The euro will do away with the problem of textile exporters not being able to get a toehold in European nations where the currencies are weak vis-a-vis the US dollar. For instance, exporters are finding it hard to tap France, an emerging market for polyester filament yarn fabrics, in a major way owing to the weakness of the French franc against the dollar. A single currency will mean more business in countries like France and Portugal.

"Just because the French franc is weak vis-a-vis the US dollar, trade opportunities with France are few and far between. France with a dominant Jewish population is showing a larger preference for Indian sarees andpolyester fabrics. A single European currency will remove all the problems," said DC Polyester chairman Rajanish Arora. His company exports largely to Europe.

Arora's views are supported by a few other exporters who feel that synthetic exports to France alone -- estimated at $7.8 million -- will cross the $10-million mark if the euro gains wide acceptance.

Cotton textile export promotion council executive director S Rajagopal, however, sounds a word of caution by saying that the euro's acceptance will depend on the exchange rate fluctuations. Uncertainty regarding exchange rate fluctuations may force exporters to tread on a cautious path till the euro settles down.

"It takes at least one month for exporters to really start invoicing in the euro. One month may be too short a period to judge a currency, but it could give a direction of things to come," a cotton textile exporter said.

The fact that the euro will push down the transaction cost will result in extra savings for the cash-strapped textileexporters. With the exporters starting invoicing in euro, 6-10 per cent saving in transaction costs is expected.

"Considering the fact that synthetic textile exports to European countries amount to Rs 1,500 crore, savings arising from reduced transaction costs bode well for the exporter," says OP Dhawan, advisor of Synthetic Rayon and export promotion council.

The euro will also force leading textile companies to turn to Europe for loans, depriving US of its position as the favourite fund destination.

"Fundamentals of the countries which form a part of the European Union will ensure that the euro will not falter in the future and would be on par with the US dollar," said the finance director of a leading textile firm.

There is yet another view gaining ground among textile companies that the euro can easily pave the way for an increase in joint ventures and joint marketing opportunities as it is the final piece in the jigsaw puzzle of economic integration of Europe. While forming joint ventures ordoing business, the euro will eliminate the country risk leaving Indian companies with only the risk of the prospective partner.

"The euro will facilitate closer relationship with the Indian textile sector as it removes all trade barriers. With the Indian textile industry poised for more and more European alliances, the euro will accelerate the entire process," said Collin Purvis, director of the European Man-made Fibres Association, who is currently on a tour to India.

While expectations of post-euro benefits are riding high, nagging doubts remain about the euro's ability to come up trumps against the US dollar. Fears were largely based on the general perception that European Central Bank will not be strong enough to provide a strength to the currency.