about toll road charges, which was nothing to do
with the euro, Ms Foley said.
A few callers were annoyed at having to queue twice, once to change their
money and then to carry out their transaction, while there were the usual
questions about the value of the euro.
"So far this voluntary system of compliance is working very well," said Ms
Foley. "But if I find any evidence of wilful abuse by retailers I will, of
course, publicly bring it to the attention of consumers and the Government."
The euro notes contain numerous state-of-the-art features to help protect
against forgeries.
The bank notes are printed on pure cotton paper which contains fluorescent
fibres. Some sections of the face are printed in relief, making them
identifiable to the touch and acting as safeguards against forgery. Further
ways of detecting whether a euro note is a forgery include checking the
watermark and security thread running through it.
The watermark displays a picture and the number indicating the value, which
are visible if held up to light. The security thread is a dark line running
through the note which can also be seen when held to light.
Other tell-tale signs are discernible if the banknote is tilted. These signs
vary between low and high denomination notes.
Low denomination notes of five, 10 and 20 euro have a hologram foil stripe
on which can be recognised the euro symbol and the value of the note. These
denominations also have an iridescent stripe on the reverse side, which
shines when the note is tilted under a bright light.
Higher denominations of 50, 100, 200 and 500 euro have hologram patches
showing an image of the motif and the value of the banknote when the note is
tilted. Higher-value notes also have a colour-shifting ink feature. When the
note is tilted, the value numerals change colour from purple to olive green
or brown.
If you encounter difficulties with the introduction of euro notes and coins.
The Irish Times wants to know about it. Our daily Euro Watch column will
chart readers' experiences with the transition process. Telephone the
finance department on 01-679 2022 between 2 p.m. and 4 p.m. today or e-mail:
[EMAIL PROTECTED]
Assorted official helplines will also be open. For consumers: Euro
Changeover Board of Ireland - Tel: 1890-201050 (9 a.m. to 7 p.m.), Website:
www.euro.ie; Office of the Director of Consumer Affairs - Tel: 1890-220229
(10 a.m. to 1 p.m., 2 p.m. to 5.30 p.m.), Web: www.odca.ie
For business: Forf�s - Tel: 1890 20 83 08 (9 a.m. to 5.30 p.m.), Web:
www.emuaware.forfas.ie


'I'm not European, I'm British'
>From Rachel Donnelly, in London

In the famous stores of London's Oxford Street yesterday the euro makes only
a few appearances.
A few hours after 304 million people in 12 European currencies begin the
biggest currency changeover in history many British shoppers look on
curiously and wonder what all the fuss is about. In Selfridges, the
fashionable department store, Jackie (79) is shopping for a book about
cricket but she won't be using the euro even though the store accepts the
new currency, because her "gut instincts" tell her the euro will
be bad for Britain.
"I always feel, rightly or wrongly, that I'm not European, I'm British," she
says. "I know that it might be useful for people who are travelling, but the
thing that frightens me about it is that we will become part of a European
superstate."
A straw poll among 10 other shoppers found seven didn't want Britain to join
the euro and three said they supported the single currency.
Fears about joining the euro aren't shared by Gary Tse (50), a financial
adviser from Surrey browsing among the sales, who says if he had any euros
in his pocket he would definitely use them. "Britain should join the euro
because it would do away with nationalism," he says.
While Britain hasn't joined the euro, High Street stores from Marks and
Spencer, Dixons and Sainsburys to the luxury end of the market at Harrods
have said they will accept the single currency.
It makes economic sense in London, but whether "euro creep" - the ability to
spend euros alongside sterling - will make a difference to shopping in rural
Dorset or Ayrshire or persuade a sceptical British public to abolish
sterling is debatable.
The euro makes a brief appearance outside the House of Fraser store.
Volunteers from the pro-euro Britain in Europe group are handing out "fake"
euro notes to shoppers.
With their blue balloons emblazoned with yellow euro signs and "Happy New
Year, Happy New Euro" catchphrase they are a positive bunch, even in the
midst of indifferent shoppers.
Finally, at Marks and Spencer's flagship store at Marble Arch, a real euro
note is handed over to a thrilled assistant.
Peter (43), an engineer from Berlin, is visiting London for New Year and
changed some sterling for euros at a bureau de change a few hours ago.
He is buying some candles, so he hands over a 10-euro note, the assistant
presses a button on the till and he is given his change in sterling. "It was
all very easy once I got to the till," explains Peter. "I don't think it
will be very long before Mr Blair takes Britain into the euro."
With reports that Tony Blair will target female voters in a referendum on
British membership and the Europe Minister, Peter Hain, predicting that an
assessment of the Chancellor's famous five economic tests will be made in
the next 17 months, Britain is looking on as the euro is born.
Largely eurosceptic print media depicted the currency changeover as a leap
into the dark, lamenting the loss of so many currencies with a mixture of
curiosity and defiance. Pessimism about the euro was evident in the Times's
front-page treatment of the Brussels launch, describing the event as having
"as much showmanship as a chef with a sunken souffl�." The Daily Telegraph
berated the Blair government for even contemplating the "surrender" of
sterling "simply because some others are doing so."


