Shaping up for the single currency

Greek banks have been the star performers on the buoyant Athens stock exchange this year, but the surge in share prices masks a shake-out, as competition intensifies in the run-up to European monetary union (Emu).

Of Greece's 42 banks, 20 have a market share of just 1% each. Consolidation is inevitable and several banks are raising money at home and abroad to position themselves for acquisitions. Only around four large banks are expected to live on after 2001 - the provisional date set for Greece's entry into Emu - along with a handful of smaller niche players.

Those that do survive can look forward to operating in what they hope will become the financial centre for the Balkan region. Upbeat proponents of the Greek "gateway" idea say Athens can be to the European Union what Los Angeles is to the US.

Traditionally...