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Europaudvalget 2009
KOM (2009) 0692
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COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 21.12.2009

COM(2009)692 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK THE

EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE

OF THE REGIONS

Ninth Report on the practical preparations for the future enlargement of the euro area

{SEC(2009)1703}

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK THE

EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE

OF THE REGIONS

Ninth report on the practical preparations for the future enlargement of the euro area

INTRODUCTION

Following the latest enlargement of the euro area to Slovakia on 1 January 2009, nine

European Union Member States are now bound to adopt the euro once they fulfil the criteria

prescribed by the Treaty on the functioning of the EU.

Apart from fulfilling the Maastricht criteria, the countries preparing for the introduction of the

euro have to undertake extensive practical preparations which involve all sectors of the

countries' economies, the public sector and also the public at large. Some Member States have

already fixed a national target date for the introduction of the euro, while the others do not yet

have a deadline. Estonia has chosen the nearest national changeover target date, so its

practical preparations for the introduction of the euro are currently the most intensive.

This report summarizes the progress in the practical preparations for introducing the euro in

the Member States concerned and it also provides an overview of the citizens' opinions on

some aspects of the euro in the new Member States which are not yet part of the euro area

The attached Commission Staff Working Document provides details of the practical

preparations in the form of summary tables.

2.1.

ROGRESS

STATE

OF PREPARATIONS FOR THE INTRODUCTION OF THE EURO BY MEMBER

Bulgaria

Bulgaria has not set a target date for the adoption of the euro. The practical preparations for

the introduction of the euro have not yet started.

2.2.

Czech Republic

The 'National Plan for the Introduction of the Euro' was adopted on 11 April 2007. The Plan

does not set a changeover target date. It specifies the general principles of the introduction of

the euro in the Czech Republic, lists the necessary preparatory steps and sets a timeline for

their implementation.

The two Progress Reports on the fulfilment of the 'National Euro Changeover Plan' were

approved by the Czech government on 9 April 2008 and 30 March 2009 respectively. The

latest update assesses the progress achieved in 2008 in the practical preparations for the

Countries which joined the EU in 2004 and 2007 and have not yet adopted the euro: Bulgaria, Czech

Republic, Estonia, Latvia, Lithuania, Hungary, Poland and Romania.

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changeover. In this period, the National Coordination Group for Euro Adoption worked

mainly on choosing the right methodology for the adaptation of the Czech Republic's legal

texts to the euro. Based on the detailed analysis provided by the National Coordination Group,

the Czech government decided to adopt an 'indirect' approach to prepare the necessary

adjustments of legal texts to the euro (i.e. the monetary amounts in Czech koruna would be

converted into euro by a general law on the introduction of the euro, in combination with

individual adjustment of laws where necessary). In 2008, the National Coordination Group

also elaborated the methodology for the preparations in the financial and banking sector and

drafted recommendations for the dual display of prices.

The main priorities for 2009 that are listed in the second update of the National Plan are

setting the methodology for the preparation of the public sector for the changeover and

preparing the communication strategy.

The national changeover website (www.zavedenieura.cz) displays all euro-related

government documents and the documents produced by the National Coordination Group for

Euro Adoption and its Working Groups, and publishes invitations for various euro-related

events (seminars, lectures etc.). It also explains euro-related vocabulary to the general public

and provides the phone number of a free euro-info line.

2.3.

Estonia

The Estonian government approved the first version of the 'Euro Adoption Plan' on

1 September 2005. The latest (i.e. seventh) update was adopted on 25 June 2009 with a view

to introducing a target date of 1 January 2011 for the changeover. The practical preparations

for the adoption of the euro in Estonia are coordinated by the National Changeover

Committee, which is chaired by the Secretary General of the Ministry of Finance. The

Committee has seven sub-committees, involving representatives of both the public and the

private sectors.

A comprehensive 'Act on the Introduction of the Euro' providing an overview of the

legislation to be amended with a view to adopting the euro (comprising more than 200 laws)

was prepared by the Ministry of Finance and is currently being discussed with other

Ministries. The Act provides for simple changes in the Estonian legislation (mostly the

recalculation of monetary amount in kroons into the amounts in euro), while more

comprehensive amendments of the legal texts will be made separately. The Act also lays

down the procedures for exchanging kroons for euro, removing kroons from circulation and

establishing the rules for the parallel circulation of the two currencies.

