YET again, the Midlands has proved its business grit by being the region in the country most prepared for the introduction of the euro.

According to a survey by Lloyds TSB Commercial and consultancy company KPMG, less than 40 per cent of businesses have taken action to manage the risk associated with the new currency's introduction.

In the Midlands, however, 52 per cent of businesses said they had taken action - the highest level anywhere in the country.

The region also scored the highest for believing the euro's impact on business would be significant.

Mark Hopton, senior partner at KPMG's Birmingham office, said many companies, however, appeared to be "in denial" about the introduction of the euro, due to start in January.

He said whether or not Britain adopted the new single currency, its introduction had implications for competition, marketing, risk management and pricing policies, as well as exporting.

"Inertia is the enemy of entrepreneurship and in times of fundamental change in markets, this could prove to be a liability," said Mr Hopton.

"Preparing for the euro is not just about accounting mechanics. In the longer term, it is fundamentally about business strategy."

He said the euro was an important piece of the jigsaw if a single market was to be established across Europe.