Major Investment for Euro Conversion to Begin in 2000
Sapiens International Corporation announced the results of its second quarterly survey on the state of euro migration. The study found that 75 percent of CFOs in leading corporations within the European Monetary Union (EMU) believe companies are waiting until Y2K efforts wind down before beginning their main investment in the euro transition.
The "Euro Report Card," a telephone poll conducted at the close of the second quarter, surveyed Chief Financial Officers in leading firms in each of the 11 EMU nations and measured attitudes toward use of the euro in the second quarter after its introduction.
The percentage of companies using the euro exclusively for at least half of their transactions increased to 46 percent from 33 percent in Q1. Leading the way with the highest percentage of transactions exclusively in the new currency and the greatest gains since Q1, are Finland (67 percent up from 56 percent), France (58 percent up from 33 percent) and Germany (50 percent up from 22 percent). On the other end of the spectrum, enterprises in Spain, Ireland and Portugal are conducting less than 20 percent of these transactions.
The survey uncovered a change in the psychological commitment to the new currency. In this quarter, 48 percent of respondents, compared to 77 percent in Q1, indicated a 90 percent or higher psychological commitment to the euro.
"While there is a rise in euro usage, the survey indicates that the major investment in the euro has not yet begun," said Amir Barnea, Sapiens’ Euro Solution Manager. "The marked change in excitement from Q1 demonstrates that organizations are beginning to understand the enormity of euro migration. Coupled with Y2K projects, it can be too much for a company’s budget and IT department to handle."
Despite the change in their own psychological commitment, a vast majority of enterprise leaders still stand behind the idea of a single currency and 96 percent would recommend a shorter transition time of only six to eight months for new entrants.
The telephone poll asked CFOs the following questions:
1. What percentage of your organization’s financial transactions are currently occurring exclusively in euro? What percentages are occurring in dual currency?
2. To what extent do you agree with the following statement (1-5): "Most companies will begin their main investment in euro migration as soon as the Y2K effort winds down."
3. Do you recommend to the UK and Sweden that they join the EMU, and in what time frame would you recommend a conversion period?
4. What, in your estimation (on a scale of 1-100), is your organization’s psychological commitment to the euro?
In addition to cutting across national borders, companies surveyed included financial, manufacturing, utilities, publishing and others.
For more information, visit Sapien International Corporation’s Web site at www.sapiens.com.