Frontloading of euro banknotes and coins to credit institutions should start 3-4 months before

€-day and sub-frontloading of commercial banks' major clients should start one month before

€-day. The objective is to spread euro cash supplies over a longer period of time and thus

ensure a smooth changeover throughout the country. Credit institutions have already prepared

the first cash forecasts for frontloading and sub-frontloading, which will be updated in the

course of further preparations. Eesti Pank (the National Bank of Estonia) plans to make

additional preparations for the storage of exceptionally high amounts of cash in its premises.

The security plans for frontloading and sub-frontloading are also being elaborated.

The period of dual circulation of kroon and euro should last for 14 days. The design of the

Estonian national sides of euro coins was selected by public vote. Since Estonia does not have

its own mint, it organised a competition for the procurement of euro coins. Based on the

results of the tender, the Estonian euro coins are to be produced by the Mint of Finland. The

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Estonian authorities plan to launch an information campaign for the general public aimed at

collecting hoarded cash before the changeover day. An exchange of kroon cash for euros at

the conversion rate and without a service fee should be available in commercial banks as from

one month before €-day until six months after €-day. Thereafter, Eesti Pank will change

unlimited amounts of kroons into euro for an unlimited period of time. The Estonian

authorities plan to produce euro coins mini-kits for citizens and bigger starter kits for retailers

in order to supply them with the euro cash needed for the days immediately following €-day.

The automatic teller machines (ATMs), which are one of the most important channels for

distributing cash, should distribute only euro banknotes within 48 hours following €-day.

According to the 'Euro Adoption Plan', the period of dual display of prices during which

citizens will have the opportunity to become accustomed to prices in euro should last six

months before and six months after €-day. The Estonian Consumer Protection Board will

regularly monitor the prices of frequently purchased goods and services and publish the

results in a newspaper with a view to providing an overview of the price trends in the

changeover period. To set an example to the private sector, the Government will always round

the euro amounts of taxes, fees, benefits and other amounts in a way which is more favourable

to citizens.

The renewed 'National Communication Strategy' was endorsed by the National Changeover

Committee on 31 August 2009. The national changeover website www.euro.eesti.ee launched

in January 2006 is under reconstruction at present. The current Partnership Agreement

between the Commission and Estonia as regards the communication on the introduction of the

euro will expire in February 2010, but the Estonian authorities have expressed a wish to

extend this agreement.

2.4.

Latvia

Although Latvia dropped the reference to a specific target date for the introduction of the euro

in the September 2007 update of the 'National Euro Changeover Plan'

, the practical

preparations for the changeover are actively continuing nevertheless.

On 24 September 2009, the government approved the '12

Report of the Euro Project Steering

Committee' on the activities carried out between 1 February 2009 and 31 July 2009. During

this period, the Cash and Payment Systems Working Group dealt with issues relating to the

membership of Latvia in the Single European Payments Area (SEPA) with a view to

developing the first version of the 'National SEPA Implementation Plan'. It also worked on a

contingency plan and started preparing the inclusion of both issues in the 'National Euro

Changeover Plan'.

The Public Awareness and Communication Working Group started updating the 'Euro

Communication Strategy' and developing the corresponding communication plan. The two

documents were discussed in the course of the twinning project with the National Bank of

Belgium. The national changeover web site (www.eiro.lv), launched in December 2008,

remains the main source of information for the general public. The information stand of the

Bank of Latvia at the celebrations of the 5

anniversary of Latvia's accession to the EU

attracted almost 10 000 visitors.

The initial target date was

1 January 2008

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2.5.

Lithuania

The 'National Changeover Plan of Lithuania' was approved by the government in September

2005 and updated in April 2007. The National Committee for the Coordination of the

Changeover was established in May 2005. The second version of the Plan does not set any

specific target date for the adoption of the euro

The third update of the 'National Changeover Plan', which is currently under preparation,

should incorporate the provisions of the 'Commission Recommendation of 10 January 2008

on measures to facilitate future changeovers to the euro'

and take into account the

recommendations of the Commission's 'Eighth report on the practical preparations for the

future enlargement of the euro area'

. The third update of the 'National Changeover Plan'

should be adopted by the government by the end of 2009.

The third update of the 'Public information and communication strategy on the adoption of the

euro in Lithuania', based on the results of the recent public opinion polls and other latest

developments, is under preparation. The national changeover website provides up-to-date

information on the euro. Under the Partnership Agreement, the Commission and the

Lithuanian authorities have further developed their cooperation and have prepared jointly a

number of communication activities, such as a euro exhibition in the city of Kaunas in

November 2009.

2.6.

