COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN CENTRAL BANK - Report on the preparations for the introduction of euro notes and coins

The Report on the preparations for the introduction of euro notes and coins has a threefold objective:

- to take detailed stock of the state of preparations a few months before the changeover to the euro. The length of the document is due to the complex nature of the operation and to the magnitude of its repercussions, which directly affect all consumers, public administrations and economic actors in the European Union;

- to provide the Eurogroup with a comprehensive document containing a synopsis of the state of progress of work;

- to pursue the initiative launched by the Commission, by identifying and disseminating good practices that would make a particularly useful contribution to the success of the changeover of notes and coins.

This report aims at providing in the most objective manner possible a snapshot of the state of preparations. The national officials responsible for coordinating the changeover to the euro were consulted when it was being drawn up.

1.1. What is the situation-

Businesses

Overall, preparations by large businesses are making satisfactory progress. However, SMEs, and in particular micro-businesses, are tending to underestimate the scale of the work that needs to be done and the risks associated with any delay in preparations. According to the most recent Eurobarometer Flash survey (January 2001), only 26% of SMEs say they are already prepared for the euro. Just under half of businesses still do not have an action plan for the changeover to the euro. The survey shows, however, that the degree of preparedness tends to increase with the size of the business. For example, the situation has improved in recent months for medium-sized businesses. Almost one business in three has not yet realised that 1 January 2002 is the final date for operating entirely in euros.

--> The provision of information needs to be improved, particularly for SMEs

Consumers

The Eurobarometer survey carried out in January 2001 into individuals' attitudes to the euro shows that they sometimes have a rather confused picture of the new currency. This applies not only to familiarisation with the new scale of values (most customers pay little attention to dual pricing and 80% of them have not memorised any prices in euros) but also to the actual concept of the single currency (one third of individuals believe that the euro's conversion rate against the national currencies has not been definitively fixed). Almost one person in four thinks that euro notes and coins issued in their country will be legal tender only there and have not, therefore, understood the very significance of the single currency. Similarly, one person in five does not know that the introduction of the euro will be accompanied by the withdrawal of the old national currency units. Significant progress has though been made in raising awareness of the timetable: 60% of individuals know the exact date on which euro notes and coins will be introduced (compared with 40% last December), even if they have still not properly taken on board the details (e.g. the duration of the period of dual circulation is, on average, thought to be six months).

--> The numerous information campaigns have so far had limited impact. It is still difficult to persuade the consumer to take an interest in the euro. The situation will doubtless evolve at the beginning of the second half of the year, with the early changeover of bills issued by the main utilities, of bank accounts and of non-cash (book-money) means of payment, all of which will help to immerse individuals gradually in a euro environment. However, the consumer needs to be provided with practical information and training.

Public administrations

All the participating Member States have published a euro changeover plan for public administrations and a plan detailing the scenario for the exchange of notes and coins. Most of them authorised optional use of the euro as of January 1999 (January 2001 in the case of Greece) for virtually all financial flows and for presenting financial information to the authorities. A majority of countries have also opted to switch their accounts into euros only after the end of the transitional period. The authorities need to take a large number of decisions concerning, among other things, the adaptation of the means used by the general public in their day-to-day contacts with the administration and the adjustment of converted amounts, which are generally rounded in the national monetary unit. In most cases, these decisions necessitate additional rules and regulations that are in the process of being adopted. Public administrations in Member States are beginning to make greater use of the euro for their own activities and in their relations with businesses and the public.

--> National administrations are generally ready and provide businesses and the general public with quite a broad range of euro options. Few of them have adopted a pro-active [1] approach aimed at imparting a knock-on effect to the economy as a whole.

[1] For example, by switching to the euro this year public contracts and civil servants' salaries.

Banks and financial institutions

The banking community is pursuing a very active policy of preparing for the euro that generally includes an early switchover to it in relations with their customers. The adaptation of ATMs in 2002 should be very rapid, if not immediate, in most participating Member States and, as a rule, the ATMs will dispense small-denomination notes, thereby helping to reduce the problems that traders encounter in giving change. The exchange of national notes for euro notes will be free of charge and unlimited in most participating countries during the period of dual circulation. The physical introduction of the euro naturally calls for the establishment of a European payments area. The work under way is progressing too slowly and may not be completed by next January. Non-cash cross-border payments would, therefore, still be much more expensive than domestic payments, and individuals would not understand this. The Commission notes that such a situation would run counter to the objective of ensuring that consumers and operators enjoy all the potential benefits of economic and monetary union. The Commission, in close cooperation with the ECB, is very strongly calling on operators to introduce the necessary instruments.

--> Virtually all national banking systems have decided to play a leading role in the transition to the euro by taking the initiative of switching non-cash transactions over to the new currency at the beginning of the second half of the year, thereby helping significantly to enhancing the "euro awareness" of economic actors. An urgent effort is though needed to bring about the establishment of a euro payments area. The Commission will consider using all the instruments at its disposal and will take all the steps necessary to ensure that the costs of cross-border transactions are brought more closely into line with the costs of domestic transactions on 1 January 2002.

