German Consumer Perception of the Euro Conversion: The Effect on International Credit Management

At the beginning of year 2002, new Euro banknotes and coins became the means of currency for about 330 million people in twelve countries of the European Union. Misgivings concerning the Euro were especially prevalent in Germany. This paper utilizes an e-mail survey distributed to a sample of people in Germany in order to determine German consumer perceptions towards the Euro and the impact of the Euro conversion on international credit managers and professionals. The results show that German consumer perceptions significantly differ with respect to both consumer age and level of education. There is widespread dissatisfaction with the Euro. One can conclude that synchronized accounting standards due to the Euro conversion will enhance financial analysis for international credit managers. Hence, the conversion to the Euro should lead to significant credit enhancement.