Opinion of the Committee of the Regions on the 'Communication from the Commission on the information strategy for the euro` (98/C 251/09)

THE COMMITTEE OF THE REGIONS,

having regard to the Communication from the Commission on the information strategy for the euro ();

having regard to its decision of 12 March 1998, under the fourth paragraph of Article 198c of the Treaty establishing the European Community, to draw up an opinion on the subject and to direct Commission 6 - Employment, Economic Policy, Single Market, Industry, SMEs, - to undertake the preparatory work;

having regard to the draft opinion (CdR 45/98 rev.) adopted by Commission 6 on 6 April 1998 (rapporteur: Mrs Oldfather),

adopted the following opinion at its 23rd plenary session on 13 and 14 May 1998 (meeting of 13 May).

1. Introduction

1.1. In its Opinion on Economic and Monetary Union (September 1996) () the Committee of the Regions emphasized its support for EMU. It stated that 'a common currency is a logical adjunct to the single market and will strengthen the European economy's position in the world` (point 2.2).

1.2. Local and regional authorities have major responsibilities in terms of education and economic development. They are also the level of government closest to the citizen, and collectively local and regional government is one of the largest employers in the European Union. In view of this role, local and regional authorities need to play a pivotal role in the introduction of the euro to ensure that European citizens and the business community are well informed.

1.3. In addition to this role, there will hardly be a local and regional government service or administrative area that will not be affected by the single currency and local and regional authorities need to be actively involved in the preparation for the introduction of the euro both at national and European level.

1.4. The information strategy for the euro needs to be considered in relation to other European Commission documents which give guidance on the introduction of the single currency. In particular, this opinion will draw on the Communication from the Commission entitled 'Update on the practical aspects of the introduction of the euro` ().

1.5. In view of the complexity of the introduction of the euro, there is a greater need for integrated strategies involving all levels of government working closely with the public and private sectors. Information campaigns will play a crucial role in the development of these strategies. These campaigns must not only be targeted at the general public but they must also include key staff in local and regional government. Particular attention must be given to those staff who will be in daily contact with the public.

1.6. In view of these considerations, the Committee of the Regions welcomes the European Commission's Communication on its information strategy for the euro.

1.7. The Committee of the Regions welcomes the fact that the Communication is not only addressed to Member States and the European Parliament, but also to 'regional and local authorities, economic actors throughout the private sector and to many other groups whose activities will be touched by the arrival of the euro`. In view of their closeness to local and regional communities, regional and local authorities will be in a key position to discuss the practical implications of the euro with the private sector and other groups.

2. Comments on the European Commission's Communication on information strategy for the euro

a) Communicating the euro: objectives and roles

2.1. This section of the communication examines the effectiveness of the European Commission's communications strategy which began in early 1996 and has included actions under the Information Programme for the European Citizen (Prince). The Committee of the Regions has actively supported the Prince programme since its inception. Local and regional government has been closely involved in the programme and has often worked closely with other partners such as the financial sector to produce conferences, workshops, seminars and publications aimed at raising awareness of the issues associated with EMU and the introduction of the euro.

2.2. The initial targets of the European Commission's information strategy has been to:

- strengthen belief throughout the EU that EMU would be achieved according to the Treaty on European Union and

- raise awareness among banks, financial services providers and large companies of the need to begin early preparations for the changeover to the euro.

2.3. The communication is now suggesting new objectives for the information strategy and wishes to target its activities on the general public and small and medium sized enterprises (SMEs). It also wishes to ensure that 'there is a good understanding of EMU among political, administrative and business actors in third countries`.

2.4. The Committee of the Regions welcomes these new objectives and feels that local and regional government has a key role in working with the European institutions to ensure that these objectives are realized. The needs of citizens and SMEs are varied across the EU and local and regional authorities can help target the campaign effectively.

2.5. The Committee of the Regions notes that the importance of consumer protection is mentioned in terms of the communication strategy for the general public. The European Commission would like to introduce local 'observatories` which would be responsible for monitoring the impact of national communications actions on the euro. The Committee of the Regions would remind the European Commission that consumer protection is a function normally provided by local and regional government. The monitoring of this aspect of the introduction of the euro should be carried out by local and regional authorities rather than 'local observatories`.

