Companies in the North may be forced to move towards pan-European pricing structures for their goods and services with the advent of the new single European currency, the lead advisory body on the euro has warned.

The Northern Ireland Euro Preparations Forum believes companies that fail to prepare in advance of the advent of the euro could leave themselves vulnerable to serious trading losses.

According to the forum, companies that currently operate different price structures across Europe should now consider how the euro is going to affect their marketing strategies.

Mr Colm McKenna, chairman of the Northern Ireland Euro Preparations Forum and head of Treasury and International at Bank of Ireland, said it was time for companies in the North to realise that the euro was now a reality.

"Companies should look at the advent of the euro in 12 European Union states as an opportunity to broaden their market base. "After all, it is going to be easier to manage on an operational level through dealing and quoting in one currency. "Streamlining invoices in the new currency can be used as a marketing tool to enhance customer relationships. "This also highlights the need to work closely with, and in many cases educate, key customers to ensure a smooth transition to the euro," Mr McKenna said.

He believes companies in the North which recognise what the euro can bring to their existing business operations will flourish. "Companies are recognising the benefit of accepting euro payments and using these to fund purchases of raw materials, either from other European companies or indeed from their existing suppliers. "This is seen as a win-win situation as businesses and customers avoid the exchange risks present when changing between different currencies," Mr McKenna added.

He said the advent of the new single European currency could give smaller firms more flexibility in getting their products to new markets.

Mr McKenna added: "It is vital for businesses to take advantage of the information and advice available through organisations such as the Euro Preparations Forum, especially as we get closer to the final changeover date of January 2002.

"The euro is a reality; it should be viewed not just as another currency but as an opportunity to do business with a new market of 300 million customers."