Germans mark change with little sentiment

Confusion was kept to a minimum as Germans bade farewell to the deutschmark,
although there was a bit of nostalgia, too, reports Derek Scally from Berlin
A kilo of bananas is all that Gerhard Schr�der wanted to buy with his first
euro yesterday. He tossed his last two-deutschmark coin to a busker on the
street on his way home, just hours after Germany bade a dry-eyed farewell to
its old currency and made a smooth transfer to the euro. After 53 years the
country's most cherished symbol of post-war prosperity has been consigned to
history.
"Many people will be a bit wistful. We associate the mark with good old days
in Germany, but you can be sure of one thing: even better days are to come,"
said Mr Schr�der in paternal tones during his New Year address.
Over one million people gathered around the Brandenburg Gate in central
Berlin on Monday for an elaborate fireworks display and street party to
welcome the new year and the new currency.
German banks and businesses reported a smooth changeover yesterday, with
enough notes and coins to go round. Confusion was kept to a minimum thanks
to the simple exchange rate of almost exactly two deutschmarks to the euro.
"People will ask themselves why we didn't do this sooner," said Hans Eichel,
the German Finance Minister, as he received his first euro banknotes.
As the new year's fireworks died down on Monday night, small queues formed
around Berlin and other cities at cash machines that started dispensing
euros shortly after midnight.
"To an outsider it must look crazy, all of us here standing in the snow to
collect money we can't even spend until tomorrow," said Dieter Fischer,
outside a bank in Berlin's Kreuzberg district.
Others had a more practical reason for waiting in the cold for the new
currency. Almost all Berlin banks shut down their ATMs in the early
afternoon on New Year's Eve to be ready for midnight, an unpleasant surprise
for partygoers.
In the city's bars and cafes, small groups of people gathered to study the
new notes on Monday night.
"Definitely just play money," was the view of one woman. "It's not that
bad," said a female friend. "But it does remind me more of gift tokens than
cash."
Yesterday morning the queues at the cash machines had moved to the few shops
in the city that were open, such as at the Ostbahnhof train station in
eastern Berlin. Traders there said there were few problems with the new
currency, though few customers were coming in with it.
"Out of 10 people I have just served, only one actually paid in euro," said
one shop owner. "I just hope we don't turn into the country's unofficial
bureau de change."
Malte Mienert from the eastern district of Treptow said most former East
Germans had fewer emotional ties to the mark than Westerners.
"The euro is just another currency for us easterners, like the deutschmark a
decade ago," he said.
There was little sign of nostalgia among Berliners for the late, great
deutschmark. Although the currency reform of 1948 marked the post-war return
to prosperity, the deutschmark was one of the first steps in the process
that led to the Russian blockade of the city and the Berlin Wall.
"The Germans are a little bit annoyed by it all, I think," said Bill Keogh
from Limerick.

