actor foreign exchange fluctuations into their profit margins, providing even greater incentive for market entry of large firms and giving small to medium sized firms the confidence to initiate a more global strategy (Tett, 1996) (Europa Quest (3), 2001). The ESCB control of monetary policy forecasts interest rates within some EMU member states to fall to historically low levels. This creates an environment for growth and expansion within the economy, stimulated by high borrowing and positive business sentiments (Martin, 1997). It is without question, the development of the EMU will have some negative implication for ‘Euroland’ firms. Most significantly, European firm will have to bear the considerable financial cost involved in making their operations ‘euro- ready’. That is, equipment and software will need to be converted, labour will require training and new procedures for dealing with the Euro need to be implemented (Europa Quest (3), 2001). The financial industry will have to undertake the greatest burden as foreign exchange, bond, equities and managed fund transactions will now all be carried out in Euros (Solomon, 1999). There are also considerable implications for contract law, as a result of the development of the EMU. Whilst, the Principle of Continuity of Contracts prevents any unilateral attempts to use the introduction of the Euro as a premise for canceling or not fulfilling contract arrangements, it is inevitable that contract would become complex with the implementation of the new currency (Europa Quest (2), 2001). Arguably, the greatest drawback of the EMU for member states, is the loss of national autonomy or rather the ability to exercise choice of monetary and fiscal policy (Antweller, 2001). Of particular consequence, is the diminishing role of national governments, who can no longer rely on fiscal or monetary policy platforms as a means of election, because they are constrained by EMU economi...
