Three in four companies believe EMU will have a positive affect on their business, but only one in four has begun taking steps to prepare for it, a new survey has found. The survey, carried out for Forfas, the advisory body for industrial development and science and technology, found that three-quarters of the 600 firms questioned said that EMU will have a positive effect on their business, mainly because of a stabilised currency eliminating the risks arising from currency fluctuations.

One in three firms said they have identified the key implications for their firms, but only 28 per cent have actually appointed someone to gather information and oversee the company's preparations for EMU, due to take place on January 1st, 1999. Only 18 per cent have actually performed a business impact analysis, and 16 per cent have prepared "functional work plans" for the changeover.

Asked where EMU will cause changes within their business, 73 per cent said it would happen within the accounting/finance functions, with 64 per cent saying it would also impact on their information technology functions. Almost half also envisage changes in marketing, sales and production. Just over 40 per cent cited changes in product development, production and purchasing.

The survey has also found that there is considerable uncertainty within the legal area. "Over half of those who foresee change in this function of their business are uncertain of what might be involved," it says.

Asked how well informed they felt at this time regarding the likely affect of EMU on their own company's affairs, just over three in five said they were "relatively well informed", but just one in ten said they are very well informed.

The majority of firms said the impact on their business would be good. One in ten said their transactions will be simpler and will involve less paperwork. Almost half (48 per cent) cited the sourcing and cost of supplies of goods and services as being an area of highest potential impact on their businesses, particularly for firms working in chemical, textile and other manufacturing industries.

Forfas is co-ordinating the EMU Business Awareness Campaign information effort which was introduced at the EU summit in Ireland last year. The survey found, perhaps unsurprisingly, that planning and preparation for EMU is highest among the 23 per cent of companies that have received the information pack.