Hungary

The first version of the Hungarian 'National Changeover Plan' adopted in July 2008 was

drawn up without specifying a target date for the actual changeover. The Plan is currently

being updated by seven sub-committees of the National Coordination Committee for

Changeover Preparations. The revised version of the Plan is due to be submitted to the

government for approval by the end of 2009. Various public and private sector organisations

(chambers of commerce, professional associations, consumer protection organisations,

employers and employees organisations etc.) are involved in the work of the National

Coordination Committee.

Hungary plans to adopt the euro under the 'big-bang' scenario with 1 January as €-day. The

dual circulation period should be less than one month. The dual display of prices period

should start as soon as possible after the Council decides on the irrevocably fixed exchange

rate between the euro and forint, and it should last until six months after €-day. The necessary

amendments to the national laws should be made via an 'umbrella law' supplemented by

separate amendments to individual legal texts. The principle of the continuity of contracts

shall be respected.

A large part of the 'National Changeover Plan' is devoted to consumer protection and

prevention of undue price increases in the changeover period. Businesses will be offered the

possibility to sign up to a voluntary 'fair pricing' code, which should be developed in

Lithuania planned to adopt the euro in January 2007. On 16 May 2006 the Commission concluded in its

Convergence Report that Lithuania did not fulfil all convergence criteria. As a consequence, Lithuania's

derogation was not lifted and the National Changeover Plan had to be amended.

2008/78/EC

COM (2008) 843

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cooperation with chambers of commerce, professional and interest groups and consumer

protection organisations.

Hungary intends to launch a twinning programme on practical preparations with French and

Slovak experts at the beginning of 2010. The communication campaign for the euro

introduction should provide clear and simple messages and reach all sectors of population,

including vulnerable groups.

2.7.

Poland

In May 2007, the National Bank of Poland set up the Bureau for the Integration with the Euro

Area with a view to preparing the 'Report on Full Membership of Poland in the Economic and

Monetary Union' (EMU). The Report, published in February 2009, contains an analysis of the

costs and benefits of Poland's membership in the euro area and provides recommendations for

future decisions as regards the adoption of the euro in Poland. In December 2008, the

National Bank of Poland (NBP) appointed its Plenipotentiary for the Introduction of the Euro,

who is supposed to coordinate the NBP's activities related to the ERM II entry and the

introduction of the euro.

The Government of Poland adopted the 'Roadmap for Euro Adoption' on 28 October 2008,

and in January 2009 it appointed the Government Plenipotentiary for the euro, in charge of

coordination of the practical preparations for the changeover. The Government

Plenipotentiary is responsible for issuing guidelines and recommendations for all institutions

involved in the changeover process. The Bureau of the Government Plenipotentiary was set

up in the Ministry of Finance in March 2009. Other institutions, such as the National

Coordination Committee for the Changeover, the Coordination Council, various working

committees and task groups, which are due to participate on the changeover preparations, will

be set up before the end of 2009. The Coordination Committee and the Coordination Council

will be chaired by the Government Plenipotentiary and co-chaired by the euro Plenipotentiary

of the NBP.

The 'Guidelines for the preparation of the National Changeover Plan' which are currently

under preparation will list the tasks to be accomplished with a view to introducing the euro,

set a basic timetable and specify the responsibilities of the bodies in charge of coordinating

the preparations.

Within the framework of its communication strategy on the euro, the National Bank of Poland

has been actively engaged in raising general awareness of the euro since 2001. The

'Guidelines for the preparation of the National Changeover Plan' should also include

instructions for the national communication strategy on the euro

The NBP representatives

take part in media debates and various information events for the general public and specific

target groups.

2.8.

Romania

Romania has set the year 2015 as its target date for the adoption of the euro. The practical

preparations for changeover have not started yet.

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2.9.

Sweden

In Sweden, preparations were stalled in practice by the negative outcome of the referendum of

14 September 2003. Sweden has no target date for adopting the euro and there have been no

noteworthy developments in the practical preparations for the changeover since the previous

report.

TATE OF PUBLIC OPINION IN THE

EMBER

TATES

Since 2004, the European Commission has commissioned 'Eurobarometer' surveys in the new

Member States (NMS) which have not yet adopted the euro in order to gauge citizens'

attitudes towards and knowledge about the introduction of the euro. The autumn NMS-8

survey (Flash EB n°280) is the ninth of its kind. The fieldwork for the survey was carried out

between 21 and 25 September 2009.

For the purposes of this report, the results of the latest Eurobarometer survey were mostly

compared with the results of the previous survey (in May 2009) conducted in the NMS (Flash

EB n°270) and occasionally with the spring 2008 results. It should be noted that after the

exceptional increase in support for the euro recorded in May 2009 in the context of the

booming economic and financial crisis, the results generally returned to the 2008 levels.

