Vijf nieuwe lidstaten willen euromunten en -biljetten snel introduceren (en)

EUOBSERVER / BRUSSELS - Five new EU members are keen to get euro notes and coins into the pockets of their citizens as soon as possible, according to a European Commission report published on Wednesday (10 November).

Cyprus, Latvia, Lithuania, Slovenia and Slovakia all favour a so-called "big bang" approach to joining the euro, meaning that they will introduce euro notes and coins at the same time as joining the single currency system.

By contrast, the 12 old member states that joined the euro joined the system in 1999, but waited three years before introducing notes and coins. Greece joined the system later and only spent 12 months preparing the changeover from Drachma to euro.

New member states will have their work cut out to prepare in time. Most old member states took six years to prepare, whereas some of the new member states want to join the euro as early as 2007.

"Preparation ... should not be underestimated or delayed if we want to ensure a wide public acceptance and a smooth transition", said Economics and Monetary Affairs Commissioner Joaquin Almunia.

Experience counts

The "big bang" method of adopting the euro is easier to achieve given that most citizens in the new member states are familiar with the euro and are likely to have used the currency on holiday in the euro zone or even in their home countries.

Many of the countries involved also have had recent experience of changing currency regimes after regaining independence.

On the other hand, certain particularities of new member states will make the changeover harder. There are generally fewer cash machines in new member states, making it harder to distribute new notes.

In addition, people tend to conduct transactions in cash, rather than using cards, which increases the relative importance of money.

Mixed views

Although governments seem keen to speed ahead with the process, a Commission survey has shown that citizens take a more mixed view.

Forty percent of people in the new member states believe that the introduction of the euro will be "positive" for them, whilst a higher percentage (45 percent) think it will be negative.

And many are concerned about the impact on prices after anecdotal evidence of large price rises in the countries that adopted the euro in 2002.

Obliged to join

All ten member states are obliged by the terms of their accession treaty to join the single currency, although less than half of the citizens know this, according to the survey.

Before joining, they must pass a series of economic hurdles, testing the stability of their currency and the state of their economies.

But the new member states have very different target dates for joining. Estonia hopes to join in mid 2006, to be followed in January 2007 by Cyprus, Lithuania and Slovenia.

Latvia, Malta and Slovakia aim to join in around 2008, Poland and the Czech Republic in 2009 and finally Hungary in 2010.

Sweden, Denmark and the UK have decided against joining the euro.

Even with the "big bang" approach, there will be a short period in which both "old currencies" and the euro will circulate.