When Fianna Fail's European candidate for Connacht-Ulster, Mr Noel Treacy, kicks off his election campaign in a few weeks, he intends paying for all those supporters' pints in euros - in Loughrea, Co Galway, at least, which has declared itself to be the State's first "euro town".

Announcing details of the initiative yesterday, the Minister of State for Science, Technology and Commerce, praised the town for its enthusiasm in embracing the changeover to the new currency. Although euro cash will not be circulating until January 2002, businesses are already being encouraged to adopt the currency in accounting systems.

Loughrea will become a "national test bed" or "laboratory" for the transition, Mr Treacy said at a press conference attended by business representatives. The results will be fed through the EMU Business Awareness Campaign, managed by Forfas for the Government.

Recent surveys have indicated that many large companies are ready for the euro, but small companies, mainly west of the Shannon, are less so.

The 18-month project will be directed by a manager based in Loughrea. It will be supervised by a local board, made up of members of Loughrea Chamber of Commerce and Town Commissioners, the Forfas EMU Business Awareness Campaign, the Department of Enterprise, Trade and Employment, and the Euro Changeover Board of Ireland.

An advisory group comprising representatives of the town's business sector, the local community and relevant State agencies, has also been set up to help the project meet its objectives.

Mr Treacy is "very excited" about the enterprise, which is based in his constituency. Asked if he intended to carry a euro cheque book himself shortly, he said he hoped to be "given one".