1.2. What progress has been made in applying the Commission Recommendation of 11 October 2000-

The Commission called, among other things, for:

- the changeover in the third quarter of 2001 (unless the customer expressly requests otherwise) of bank accounts and book-money means of payment. At the time, such a measure was envisaged only by banks in Belgium and France. It is now planned in virtually all the participating Member States: there will be an early changeover for all or some banks as of July 2001 in Germany, France, Austria, Italy, Portugal, Luxembourg and Belgium, as of September in Spain, as of October in Finland and as of December in Greece. Such a measure is also planned by a number of banks in the Netherlands. Only Ireland is not expected to carry out the changeover ahead of time;

- the setting of prices in euros with equivalence in national currency units in the case of distance selling and at sales outlets where book-money payments predominate. The joint statement by representatives of consumers and representatives of traders and SMEs adopted on 2 April 2001 in Brussels provides for the euro price gradually to be displayed more prominently than the price in the national currency unit and for the fixing of psychological euro prices between September and the beginning of December 2001. this European agreement should now be put into effect at national level.

- the exchange free of charge of national notes and coins for bank customers, subject merely to a period of notice for large amounts during the period of dual circulation. This will be the case in all Member States, with the exception of Austria (which does though have a high ceiling: ATS 50 000, or EUR3 633.64) and Ireland;

- the exchange free of charge of notes and coins for non-customers during the period of dual circulation, subject to a ceiling to be set by each bank. This should be the case in all participating Member States, with the exception of Germany, where most banks do not wish to exchange notes and coins free of charge for non-customers, and the Netherlands and Austria, where a charge will generally be made for exchanges;

- the adoption of arrangements to ensure that national notes and coins can be exchanged at commercial banks for some time after the end of the period of dual circulation. All the Member States have adopted such arrangements, with the result that notes and coins can be exchanged for the most part until the end of June or the end of December (in some cases a charge is made);

- the introduction of arrangements permitting the exchange of coins at official institutions after they cease to be legal tender for long enough to allow holders of coins living abroad to return them. With the exception of Portugal, where the period is still somewhat short (end of December 2002), all the participating Member States have decided to introduce such arrangements. Exchanges will be possible at the central bank for two years in Greece, until the end of 2004 in Belgium and Luxembourg, for three years in France, for ten years in Italy and Finland, for thirty years in the Netherlands and for an unlimited period elsewhere;.

- the availability of sufficient quantities of small notes in cash dispensers or through any other suitable means from the early days of 2002. Small-denomination notes (EUR5 or EUR10) will be available in all or some of the cash dispensers in all participating Member States with the exception of Finland. The agreement concluded on 19 February 2001 between the Commission and the three European banking associations also provides for the availability of small-denomination notes for withdrawals at cash dispensers of normal amounts during the first few weeks of 2002;

- encouragement for traders to give change exclusively in euros in 2002. Appropriate recommendations have been issued to traders by public administrations and/or trade associations in all participating Member States.

1.3. Which good practices are identified in the Communication-

The exercise is different from that pursued by the Recommendation: the purpose is not to map out general policy guidelines but to identify specific tangible ideas that have been put into practice in a particular participating Member State and could be usefully copied elsewhere. The Communication can contribute to this. Some measures could be taken before 1 January 2002, and other during the period of dual circulation.

1.3.1. Ten examples of useful measures that can be taken before 1 January 2002

--> Distributing widely among small traders tools for calculating change

Large retailers are equipped with tills that can calculate the amount of change to be given, including for payments involving both euros and national currency. This will seldom be the case with small traders, for whom the lack of special equipment could seriously complicate the management of checkouts. Inexpensive calculator-type devices exist on the market, but few orders for them have so far been forthcoming. Tools of this nature are, however, essential in order to avoid queues building up in small shops and to minimise the risk of errors in giving change. There are many channels through which they could be distributed: chambers of commerce, banks, associations of retailers, public administration, etc.

--> Devising and distributing simple tools for estimating cash requirements

It is not easy for traders to estimate their frontloading and cash-flow requirements for early 2002. They must do so, however, since they will have to order the necessary notes and coins in advance. Austria, Ireland and the Netherlands are the only countries so far to have devised and distributed among traders small software packages for calculating their frontloading and cash-flow requirements.

--> With the customer's agreement, handing out kits of euro coins along with change during the last few days in December

This idea, which is being considered in particular by Dutch traders, is relatively easy to put into effect as the value of the kits will always be equivalent to a round figure in national currency (FRF 100, BEF 500, etc.). It could help to diversify the usual distribution channels and increase the amount frontloaded to consumers, thereby reducing the problems of tendering exact money and giving change in euros in the early days of 2002.

--> Allowing employers to distribute kits of euro coins as a free gift to their staff

The Belgian authorities are, for example, allowing employers to give each member of their staff a kit of euro coins (deductible by the company as a business expense). This measure is also likely to increase the volume of euro coins frontloaded to consumers.

