Now could be the time to buy, because the introduction of euro notes and coins could fuel a spending spree on consumer durables as cash hoarders spend their black market national currencies before they become worthless in February 2002, according to a new report.

Construction companies, luxury goods retailers and the travel industry are among those set to benefit from the arrival of euro notes and coins on January 1, 2002, the report by Swiss investment bank UBS Warburg finds.

The study builds on numerous reports suggesting that cash hoarders are likely to spend some of their holdings on physical assets because of restrictions on the exchange of large amounts of currency into euros.

France was so concerned about the damage that such restrictions could inflict on the value of the euro that it has relaxed its rules somewhat.

Even so, says UBS Warburg, banks will still have to disclose transactions if it suspects money laundering.

"This is not a small matter involving euro-12 citizens converting the change in their pockets," the report says.

The European Commission estimates that seven to 16 percent of the European economy is "informal."

That suggests that the euro-zone cash economy is worth between 500 billion and 1.1 trillion euros, according to the report.

The euro may however prove a hit in the black market.

Since 1969, the highest denomination U.S. bill has been 100 dollars, while the single European currency's highest denomination will be 500 euros.

Therefore, while one million dollars in 100 dollar bills weighs 22 pounds (10 kilos), the equivalent to two large bags of barbecue coals, the same amount in 500 euro notes would weigh only 5.2 pounds, little more than a bag of flour, according to the study.

"Consequently, criminals could more easily transport and hide large amounts of cash," it says.

Another reason why the introduction of euro notes and coins could fuel a spending boom is that the European Central Bank will be printing more money, which will raise the euro-zone money supply, AFP quoted UBS Warburg as saying.

"The Central Bank will also be anxious to ensure there is plenty of liquidity in the banking system immediately on January 1 to get euros into the hands of as many individuals and businesses as possible," it says.

"Technically, it seems reasonable to say that the ECB will be running an accommodative monetary policy."

Credit Card companies could also benefit if the concerns that the death of national currencies could lead to a cash shortage prove well-founded.

But a spending boom would be a mixed blessing for the euro-zone, trapped between a rock and a hard place with sluggish growth and high inflation.