An unusual mixture of champagne and custard pies dominated the menu at the euro's launch party. Enjoying a bubbly breakfast were the foreign ministers of Euroland - the 11 countries joining the world's newest currency. Their opponents, meanwhile, made their feelings known by flinging flans.

It was a fittingly mixed beginning for the single currency. European monetary union has prompted heated argument since it was first suggested 30 years ago. Yesterday's launch was not about to change that.

Britain, along with Denmark, Greece and Sweden, is so uncertain about the whole business that it has opted out - for the time being at least.

So does the introduction of the euro make any difference to the average Yorkshire citizen?

The answer is yes. Even taking into account the fact that the euro coins and banknotes won't be issued until 2002, the new currency will affect the local economy and our personal finances.

Alan Sidebottom, audit manager of York chartered accountancy firm Garbutt & Elliott, has been examining the impact of the euro for the last few months.

He believes ordinary people will begin to notice the difference as the currency takes hold.

"It's likely to be a gradual change as more and more businesses take on the euro as a currency which they deal with significantly," he said.

The man in the street will notice the biggest change if and when Britain chooses to join the euro. Then we would have lower interest rates, reducing savers' income and home-buyers' mortgage payments.

In theory, anyone can switch to a euro mortgage today. Mr Sidebottom counsels against such a move, however, warning that exchange rate fluctuations could scupper any savings.

For the same reason, businesses should consider how to make their goods or services more attractive in the new market.

"If people are unwilling to embrace the euro then they might find that their customers are asking for discounts to cover the exchange risk," he said.

Meanwhile, it is now easier for anyone to make a comparison between the price of goods in Britain and those abroad. If someone is interested in buying a new car, he need only convert Sterling into euros to immediately see the comparative savings across Euroland.

More immediately, Mr Sidebottom believes the introduction of the euro could affect York's tourism industry. European businesses might be reluctant to send their staff to stay in hotels that do not take the euro currency, he said.

The local tourist sector has not rushed to adopt the euro. But one business to make the effort is the Swallow Hotel on Tadcaster Road in York.

Manager John Gallery said: "I can print out a copy of a guest's invoice in euros right now."

People can settle their bill by euro travellers cheque, or in a euro credit card transaction.

"It's so we are on the ball," Mr Gallery said. "If you think about it we do business in dollars and marks - and, now the euro's up and running, we wanted to trade in that too."

The Swallow Hotel's initiative is the exception rather than the rule. Gillian Cruddas, chief executive of York Tourism Bureau, believes that once visitors start asking to pay in euros, more businesses will adapt.

"It's very difficult as it's not something that has happened before. We can't really predict how it will take off."

This 'wait and see' attitude is also being adopted by the retail sector. While Marks & Spencer has converted its tills to cope with the euro, independent traders are finding that cost prohibitive.

Nick Brown, of York department store Brown's, said: "We have looked at it closely. It would be a significant expense - tens of thousands of pounds."

That is a price he will have to pay if Tony Blair decides to take Britain into the new currency. But Mr Brown argues that the Government should offer financial compensation in such an event.

He has made immediate contingency plans for the euro, however.

"If someone rushes in with a euro cheque, and no alternative means of payment, we would do the currency conversion on a calculator and take the cheque.

"We have a euro account at the bank."

Mr Brown does not expect that to happen until the tourist season brings European visitors to York later this year.

He has also taken the decision to hold back on pricing goods in euros as well as Sterling. "I really don't see that happening this year. If there was a flood of people demanding that, then obviously we would like to react and be flexible. But at the moment we aren't going to see a great demand."

Finally, how will the new currency affect British people planning to holiday in Euroland this year?

Deborah Allison, foreign exchange customer services manager at Thomas Cook in York, said they will notice little change.

"If people are travelling abroad they need to take francs to France, pesetas to Spain, marks to Germany and so on."

The difference is that the Euroland currencies are all fixed to the euro rate. That means when the euro weakens against the pound, it's good news for anyone travelling to the 11 countries involved - and vice versa.

For the first time, British consumers can take euro travellers cheques abroad. It is expected that these will have lower costs for exchanging into local currency.

"They will be ideal for anyone travelling to several different countries in one trip," Ms Allison said. "Then you are not going to have to change your money in each country you visit."

And customers in Euroland can make electronic euro payments, by cheque or by credit card.

"Businesses there are supposed to offer dual pricing so in Holland, for example, you will see goods priced both in Dutch gilders and euros. And on till receipts the amount should be offered in euros."

The message is simple. If you do not work in the tourist industry, or in any business that trades with Europe, and you don't have a mortgage or any savings and you never travel abroad, you can ignore the euro. The rest of us had better get used to the funny money. It's here to stay.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.