Threat of bank strike  takes shine off euro

A bank strike threatened for today has taken the gloss of France's
transition to the euro and is adding to the confusion caused by its
introduction, according to agency reports from Paris French bank and postal
workers plan to go ahead with a strike today, giving
French consumers a potential headache on the first business day after the
launch of euro cash.
The planned strike over pay could add to the disruption banks and post
offices already experienced yesterday, when automatic cash dispensers were
occasionally unable to cope with demand for the new currency.
Unions have warned that industrial action would be most severe at banks
where there had been no pay deal whatever in the old year and, with
financial institutions in Marseille, Toulouse in the south and Lyon in the
east expected to be worst hit. "The situation will vary depending on whether
there's been a pay deal and on what the job security and working conditions
are like locally," Force Ouvriere (FO) union representative Pierre Gendre
said.
Postal workers are also expected to strike today after three unions appealed
for industrial action, all but shutting down mail delivery and counter
service - including bank services - around France.
One of the three unions, the CFDT, has also warned its strike action,
affecting counter personnel, cashiers and management would extend into
tomorrow.
But the introduction of the euro was hailed by Prime Minister Lionel Jospin,
who confessed to being "somewhat moved" as he had a first real taste of the
euro on a visit to shops in Paris's Montmartre district.
"We just have to say adieu to the franc. It was a good friend, even if it
was devalued a few times," he said. Many in France see the euro as a key
step in 50 years of efforts to bind Germany into an unbreakable alliance
after centuries of war.
Bank unions said strike action was likely to be most severe at Credit
Lyonnais, Societe Generale and Credit du Nord - all three private banks -
and at the Caisse d'Epargne co-operative bank, none of which had clinched a
pay deal.
"The strike (at the Caisse d'Epargne) will probably continue on January 3rd
because the management hasn't given any sign of wanting to negotiate," FO
representative Christian Vaccaro said, adding that no date had been fixed
for the strike there to end.
Mr Gendre said workers were also likely to walk out at the CIC and CCF banks
but that some staff at France's largest bank, BNP-Paribas, might still turn
up for work.
Management and unions reached pay deals in December at BNP-Paribas, CIC and
Credit Agricole.
In Brussels, meanwhile, Belgian shoppers were navigating their way round the
new currency .
With most Belgian shops and banks closed on the first day of the year, it
was left to corner shops - the greengrocer and the baker - to bear the brunt
of the first fumblings in the euro notes and coinage.
There was little evidence of any price hikes on ordinary day-to-day goods,
with many shopkeepers sticking religiously to the official conversion from
Belgian francs to euro - even if it made things awkward for the customer.
One woman buying a small cake in a "patisserie" near the centre of Brussels
wanted to know why the new price 1.49 euro had not been rounded up to 1.50
euro, to make life easier. "The price marked is the exact conversion - I'm
not going to be accused of taking advantage of my clients," said the man
behind the counter.
Many shopkeepers were avoiding giving away all their new coins and notes too
quickly.
Many Belgian cash points were empty by this morning, denuded fast by
customers in the hours after midnight.
Queues formed at thousands of bank outlets as people rushed to be among the
first to withdraw the new euro notes.
People even took photographs of their friends and relatives as they took out
the crisp new bank notes - and carefully pocketed the receipts as souvenirs
of the momentous occasion.


Lira keeps hold of Italian affections

Despite a half-million ATM withdrawals yesterday, few restaurant owners in
Italy were ready for the euro. Paddy Agnew reports from Trevignano. Oh no,
put those away. Don't try and pay me with those things, for pity's sake.
Just pay me in lire".
As far as familiarity with Europe's new currency is concerned, the signora
at the till in Bar Castagnistill has some way to go. Like many of her
compatriots on yesterday's first euro day, she preferred to deal in lire.
Even though she has a new cash register complete with two cash flows - one
in lire, the other in euro - she was still much relieved when I put away my
brand new 10 euro note and pulled out familiar old lire to pay for my
cappuccino and cornetto.
In these northern Lazio parts at least, the euro was notable more for its
absence than its presence yesterday. Walking away from the village bank
after successfully claiming a first fistful of euros from the cash
dispenser, I was greeted by enthusiastic euro-crusaders out on the search
for the new currency, which was otherwise unavailable.
Indeed, the euro would appear to have made most impact at ATM machines,
since more than half a million euro withdrawals were made successfully in
Italy between midnight on New Year's Eve and midday yesterday, according to
ABI, the Association of Italian Banks.
Down in Naples, however, not everything functioned quite as smoothly as in
our village since lengthy queues gathered in front of the only two out of 30
cash dispensers in the city centre which had actually made the change to
euro.
Despite the rush on cash dispeners, however, the bars, restaurants and
petrol stations around us were all still working in lire yesterday. Memmo,
who runs an IIP petrol station, pointed out that his self-service
distributor will not be converted from lira to euro for at least three
weeks.
Down at the Cantinella restaurant, staff were at full stretch dealing with a
brisk New Year's Day trade of day trippers out from Rome to enjoy the
lakeside air on a brilliantly sunny first day of the year.
Yet, despite both a full house and the fact that all the bills were made out
in euro, no one had actually paid in Europe's new currency.


