ONE in five people still do not understand what the euro represents, despite the single currency coming into use on January 1 next year.

The comment was made by the Conservative MEP for the Herefordshire and Worcestershire area, John Corrie, after a survey among the 12 European countries facing the new currency's introduction.

He said the survey showed that only 17 per cent knew the exact date their national currency would no longer be accepted as legal tender, which, in most cases, is February 28.

"As perhaps could be expected, women are less informed than men, while expectations of the changeover are generally divided between those who expect difficulties and those who do not," said Mr Corrie.

"Apart from fears about counterfeit and similar fraud, the chief worry is that shops will take the opportunity to raise prices. The European Commission, however, is asking the authorities in the member states to make regular checks to avoid excessive prices and prosecute when massive hikes occur."

Mr Corrie said the euro was "supposed to" make purchases easier in other countries, make it easier to compare prices, eliminate exchange costs and promote economic growth.

"It will be most interesting to watch it all happen from the sidelines," he said.

"It's a lot safer than being on the playing field. We're all suffering from a weak euro, not a strong pound. There are a lot of very unhappy people in Europe as they watch their national currencies disappear."