2.6. The Committee of the Regions agrees with the European Commission when it states that 'preparing the population in general for the euro is not just a task for public authorities` and outlines the role of information relays, trade and professional associations, European associations, companies, banks, retailers and the providers of financial services. In view of this wide variety of organization it is important that the information strategy is properly coordinated at European, national, regional and local levels.

b) The communications challenge: roles and responsibilities

2.7. The communication outlines the roles and responsibilities of the Member States and the European Commission. The strategy also outlines partnerships with the European institutions. The Committee of the Regions feels that it has an active role to play there as it can stimulate a debate amongst local and regional government and publicize good practice.

2.8. The Committee of the Regions warmly welcomes the objectives of the European Commission in the strategy. It feels that the Commission has a key role in coordinating activity and producing materials. However, the Committee of the Regions has concerns about the limited budget given the wide objectives of the programme. This is around ECU 100 million and the European Commission is correct in saying that Member States will 'now have to become more involved in the funding of the campaigns`.

2.9. The Committee of the Regions also recognizes the central role in the information strategy that Member States will play. The information element will be an important role in the national changeover plans. These national plans are crucial because they recognize the different financial, governmental and cultural structures throughout the European Union.

c) A practical approach to communication actions

2.10. The Committee of the Regions agrees that higher levels of public interest will be stimulated following the Council of Ministers meeting in May 1998 when decisions will be made on the membership of Economic and Monetary Union. This will be an ideal opportunity to intensify the information efforts as there will be a demand for more information on the euro.

2.11. The public's need for information will be further intensified on 1 January 1999 when the euro becomes a currency in its own right and exchange rates are locked against the euro.

d) Dissemination of specific messages for the pre-ins

2.12. The Committee of the Regions would like to make some comments in the communication strategy about the Member States who are not part of the first wave of Economic and Monetary Union. In European Commission terminology, these are called the 'pre-ins`. Paragraph 4.3.2 of the communication states that those Member States which are not on the list of countries in the first wave will have to contemplate preparing specific messages for their citizens. These messages could: explain the practical consequences of the country's non-participation in the euro zone; inform the public about the ground to be made up before they can join the countries in the first wave; provide the information about the euro.

2.13. The Committee of the Regions would point out that some Member States have voluntarily decided to stay outside Economic and Monetary Union and that some of the above objectives of an information campaign from the European Commission may be inappropriate.

2.14. However it is important that the European Commission works with EU Member States outside EMU to identify information needs in the non-EMU countries. For instance, the creation of an EMU will also impact on exporters in countries outside the EU, and visitors to the euro zone will also need information. Local and regional government will have EU grants and loans paid in euros. These factors need to be taken into consideration in the construction of an information strategy for the 'pre-ins`.

e) Instruments to be used in the communication strategy

2.15. The communication outlines a wide variety of instruments to be used in the strategy. These include:

- radio and television;

- brochures;

- the Internet and CD-ROMS;

- answering services;

- conferences and seminars;

- communicating at grassroots levels (travelling exhibition and 'eurobuses`);

- pilot projects aimed at specific groups.

This provides a wide range of methods to get the message across and there are many ways in which regional and local government can be involved in the strategy.

f) The role of education in an information strategy

2.16. The Committee of the Regions stresses the role of education in the information strategy. The work of an expert group is briefly outlined in an 'update in the practical aspects of the introduction of the euro`. The expert group looking at education states:

- the education system will in fact be one of the most fruitful areas of information campaigns in terms of the impact on the general public;

- young people of school age exert a definite multiplier effect within the family circle;

- information about the euro should be contained in teaching materials and integrated into the educational process.

2.17. The expert group concentrated on the education of young people. Whilst this is welcome, the role of adult and community education, together with the vocational training aspects, will be important parts of an information strategy. The educational packages created could also be adopted to the wider population, and take into account the particular needs of the elderly.

3. The role of regional and local authorities in the information strategy

3.1. The Committee of the Regions thinks that the information strategy should give a stronger role to the local and regional authorities, especially because one of the key objectives is to reach small and medium-sized enterprises and the citizen and because the euro will have a major impact on regional and local economies and their competitiveness.

3.2. The communication of the European Commission includes 'local and regional administrations, elected officials and officials in public administration` as part of its target audience (see section 4.3 of the communication) rather than as partner in the information strategy. However, local and regional government is extremely skilled in the development of information campaigns aimed at citizens and SMEs. It is also experienced in the development of partnerships with other economic actors. This experience would be an important component in the development of an effective information strategy for the introduction of the euro.

