Britain faces serious consequences over its lack of preparation for the launch of the euro on January 1st, one of Prime Minister Mr Tony Blair's staunchest supporters warned in a newspaper interview today.
UK government adviser Lord Simon, a former European trade minister, told the Financial Timesthere had been a "limp effort" in preparing the public and business for the influx of single currency notes and coins in "euro-zone" countries.
Britain's government has not yet signed up to the euro but the government says it is in favour of becoming a member if the economic conditions are right, and has pledged to hold a national referendum on the issue within the next two years if its five tests of economic convergence are met.
"The paltry sums that have been spent, and the lack of profile given to the issue, are storing up problems for the future," said Mr Simon.
He added that in contrast to the 60 million pounds sterling ($85 million) spent raising public and business awareness of the Millennium Bug, as well as 380 million pounds tackling the threat to its own computers systems, the Treasury has only spent 9.9 million pounds on preparing businesses for the euro.
"The serious consequences of this limp effort will only become clear after January 1st," Mr Simon warned.
"Without the government's full-hearted, high-profile public backing for euro preparations, it's hardly surprising that many companies have still not really thought about this issue."
He added: "The government's euro policy has been described as 'prepare and decide'. We know it has not been decided, but what has been done to prepare?
"While the spin doctors squabble, the clock is ticking. The negligence on the practical question of preparations for the euro is a vulnerability in commercial terms."
AFP