During this Parliament, there will almost certainly be a referendum on the euro. The political ramifications are either swingeing or minimal, depending on who you're talking to. But equally important for technology are the results. Because the financial system - whether a huge financial analysis engine at a corporation or the till at your local supermarket - is going to need upgrading. And it is not going to be like just any other currency you can use on your PC.
Our currency is not yet 30 years old; we had another of the same name that operated entirely differently until 1972. But, unlike the last time, in which the system changed overnight, there is likely to be a phase in which sterling and the euro run concurrently.
The euro is possibly unique in that it has been introduced gradually. So the Irish punt, the French franc etc no longer exist in their own right but as denominations of the euro.
In practical terms this means there are no direct translations between the pound and the Euroland sovereign currencies. Instead, through a process called triangulation, the pound translates to euros, which then translate to the target currency. If the UK enters the euro system, we will probably - although not definitely - go through a similar phase.
If that sounds confusing, then it need not be. Financial software is designed to hide the trickier side of the financials from you, so there is a reasonable chance you have been using triangulation without realising it.
All of the software sellers we spoke to - including Microsoft with its Money software, Intuit with Quicken (the two most common personal financial organisers) and Sage, which sells to more small and medium businesses than most, confirmed its products had been euro-compatible for years.
So, as long as your version is reasonably current, you'll be OK. If you're unsure, check the box for certification from BASDA - the Business and Accounting Software Developers Association - which awards kitemarks for euro compliance. All this is fine as long as your accounting system works in isolation and doesn't connect to anything else. "We spend a lot of time helping customers to understand all of the legislation and compliance issues around the euro," says Guy Letts, research and development director at Sage. These issues include the formats the banks will adopt in exporting data to accounting systems, which a lot do at the moment, and in accepting information and orders from customers.
If you have an e-commerce website that is fully euro compliant during the transitional time but your customer is still ordering in sterling, there could be a problem; sadly the answer of simply opening another bank account is a non-starter, as Philip Taylor, deputy chair of accounting system company SquareSum, points out.
"If 4m businesses with bank accounts turn round and demand another account tomorrow, the banks won't wear it - the first few will get in, but no more than that."
The impetus to change for the small trader doesn't appear to be there. Colin Charlton, director of Connect Internet Solutions, says they "simply won't contemplate it until they feel the waves lapping at their toes".
"That is the nature of the beast. If it doesn't affect sales and profits today then it's something to think about later."
Business is one thing. Other areas in which there appears to be no small amount of inertia include local government. Chris Buckham, marketing director of computer services company Sanderson, points out that entry or otherwise is a government issue.
But as there has been no government directive, the local authorities have been reluctant to move. "Nobody's done anything about council tax systems yet, and it's not going to be as simple as flicking a switch."
Ian Keeton, support manager at Lynx Financial Systems, is equally succinct. "Software developers have been reluctant to invest heavily in changing their systems in preparation for an event where the rules are unclear, and which might not happen anyway." The technology is one thing. In January 2002, the physical euro will make its debut as well. This is easy in theory but, as accounting system specialist Exchequer's managing director Eduardo Loigorri points out, it brings its own practicalities for his Irish customers.
"Shops will need to accept payments in punts and give change in euros. If the tills don't have enough compartments for the coins, that's not going to be easy." And it's not the only thing. People needing to complete self-assessment forms or accounts for business will need to ascertain exactly when to change to euro accounts completely during any transition period.
Exchequer's Loigorri sums up much of the software industry's dilemma well. "A couple of years ago we got through the Year 2000 issue without any real problem, but we really didn't do ourselves any favours. Everyone is going to assume the euro will be as easy, but it might not."
