The Euro

4. If the UK Joins the Eurozone

If the UK joins the eurozone, there will be a transitional period. This may be shorter than many people expect. The Government's provisional plan estimates a total changeover time of 30 months from a 'yes' vote in a referendum to the introduction of euro notes and coins.

4.1 All businesses will then be affected, not just those that have dealings with the eurozone countries.

• The currency risk in dealing with the euro member countries will be eliminated.
• UK businesses will be subject to the same interest rate regime as businesses in the other eurozone countries.
• A period of dual-pricing will probably precede the changeover. All prices would have to be given in both sterling and euros.

4.2 The banks are working together to develop a code of good practice on the changeover of the currency. The likely outcome is:

• There will be no charge for converting funds in accounts.
• There will be no charge for converting small amounts of notes and coins.There is likely to be a charge for converting substantial amounts.
• The banks will not apply 'discriminatory' charges (higher than those for sterling accounts) to euro accounts.

4.3 Vending machines, coin-operated machines and cash tills will all have to be adapted or replaced to handle the euro.

• Most tills can already deal with eurocheque and credit card payments.