The good news is that bringing monetary systems together across Europe is forcing many companies to cut the prices of their products and services. The bad news is that the average cost of monetary union across all companies works out at a staggering £34M.

In a new study of the next corporate preoccupation, now that Y2K seems to be fully under control, KPMG says that despite the general high costs of preparation, most European companies believe that EMU is a good thing. Almost two-thirds project a positive impact on their profitability in the long run.

Quite a few expect the short-term commitment to be a challenge, however. Almost 20% think that spending in this areas will jeopardise investment elsewhere. Cited in particular is possible delay in pursuing e-business strategies.

KPMG warns that the transition period will bring pressures on organisations even if they are not based in the EMU zone. "Companies throughout the supply chain will have to think hard and take positive action to avoid seeing their profits drained through the price and wage pincers," says partner Michael Littlechild.

Meanwhile, the sun is setting on at least a part of the Y2K issue. Robin Guenier, leader of the private sector campaign group Taskforce 2000 has said that, as January ends, he will be hanging up his bug guns and moving on to pastures new.

Elliott Chase