Spaniards take euro in their stride

Spain, one of Europe's most enthusiastic member-states, has given a warm
welcome to the new currency, writes Jane Walker in Madrid

Spain, where the euro has been welcomed with open arms by almost 70 per cent
of the people, is one of Europe's most enthusiastic members.
Although Spaniards can use the peseta alongside the euro until the end of
February, the vast majority are expected to pay with the new currency within
a few weeks.
It has been estimated that over 70 per cent of euro notes will be
distributed by automatic cash machines which are used by the majority of
Spaniards. Almost a quarter of the 190,000 cash dispensers in Europe can be
found in towns and villages across the country, and an estimated 75 percent
of them had been converted by yesterday morning.
Taking a walk around the streets near my home in Madrid at midday yesterday
I counted seven out of eight cash machines distributing euros to queues of
people - many of them armed with their pocket converters. The remainder of
the machines are expected to be converted when the banks open for business
this morning .
One of the early customers at his local cash dispensing machine was the
Economy Minister, Rodrigo Rato. He put his card in and withdrew 120 euros
before going into a local cafe for a breakfast coffee. But when he paid with
a 50 euro bill, he was asked to autograph the note to be framed as a
souvenir of a historic day.
New Year's Day is a traditional holiday in Spain, with nearly all shops and
offices remaining closed. But more than 900 bank offices opened for business
for three hours yesterday to meet the demand for the new currency. There
were long queues at some of them; many of the customers were the owners of
small businesses and taxi-drivers requiring euros to give as change, but
many came out of curiosity.
"I didn't have anything better to do, so I decided to come along with the
kids," said one client in a Madrid bank.
The arrival of the euro has caused concern among the many Spaniards who had
accumulated millions of pesetas kept hidden from the tax authorities. There
has been a big increase in the number of people buying expensive cars and
property, much of it paid for in hard cash as a way of spending their black
pesetas.

First test for euro today
By Siobh�n Creaton, Jane O'Sullivan and Eibhir Mulqueen

The introduction of euro notes and coins will face its first real test today
when people return to work and the major retailers and financial
institutions reopen for business after the holiday break.
Delays are expected on buses and trains when hundreds of thousands of
commuters use the euro for the first time. Passengers can pay their fares in
pounds but they will receive change only in the new currency. With the
majority of retail outlets and all financial institutions, with the
exception of the Central Bank of Ireland, closed for business yesterday, the
euro slipped into circulation with relative ease in the Republic.
The first euro notes made their appearance here in the early hours of New
Year's Day, with cash machines dispensing 10 and 20 euro notes from 6 a.m.
By close of business some 80 per cent of cash machines around the Republic
were loaded with the new currency.
Exhaustive preparations coupled with the Euro Changeover Board's awareness
campaign has ensured a smooth transition so far. Shops, pubs and bookmakers
found themselves in the front line in dealing with the new currency, and
signalled a few glitches and potential problems in the days ahead.
The biggest cause of complaint among consumers yesterday was the refusal of
some pubs to accept Irish coins. Although pubs were giving customers euro
notes and coins instead of their pounds and pence, some were only prepared
to change Irish currency notes, declining to accept coins although these
remain legal tender until February 9th.
The Director of Consumer Affairs, Ms Carmel Foley, said nearly a quarter of
all calls to her office related to this issue and it involved pubs all over
the State. Ms Foley said she planned to contact the two groups representing
publicans, the Licensed Vintners' Association and the Vintners' Federation
of Ireland, to seek an explanation.
In Limerick, Ms Betty Clancy of Kevin McManus Bookmakers complained about
having to do the banks' job. The business had to take a large amount of
smaller denomination coins in order to have an adequate supply of 1 and 2
euro coins, she said. She felt the Irish currency should have been withdrawn
overnight instead of having a changeover period.
"We are doing the banks' job for them. We are converting money for them. It
is making it harder for us, slowing down our business," she said.
Ms Maria Flynn, the duty manager at Limerick's Glentworth Hotel, felt it was
a bad day for banks to be closed because people tended to convert large
amounts of cash. "They are handing out �100 or �200 for us to change. It is
not as if we are changing the amount they want to buy a drink," she said.
The Central Bank of Ireland was the only financial institution to open to
the public yesterday. Long queues formed throughout the day to exchange
pounds for euro, with some 1,500 transactions completed. A spokesman said
most people changed amounts of between �300 and �500, suggesting that most
customers who visited the bank did not hold an account at any financial
institution.
Banks, building societies and post offices will exchange up to �500 in cash
in any one transaction free of charge until the pound ceases to become legal
tender in February. This service is available to everyone regardless of
whether they have a bank account.
The Irish Bankers' Federation rejected suggestions that the banks should
have opened yesterday, saying staff were working behind closed doors to
ensure a smooth transition when they open for business today.
Customers are being warned to expect delays and possibly lengthy queues when
visiting their local branch.