3.1.

Support for the euro

Between May and September 2009, the NMS-8 support for the euro and its introduction

decreased by 3pp to 49%. In Poland and Hungary it fell by 6pp (to 45%) and 4pp (to 54%)

respectively, compared to the 11pp increase recorded in May 2009. A very strong decrease

was recorded in the Czech Republic, namely -12pp between May and September 2009 (from

49% to 37%), while support has increased significantly in Latvia (+11pp, from 37% to 48%)

and in Bulgaria (+5pp, from 44% to 49%).

Some 39% of the NMS-8 citizens (as against 36% in May 2009) said that they were unhappy

about the idea of replacing their national currency with the euro; this result is comparable to

the one recorded in 2008.

3.2.

Familiarity with euro cash

As in May 2009, and in line with previous surveys, respondents were relatively familiar with

the design of euro banknotes and coins: 81% (-1pp compared to May 2009) have already seen

euro banknotes

and 76% (-2pp) have seen

euro coins.

Some 55% (no change) have already

used

banknotes,

while 49% (+1pp) have used

euro coins.

3.3.

Level of information

Overall, a majority of citizens in the NMS-8 did

not consider themselves well informed

about

the euro (59%, +2pp).

The Eurobarometer surveys always provide results for the NMS of the time. The latest survey covered

Poland, the Czech Republic, Hungary, Bulgaria, Romania, Latvia, Estonia and Lithuania. Cyprus,

Malta, Slovenia and, since 2009, Slovakia are not included anymore as they have already joined the

euro area. In total, about 8000 randomly selected citizens have been interviewed.

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In most of the countries surveyed, the share of citizens who considered themselves as

uninformed about the euro has increased since May 2009. This tendency was the most

pronounced in Romania, where, in September 2009, 6 out of 10 respondents said they were

not very well

not at all well

informed about the euro, compared to 52% who felt that way in

May 2009 (+8 pp). The level of knowledge declared by respondents increased in Latvia (+7pp

in the category 'well informed') and in Bulgaria (+6pp).

3.4.

Speed of the introduction of the euro

Compared to May 2009, the NMS-8 citizens showed growing hesitation about the

introduction of the euro. Fewer respondents wanted the euro to be introduced

as soon as

possible

(25%, -3pp) and more said that they wanted to have their currency replaced

as late as

possible

(33%, +4pp). As a consequence, the support for the euro changeover is now back to

the level of May 2008.

The Czech Republic, Hungary and Poland saw increases in the number of citizens who

wanted the changeover to happen

as late as possible

(+11, +6, +2pp, respectively). On the

other hand, slightly more Romanians (+3pp), Latvians (+1pp) and Bulgarians (+1pp) now

wanted accession to the euro area to happen

as soon as possible.

The Czech Republic had the

highest share of respondents who wanted to adopt the euro

as late as possible

(+11pp to

47%), while Romanians were the most supportive of a rapid introduction of the euro (+3pp to

43%).

3.5.

Impact of the euro on prices

Some 68% of the NMS-8 citizens (+3pp) feared that the euro

would cause price increases,

while 45% thought that one of the euro’s main advantages would be

low inflation rates.

The

proportion of citizens who believed in the long-term stabilising effect of the euro on prices

had decreased sharply since the previous survey (-10pp).

Compared to May 2009, interviewees in almost all NMS-8 were more sceptical about the

euro’s impact on prices. The increase ranged from +2pp in Poland (to 78%) to +9pp in the

Czech Republic (to 75%). The only exceptions were Latvia and Hungary, where the shares of

citizens expecting price rises decreased by -1pp (to 59%) and -5pp (to 66%) respectively.

3.6.

Positive practical consequences of the changeover to the euro

An overwhelming majority of the NMS-8 citizens agreed with several positive statements

concerning the euro's practical effects: e.g.

“it will be more convenient for those who travel to

other EU countries”

(92%, +2pp);

it will make it easier to shop in other countries that use the

euro”

(87%, no change), etc. However, as in the previous surveys, the share of citizens who

believe in the euro's ability to protect their country from crises remained low (41%, -3pp).

ROTECTION OF THE EURO AGAINST COUNTERFEITING

Concerning the protection of the euro, all countries have established the national authorities as

required by article 2 of the Regulation 2001/1338/EC; their representatives participate in the

meetings of the expert groups and they have received appropriate training in the field of the

protection of the euro against counterfeiting.