Euro - Legal Tender in January 1999

Well, not exactly. You will be able to use your credit card or debit card or traveller's cheques to pay for goods or services in euros in Europe's Euro-zone, but the new coins and paper money will not become legal currency until July 2002, so, until then, you will be able to take pesetas or francs for "real" money transactions. Retailers in tourist areas in Paris, for instance, are reported to be showing prices in francs and beside them prices in euros. The big change will be that exchange rates between the participating countries and the Euro, and between each other, will be fixed, but not between Sterling and the Euro. American Express and Thomas Cook will both be selling Euro traveller's cheques but these will only be recognised in the eleven countries 50 far in the Euro-zone. They are France, Spain, Germany, Portugal, Italy, Austria, Belgium, Finland, Ireland, Luxembourg and the Netherlands. '[hose not in the Euro-zone are Greece, Sweden, the UK and Denmark.

Shops, cafes and restaurants throughout the Euro-zone are expecting Euro traveller's cheques to be widely used. High Street banks are setting up accounts to allow customers to save, borrow and transfer funds in euros. However, these are only of immediate interest to those who have accounts in Euro-zone countries. Euro denomination cheques drawn on UK banks will still have to be cleared in Britain owing to the lack of co-ordination of the bank clearing systems in all European countries, according to the Association of Payment Clearing Services. Despite this many UK businesses have said they want to open Euro accounts before the UK joins the single currency. Those who favour the Euro point out the advantages to be gained from a single European currency. Price transparency is the most obvious. There will, say car hire firms and airlines, be savings in not having to deal in several currencies, and travellers will also benefit in the same way. Even for us, the use of Euro traveller's cheques may result in savings on commissions charged in changing money from currency to currency.

Will they ever learn?

For may years NfCG has been campaigning for better information and closer liaison with the general insurance industry. It gives us no pleasure to record our serious disappointment with the newly issued consultation paper from the recently formed GENERAL INSURANCE STANDARDS COUNCIL

We find cause for concern in two areas:

Firstly, the structure and government of the new Council rest solely in industry hands. These days it is no longer acceptable for an industry to ignore its customers. Yes, there is lip service paid by means of an external scrutiny committee composed principally of public interest representatives with an independent Chairman; but this is simply not good enough.

Secondly - a missed opportunity. Surely those preparing this document noticed the yawning gap which exists for better information and liaison services for customers. The role of this Council could have been compellingly reinforced by recognising the urgent need for new user-friendly services for the customers it serves. But, alas, this has been ignored.

NfCG Chairman, Marie Jennings, comments: "It is a great pity that we cannot welcome this document. It is the wrong way to set about building consumer support for Self Regulation. We shall certainly respond to the document and urge NfCG members to contact us with their views." Please send your comments to Marie Jennings via the Editor, whose address is in the page "Editor's Endwords"..

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