Estland, Litouwen, Slovenië en Slowakije moeten eindsprint inzetten om invoering euro in 2007 te halen (en)
With less than a year to go before a possible decision admitting some of the new European Union members into the euro area, the practical preparations for the introduction of the single currency are well under way in Estonia, Lithuania, Slovenia and Slovakia. But the pace needs to be stepped up especially in those countries that aspire to change over to the euro in 2007. Consumer fears that certain sectors will seize the opportunity to increase prices abusively must also be properly addressed. These are the main findings of the Commission's second report on the practical preparations for the adoption of the euro in the new Member States. This report does not prejudge a future conclusion on whether any of the 10 new Member States fulfil the Maastricht convergence criteria to qualify for the euro which will be the subject of a separate report next year.
"Adequate and timely preparation and information is essential to enable the public to switch over to the euro with complete confidence. I strongly urge governments and politicians of all sides to explain the benefits of the euro and the measures needed to prepare their economies for its adoption," said Economic and Monetary Affairs Commissioner Joaquin Almunia i.
The Second Report on the Practical Preparations for the Future Enlargement of the Euro Area, adopted today by the Commission, shows that four out of the 10 countries that joined the EU in May 2004 have adopted comprehensive plans to prepare for the changeover to the euro. These countries are Estonia, Lithuania, Slovenia and Slovakia. Such plans notably cover the "cash" changeover, e.g. whether euro banknotes and coins should be introduced on the same day as the adoption of the euro (the so-called "big-bang scenario"[1]), the period of dual circulation (during which both euro and legacy cash are legal tender), the protection of consumers (dual display of prices and amounts, price monitoring, ...), the selection of the designs of the national sides of the euro coins and the timely supply of the necessary quantities of euro banknotes and coins, etc..
The appraisal of the state of practical preparations is distinct from the assessment on whether a country fulfils the "Maastricht" convergence criteria[2] laid down in the EU Treaty. The latter will be covered in the Convergence Report which the Commission will issue in 2006.
Estonia, Lithuania and Slovenia aspire to adopt the euro on 1 January 2007 and Cyprus, Latvia and Malta plan to do the same a year later, on 1 January 2008. Slovakia is aiming for 1 January 2009 while the Czech Republic and Hungary have the year 2010 in mind. Poland has no target date yet.
Although some countries are further advanced than others, the conclusion is that the practical preparations need to be stepped up. This is particularly the case for Estonia and Lithuania. Preparations in Cyprus, Latvia and Malta are also only at a preliminary stage.
Citizens need to be better informed
Whilst the preparations can benefit from the experience of the 11 EU countries which first launched the euro in 1999[3] (2002 for the notes and coins), the list of tasks to accomplish and the importance of preparing all stakeholders, in particular the citizens, should not be underestimated.
A vast majority acknowledge the benefits of the euro, for example in terms of the elimination of currency exchange fees (74%), the ability to compare prices within the euro area (70%) or when travelling (92%). But three quarters are also afraid of abusive prices during the changeover, according to a Eurobarometer survey carried out in September.
This largely echoes lingering concerns in certain euro area countries themselves. The period of unprecedented low inflation and low interest rates that followed the introduction of the euro clearly shows that prices have remained stable. But public authorities must take these fears seriously and notably plan for adequate periods of dual display of prices before and after €-day; provide for the monitoring of prices and for reporting their evolution to the public regularly (as foreseen in the Estonian and Slovakian plans); and encourage retailers to commit themselves to fair pricing, for example, by affixing `fair-pricing' stickers on their windows.
How prepared is your country?
Estonia, Lithuania, Slovenia and Slovakia are the most advanced as they have adopted their national changeover plans in the course of this year.
An analysis of the plans shows they have taken proper account of "frontloading" and "sub-frontloading" requirements (planning for banks and retailers to get cash ahead of €-day or for consumers to get euro kits). But less attention appears to have been devoted to the conversion of administrative, financial, budgetary and accounting systems in the public and private sector which constitutes the most costly (conversion of IT systems) and time-consuming part of the transition.
The urgency of the preparations is all the more important since the future entrants generally favour the "big-bang scenario".
Estonia, Lithuania and Slovenia have completed the process for the selection of the national sides of their coins. But a lot of practical preparations remain to be completed less than one year before the date at which some of these countries might receive a "green light for joining the euro area if they have met the necessary conditions..
Full report including to-do list for a successful changeover available on :
http://europa.eu.int/comm/economy_finance/publications/eurorelated_en.htm
[1] The current euro area members introduced the euro coins and notes only after a three-year transitional period that followed the scriptural adoption of the single currency (one year for Greece).
[2] Sustainable public finances, price stability, exchange-rate stability over a period of at least two years and level of long-term interest rates
[3] Joined by Greece in 2001.