It's one of the biggest things to hit Europe for years.

On 1 January, 12 European nations will give up their own currencies and instead they'll shop, trade and be paid in euros.

There'll be a crossover period when both the euro and the local currency are valid, but within a few weeks, it'll be farewell to the franc, goodbye to the guilder and so long to the lira.

Of course, the UK has so far decided not to join the European single currency, so it won't affect us, will it?

Caught up

Wrong. If you're going on holiday you'd better pack a calculator or you won't know how to pay for your postcards.

But more importantly, any business that has dealings with one of those dozen countries will find life very different.

R G Marshall will benefit by rounding prices up, says Marshall Ashdown

Take R G Mitchell, a Skegness company which has been making children's rides for 44 years, the sort you see at Woolworths or in the supermarket.

It turns out 1,500 machines a year, 75% of those for export. So from January, all those destined for Europe must be able to take euro coins.

All new rides are being made with new coin mechanisms, but the thousands already in use have to be altered.

A pain in Spain

Mitchell's has a Spanish subsidiary, with 500 rides around the country.

"Each one will have to be converted," says sales director Marshall Ashdown.

"That's about an hour's work for each ride plus the travelling to get to them as they're at locations all over Spain."

The company has spent about two years tackling the issue, and has discovered some potential problems.

For instance, although every euro will be worth the same, each country is minting its own coins.

Rounding up or down

The individual designs have to comply to strict regulations, but even tiny discrepancies might affect the mechanisms.

And a ride that cost five francs in France or 100 pesetas in Spain will now cost one euro everywhere.

That means some people will be paying more than they used to while others will be paying less.

"We've had to look at what the proposed prices would be if Britain joined the euro," says Marshall.

This would mean rides going up from the current 50p to the equivalent of about 60p at today's conversion rate.

All machines in the UK are being made so they can be converted to accept euros should we decide to sign up to the currency.

Euro account

As well as the mechanical work, Mitchell's has had to produce all its price lists in the new currency and open up an account to deal with companies that pay in euros.

In fact, that's the most common way British businesses will be affected by the euro.

Those that have been trading with Germany, Belgium, Ireland and the others will have to deal with only one currency instead of 12.

But companies will have to make sure they have the capability of handling the new money.

Snuggling up to Europe

Snugpak are based in West Yorkshire and make outdoor clothing and sleeping bags.

They export their products to distributors and shops throughout Europe.

They've had to set up a Euro bank account to allow their buyers to settle their bills in Euros.

"What's tricky is the fact that the exchange rate between sterling and the euro fluctuates," explains Darren Burrell, Snugpak's Export Sales Manager. "We have to be very careful not to annoy our customers by making our euro price list too high."

"The other problem is that we receive more euros from our buyers than we spend on raw materials from European suppliers. So we have to be careful when we exchange the surplus into sterling," he says.

Getting prepared

But the euro isn't a headache for everyone.

Anthony Day was at a conference a few years ago when someone made a throwaway comment about getting his staff trained in preparation for the introduction of the currency.

Since then, Anthony's company, York-based Cyber Associates, has trained 50,000 people across Europe. The material has been delivered in 13 languages - including Icelandic.

His clients have mainly been international companies, particularly hotel groups with operations in many different countries.

"It's about how it will affect them as an individual in their daily lives and also as a customer-facing employee of their company," says Anthony.

"When someone queries a bill that's in euros, wondering if they've been ripped off, they've got to have a positive and confident response."

But as the 1 January deadline approaches, Anthony has seen a drop in business - and that worries him.

"I think there's a lot of complacency," he says. "And with New Year holidays, hotels might be dealing in euros for three or four days before the banks open."

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Student Guide

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The coming of the euro has brought good news and bad news.

The good news, for companies like the York-based Cyber Associates, is that business has boomed.

Change always brings a need for training and Cyber Associates' Anthony Day has done well out of it.

For Marshall Ashdown, a director at ride-maker Mitchell's, life has been more of a challenge recently. If the rides his company makes aren't changed, no one will be able to use them in the new year.

Customers will find a mix of good and bad news.

Pricing in the new currency is tricky for some. A business that rounds up to the nearest cent - as a hundredth of a euro will be known - may gain but customers will get angry if they think they are being taken for a ride.

A business that rounds down may lose money.

These are all issues that have arisen as a result of the change.

Just think...

What sort of businesses may gain and which may lose from the change to the euro?

Who is joining the euro?

Austria, Belgium, Finland, France, Germany, Greece, Italy, Ireland, Luxembourg, The Netherlands, Portugal, Spain.

The UK, Sweden and Denmark are EU members but are not joining the euro.

The up-side

Businesses hate uncertainty.

The euro removes some uncertainty from planning and decision making.

When businesses trade with other countries in the eurozone, they don't have to change currencies so there are no fees to be paid to the bank.

As currencies change in value against each other, trading with other countries can mean that prices need to change as the home currency changes in value.

Among eurozone countries, this won't happen as they all use the euro.

They do, of course, still have to think about what is happening to the value of currencies outside the eurozone.

Businesses can have one price list for products made for eurozone countries.

As economies have to use the same interest rates, there may be more stability.

Just think...

Why is life different for a business that trades only in the eurozone compared with one that trades outside the zone?

How will a business be affected if it buys resources from outside the eurozone?

The downside

A single currency means that all countries must have the same interest rates.

This can cause problems if countries have different rates of inflation or unemployment.

Central banks use interest rates to control economic activity.

As a member of the eurozone, interest rates will be set for the whole zone so no one country can use it to help its own economy.

Have a look at Lunch Lesson 14 on interest rates to find out more.

Just think...

If inflation is high, or unemployment is rising, what will happen if the government is unable to change interest rates to try to keep things under control?

What about the customer?

Customers will be able to compare prices more easily.

Cars have been an issue for ages. Do people in the UK pay more for their cars than elsewhere?

Within the eurozone you will be able to see clearly if prices differ between countries. There will be transparency.

Businesses will be free to charge different prices in different countries but customers will be able to see what's going on.

This will make a difference for big items like cars but people are unlikely to buy their olive oil direct from Greece or their pottery direct from Spain just because of a few cents difference.

Perhaps the Internet will make a difference but people will still have to pay for delivery.

Just think...

Search the BBC website for euro stories.

Make a list of all the pros and cons. What do you think the UK should do?

You will have a vote when we have a referendum - so you should work out your point of view in advance.