THE EURO: it happened to twelve countries in Europe at the start of this year. But what does it actually mean to the people of Barry?

According to one couple, it's a great chance for the currency to be sorted out before Britain loses Stirling.

Peta and Paul Goodwin from the Vale booked a holiday to Grand Canaria. They were told they could pay for their chalet in Euros at any high street bank.

But this has proved to be more difficult than first thought. Paul, 61, a retired personnel manager said: "We've tried the bank first recommended to us, but the staff in two different branches could not figure out how to help us.

"There don't seem to be any systems set in place to help transactions between accounts."

It seems as though it will only be a matter of time before the UK takes on the euro, and while some people might not like the idea, it will be good for the business man and regular traveller.

Peta added: "I think it's better that we agreed not to go in until the problems have been highlighted and corrected. They can do the ironing, and we'll wear the party dress."

From January 1 euro notes and coins were introduced in the 12 countries which have joined the Economic and Monetary Union (EMU). These countries are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. So far, the three European Union countries that have not adopted the euro are Britain, Sweden and Denmark.

There are seven bank notes for 5, 10, 20, 50, 100, 200 and 500 euros, and eight coins, the 1 and 2 euros and 1, 2, 5, 10, 20 and 50 euro-cents. Much like our pound, one euro is worth 100 euro-cents.

All 12 countries have fixed their currencies to the euro. The date upon which each local currency will be withdrawn differs slightly. However, by the end of February only the euro will fluctuate as an international currency for these 'Eurozone' countries.

To help their customers, many banks and building societies have printed leaflets helping to explain the impact of the euro. Lloyds TSB, for example, has a booklet that explains not only which countries have taken part in adopting the euro, but how their services will be affected. It also gives advice on travelers' cheques and local currencies.

If you want to make a payment to someone in the euro zone, it is strongly advised you to start to make payments in euros instead of legacy currencies. If necessary, you will still be able to make payments in the country's old currency until the end of 2001, although foreign drafts drawn in legacy currencies are no longer available. From the start of this year payments in local currency to Eurozone countries MUST be made in euros.

Any money you receive in legacy currency can be paid into a euro, or other denominated, account. The fixed exchange rate will be used to convert legacy currencies to euros, if this is necessary.

It is very important to cash in any cheques, Traveler's Cheques and drafts drawn in legacy currencies prior to February 11, as it will cost more and take longer for us to obtain payment for them after this date.

Payments anyone now receives from the Eurozone in local currency will be denominated in euros.

If you are expecting to have regular payments and receipts in euros, or wish to hold value in euros, then you should consider opening a euro account. This will help avoid the foreign exchange costs and risks involved in using sterling accounts for these payments.

Euro notes were made available from the beginning of January. Up to then, you could still obtain legacy currency notes for use when travelling abroad. Now though, each Eurozone country will accept legacy currency notes in addition to the euro for a short time, as detailed in the table below.

Debit and credit cards can be used in Eurozone countries. The way you use your cards in these countries won't change. Your statement will show the amount you pay converted from euros to sterling, in the same way as legacy currency conversions are shown now.

As yet, it is unsure what Britain's financial position will be if or when we go into the EMU. A spokesman for Lloyds TSB said: "We are in the same position as many banks across Britain. This is possibly one of the biggest changes we have seen. But we are treating this as another currency, and will still offer our customers the services and products they need." For more information call into your bank or building society.