Euro a catalyst for closer union

The launch of the euro will exert strong pressure for even further European
integration, suggests Denis Staunton

The European Central Bank's launch party for the euro in Frankfurt on Monday
morning had all the ghastly hallmarks of an official European event.
Children from each euro zone member-state were paraded as incarnations of
Europe's future while a hapless musical theatre troupe performed a
cringe-inducing hymn to the single currency.
At around the same time in Brussels, the Commission President, Romano Prodi,
and the Economic Affairs Commissioner, Pedro Solbes, were spluttering the
usual platitudes about the historic significance of the introduction of euro
notes and coins.
No amount of ham-fisted stage management could conceal, however, the real
importance of the currency changeover as a shift in the process of European
integration.
As the ECB President, Wim Duisenberg, suggested on Monday, the introduction
of the euro will serve as a catalyst for further integration in such fields
as economic, defence and foreign policies.
Europe's single currency has always had more to do with politics than
economics, even if Mr Duisenberg claims that it boosts economic growth and
promotes stability. When EU leaders started the process of economic and
monetary union at Maastricht in 1991 it was partly in response to German
unification the previous year.
France was determined that a bigger Germany should lose its dominant
economic position in Europe and that the Bundesbank should no longer be able
to determine the monetary policy of the entire continent.
The historian Emmanuel Todd, who advised both Francois Mitterand and Jacques
Chirac, summed up the French attitude to the euro succinctly. "Behind the
euro euphoria lay a wish to make Germany disappear as a financial big
power - to resolve the German question once and for all," he said.
The former German chancellor, Helmut Kohl, believed that political union was
essential for the success of economic and monetary union. But as
Luxembourg's prime minister, Jean-Claude Juncker - the only surviving head
of government who was at Maastricht - recalled this week, Dr Kohl held back
from pressing for political reforms.
"Germany needed the 11 partner countries then in the union to deal with its
own reunification. And the mood within the union was not ripe for a closer
brush with integration.
'If Chancellor Kohl had pushed too hard back then on the issue of political
integration, some partners would inevitably have got the impression that
Germany was so insistent on political union because it did not really want
the currency union.
"That in turn would have had disastrous consequences for reunification and
for how European partners came to feel about it," Mr Juncker said.
Mr Juncker acknowledges that economic and monetary union is a highly
political project but he argues that the euro alone will not banish the
sense of popular alienation from the EU.
"I always used to see monetary union as a policy of peace pursued by other
means. Today, however, I believe that it alone will not, in the long term,
be enough as a ferment or bonding agent for Europe. That is why we need
continuing political moves," h e said.
The successful launch of euro notes and coins is likely to intensify
pressure to co-ordinate economic policies more closely within the EU.
The Taoiseach accepts that the issue of tax harmonisation will remain on the
European agenda, although he believes it will not become a reality during
his political lifetime.
It is likely, however, that the present, fairly informal system of
consultation about national budgets will become firmer.
And France, with the support of the Commission, is pressing for a bigger
role for euro zone finance ministers as a counterbalance to the ECB.
Perhaps the most significant impact of the euro notes and coins will be on
public attitudes to the EU.
Like the Schengen Agreement which abolished border controls between most EU
states, the euro is a practical manifestation of the usefulness of European
integration.
It could serve as an antidote to the remoteness of the European institutions
while reassuring European citizens that they can take an important step
towards sharing responsibility without losing their national identity.
This new popular mood will influence the deliberations of a Convention on
the Future of Europe that will start meeting in March. The Convention will
present ideas to EU leaders on how to make the EU more
effective and more democratic, partly through re defining what policy areas
are best dealt with in Brussels and what should be left to national
governments.
The EU's image has suffered in recent years from the corruption allegations
that brought down Jacques Santer's Commission in 1999 and Mr Prodi's
shambling performance since then.
Although many advocates of a strong Commission would like Mr Prodi to step
down, he is almost certain to stay in office for another three years.
If the Munster MEP, Pat Cox, becomes President of the European Parliament
later this month, he will represent a fresh, articulate voice at the heart
of European politics.
Mr Cox is a profoundly ambitious politician who is determined to lift the
profile of the European Parliament, long the Cinderella of European
institutions.
Any fresh momentum behind European political integration will present
headaches for the Government, which is increasingly isolated in Europe.
Senior diplomats acknowledge that Britain's new enthusiasm for further
integration in such areas as justice and home affairs has taken the
Government by surprise.
The challenge facing Bertie Ahern and the Minister for Foreign Affairs,
Brian Cowen, is to harness the new mood created by the euro to fashion an
imaginative, reinvigorated policy towards our relationship with Europe.

Denis Staunton is European Correspondent of The Irish Times


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