The Republic's economy could suffer if Irish businesses fail to prepare for the euro, the National Competitiveness Council has warned. Council chairman Mr Brian Patterson said yesterday that businesses should act immediately to ensure their euro strategy gets up to speed on time.

"It is essential that all firms prepare fully in order to avoid serious disruption to their activities during the changeover period," said Mr Patterson. "If such disruption were widespread, this could have a negative impact on the economy as a whole." Mr Patterson also suggested that demand for IT services would outstrip supply as the year neared an end, thus creating added pressure and potential bottlenecks.

Forfβs, meanwhile, has urged Irish businesses to treat the euro's introduction as an opportunity to exploit new export and import markets. Forfβs chief executive Mr John Travers has said, however, that next January will herald the beginning of a more competitive era for Irish firms. "Irish firms must be ready to adapt with appropriate strategies to maximise their competitiveness," he said.