DRINKERS at an historic York pub are being told it's 'euro' round - since it started accepting the new currency.

A pint of John Smith's bitter at the Blue Bell, in Fossgate, now costs 2.96 euros (or £1.85).

Landlady Sue Hardie believes the pub is the first in York to start accepting the European notes and coins.

She said: "People can use the euro all over Europe now and we don't want to turn business away.

"If you work in the tourism industry you have to be prepared to accommodate visitors."

The first euro transaction took place at the pub after a regular customer returned from a holiday in Amsterdam.

Sue, who has run the cosy Edwardian pub for 20 months with her husband, Jim, offered to accept his spare holiday money.

The till has been modified to use the currency and calculates the customer's change in pounds.

The conversion rate is checked daily to make sure customers get the correct exchange rate.

Updated: 10:36 Saturday, May 25, 2002