France is preparing for the introduction of the euro notes and coins with mixed feelings as its desire to lead European integration clashes with firmly-entrenched national traditions.

In some ways, the switch to the new currency will therefore provide a tough test for French "exceptionalism," the notion that the French are somehow unique and need to preserve their identity from outside pressure, perhaps most blatantly expressed in the case of cultural issues and France's long-standing fight against domination by Hollywood's film industry.

In the years following the Second World War, France was at the heart of the intellectual push for a unified Europe, thanks to people such as Jean Monet and Robert Schumann, who are considered the architects of the European project. In the 1980s, under President François Mitterrand, France further strengthened its place at the forefront of the European Union, leading the debate in Brussels and benefiting from Jacques Delors' influential years at the helm of the European Commission.

However, France's contribution to the creation of a single currency has not been without hiccups. The French only joined European Monetary Union after a hard-fought referendum campaign in 1992, in which just 51 per cent voted in favour of the single currency project.

After the referendum, France put its weight fully behind Europe's new currency, insisting that it should play a leading role in the process. That insistence led to a confrontational episode when the French government felt Germany had broken a pledge to divide control over the euro and let France appoint the head of the European Central Bank in return for putting its headquarters in Frankfurt. In the end, a compromise was reached with the appointment of Wim Duisenburg, a Dutch central banker backed by the Germans, to head the ECB, based on an agreement that Mr Duisenberg would step down early to make way for a French representative, most likely to be Jean-Claude Trichet, the governor of the Banque de France.

France has also been influential in establishing the timetable for the euro switch as well as the degree of political control over the new currency. Dominique Strauss-Kahn, then finance minister, helped convince his counterparts that eurozone finance ministers should act as an informal policy group to form a political counterweight to the ECB.

Furthermore, the French accepted the German insistence on a two-year transition period for the euro. But as it became apparent that this was too long, French officials started voicing concerns that the great enthusiasm and public support shown for the euro when agreement was first reached in 1997 on the means of its introduction was dwindling because of the excessively long period of "virtual" euro existence. It is this lesson that has made the French authorities insist that the introduction of the notes and coins be done in as short a period as possible as of next January. The result has been a generally accepted six-week period, following French thinking on the issue.

As the switch to the euro nears, France considers that it is the best prepared among the 12 eurozone nations and has devoted much energy and resources to insuring that preparations are properly in place. As a symbol of France's readiness, the first euro coins were struck at Pessac, near Bordeaux, in June 1998. French public utilities have pioneered billing in euros, even if this has proved challenging for some customers. This spring, Electricite de France was forced to redesign the lay-out of client accounts following complaints that the euro bills were leading to confusion. The budget being prepared for 2002 is the first that will be presented in euros and the discussion in the French Parliament, which will start after the summer holidays, will be based on euro figures.

On the question of rounding, the French finance ministry has pushed for downward revisions to prevent traders and businesses from using the switch to the euro to raise prices, but there remains a genuine concern that the introduction of the new currency will lead to a small inflationary spell.

The French have also been concerned over ensuring a smooth transition for the Francophone countries in former West Africa. These countries have traditionally pegged their currencies to the franc but had trouble following the Banque de France's "franc fort" policy in the run-up to the adoption of the Stability Pact. France has the peculiar characteristic through its colonial heritage of enabling the eurozone to embrace a far-reaching geographic area, including the island of Reunion in the Indian Ocean and New Caledonia in the Pacific Ocean.

France also had to negotiate with Monaco on the introduction of the euro to replace the franc, allowing the Moneégasque authorities certain privileges in representation on the coinage.