3.3. The communication states that the changeover to the euro by national administration is 'considerably more advanced than those that are local and decentralized. This is worrying because regional and local authorities have closer and more regular contact with the citizen` (Communication paragraph 4.3). As responsibility for the introduction of the single currency lies with the European Commission, the European Monetary Institute (later the European Central Bank) and Member States, it is hardly surprising that the plans of national administrations are more advanced than those of local and regional authorities. This occurs because local and regional government activity has to be developed in relation to the national plan and European legislation. The Committee of the Regions would like to point out that local and regional government has often worked closely with national administrations in planning for the euro and these partnerships are outlined in Table One.

>TABLE>

3.4. In addition to this involvement, local and regional authorities have been involved in some innovative actions. There has been a six month experiment in the Tuscany region of Italy where euro notes and coins have been produced and can be exchanged in shops, banks and offices alongside the existing currency. Local and regional authorities, a Florentine bank and the European Commission have been involved in this project.

3.5. A number of local authority associations, and individual local and regional authorities have produced handbooks and/or checklists on the introduction of the single currency. For instance, the Finnish Association of Local Authorities has written two booklets which gives guidelines to local authorities about the introduction of the euro. The first booklet gives a macro-level view of the situation, while the second booklet provides member councils with a check list for the practical arrangements that they will need to make. The check list is being piloted in one or two municipalities and then it will be revised. The German Land of Bavaria has also produced an information brochure for municipalities in Bavaria which includes a check list. They have had consultations with local savings banks and the Deutsche Bank on the introduction of the euro. Similarly, Austrian local authorities have set up action plans for euro conversion by their administrations.

3.6. Local and regional government has also worked closely with organizations such as the Fédération des Experts Comptables Européens (FEE) in the production of material which outlines a strategic approach to the introduction of the euro.

3.7. Regional and local authorities need to develop a strategy for the introduction of the euro so that it can play a key role in the information strategy devised by the European Commission. This strategy has to be aware of the wide ranging changes to finance and IT systems, the training of key personnel, and its impact on services delivery, particularly the important education and economic development functions which are the responsibility of many local and regional authorities in the EU.

4. Conclusions

4.1. The Committee of the Regions welcomes the Communication from the European Commission on the information strategy for the introduction of the euro and feels that it is an important document in the move towards an Economic and Monetary Union.

4.2. The Committee of the Regions together with local and regional authorities feels that it has played an influential role in promoting debate on Economic and Monetary Union through the Prince programme.

4.3. The Committee of the Regions agrees with the European Commission's objectives for the information strategy and believes that the campaign should be targeted at the general public and small and medium-sized enterprises (SMEs).

4.4. Regarding the pilot projects aimed at specific population groups, the Committee of the Regions points out that local authorities are in the best position to address the vulnerable groups in society, like: elderly people, handicapped, illiterate, poor people, young people and immigrants. These groups will have considerable more difficulty in getting information about the Euro and familiarizing themselves with it. They can best be addressed by the organization closest to them: their local authority.

4.5. The Committee of the Regions underlines that local and regional authorities should be included in the information strategy as partners in their own right. This opinion outlines some of the important work done by local and regional government on the introduction of the euro.

4.6. The Committee of the Regions feels that the information campaigns need careful consideration in the countries which have not been part of the first wave of entrants and that the European Commission continues the dialogue with these Member States.

4.7. The Committee of the Regions notes with regret that little to no attention is given to the role of the press. The press have a big responsibility in informing the general public, so it seems logical to involve them and to make use of the existing channels. As representative of local and regional authorities, the Committee of the Regions in particular stresses the role of local and regional press as media very close to the people. Making use of the existing media will prove to be a very (cost-)effective way to reach the general public. It is a well known fact that local and regional media are amongst the most important sources of information of most citizens.

4.8. The Committee of the Regions would remind the European Commission of the important role that education can play in an information strategy and would urge the European Commission to take due regard of the comments on this role in 'the practical aspects of the implementation of the euro`.

4.9. The Committee of the Regions would like to work closely with other European institutions on the introduction of the euro and stimulate debate amongst local and regional authorities.

Brussels, 13 May 1998.

The Chairman of the Committee of the Regions

Manfred DAMMEYER

() COM(98) 39 final.

() OJ C 34, 3.2.1997, p. 1.

() COM(98) 61 final.