UK firms adopt ostrich approach to EMU

Four out of five of Europe's top companies have 'woefully inadequate' strategies in place to cope with the introduction of EMU in 1999, writes Mark Johnson.

UK companies lag behind their European competitors in recognising the effect that monetary union will have on IT systems, according to management consultancy KPMG.

Only 8% of European companies have budgeted for EMU changes. A mere 4% have completed a systems review, according to the report, Europe's Preparedness for EMU. None of the UK organisations questioned had completed systems reviews, although 44% have started their review. But only half of those questioned believe EMU will affect their systems.

KPMG Europe chairman Alan Reid said many financial directors are burying their heads in the sand, even though they believe IT will account for the biggest spend in preparing for EMU. He told companies to set up 'Euro forums' to determine how to prepare for a single currency. 'They should set out a programme timetable,' Reid said. With just two years to go until EMU, the supply of consultancy and IT expertise could become stretched.

The survey interviewed 301 companies with 5,000 or more staff.