--> Loading cash dispensers with smaller denominations of national banknotes during the final days of December

This measure is planned in Germany and the Netherlands in particular. It would make it possible to lower the value of denominations tendered in payments during the first few days of January 2002, thereby reducing the amount of change to be given in euros and alleviating the logistical constraints on traders.

--> Loading cash dispensers in advance with euro notes

Several large banks are planning to do this, in particular in Belgium and other countries where cash dispensers have four cassettes. The euro cassette would normally be activated electronically on 1 January at 00.00, thereby enabling the supply of euro notes to members of the public to begin immediately.

--> Sending specialists to explain on the spot to traders the arrangements for the changeover to the euro

This step has been taken by the Lille chamber of commerce, for example, which has appointed experts to call on all traders in turn at off-peak times to explain how the changeover will take place. Initiatives of this kind could usefully be taken throughout the euro area by chambers of commerce, chambers of trade or local authorities.

--> Writing to all businesses to remind them of their obligations

Some countries including France, Belgium and Luxembourg have written to all VAT-registered businesses to remind them of the different deadlines approaching and of the accounting and tax obligations they must meet in 2002 at the time of the changeover to the euro. This should improve the information made available to businesses, and in particular the smallest ones, and should limit any confusion.

--> Organising operations to simulate euro payments

There has been a proliferation - often on the initiative of local authorities - of such simulations, involving the issue for a very limited period of tokens or dummy notes with a "value" equivalent to the euro. These operations allow individuals to familiarise themselves with euro payments in a consumer-friendly manner.

--> Involving all local actors in euro information campaigns

Take, for example, the region of Barcelona, where the authorities in each village have called on all local economic actors to set up local groups to monitor the changeover to the euro and to coordinate information campaigns aimed at the general public and SMEs.

1.3.2. Ten examples of useful measures that can be taken after 1 January 2002

--> Postponing the starting date of the winter sales if these normally take place during the first week in January

This measure is planned in Belgium, for example, where the starting date of the sales will be postponed for two or three weeks after 3 January. It would be desirable for sales to begin either in late December or after the end of the second week in January. Traditionally, the first three days of the sales are the busiest. Dissociating the two events would avoid the disadvantage of a peak in business activity coinciding with the most difficult period for cash management.

--> Allowing national banknotes to be invalidated

Belgium has decided that bank branches will invalidate national banknotes in 2002 by perforating them, and France is studying the matter. Although this measure raises certain technical difficulties (for example, care must be taken to ensure that perforated notes are not rejected by counting machines), it should significantly reduce security and insurance problems, especially if it is accompanied by rules whereby only banks are allowed to exchange national notes at the central bank. It should probably also be backed up by an effort to inform other countries.

--> Providing standard packages for returning national coins

This will be the case for example in France. Two different options are available depending on the way bank branches operate. If they periodically accept traders' cash receipts by crediting their accounts and in return issue them each morning with a standard float in euros, it would be useful to provide traders with standard packages for returning national coins that make up a round figure in national currency. If traders receive a float in euros equivalent to the amount of national currency they deposited the previous evening, it would be useful to provide them with standard packages for returning national coins corresponding to a round figure in euros. Measures of this nature will help to ensure that coins are returned quickly.

--> Keeping in a separate place national notes and coins received at checkouts

Most large retailers plan to keep incoming cash in national currency in a separate box under the till. If the checkout assistant has national currency easily accessible and visible to customers, some customers paying in national currency might ask for their change in national currency, which would be highly counterproductive overall. It is in everyone's interest to keep dual circulation to the minimum.

--> Appointing one or more members of staff in large supermarkets and department stores specifically to answer customers' questions about the euro

All the simulations carried out demonstrate that dual circulation will result in a significant increase in the time spent in making payments at checkouts, and this could have a negative impact on turnover. To minimise queue management problems, it is necessary at the very least to ensure - as several large retailers intend to do - that all customers' questions about the euro are dealt with away from the checkouts. Combining at the same checkout the complex tasks of giving change in euros and answering questions from ill-informed customers would be asking for trouble and could result in even longer queues.

--> Placing converters at the disposal of customers

The period of dual circulation will be tricky for traders, and errors are liable to creep in. To deal swiftly with any complaints by customers, it is desirable to provide converters for their use at checkouts. European representatives of the retail trades undertook to do this in the joint statement of 2 April 2001. [2]

[2] Through chemist's shops, Belgium has distributed converters to widows and widowers, the disabled, pensioners and orphans over 66.

--> Opening some or all bank counters on 1 January 2002

Dutch banks and German savings banks and people's banks in particular plan to do this. Such a measure would facilitate the early stages of the changeover process by enabling the replacement of notes and coins to begin on day one. It would also provide reassurance to members of the public and businesses. If not enough staff were available, access to bank branches could, where necessary, be limited to traders. [3]

[3] As in the case of the Netherlands, where only traders can withdraw the notes ordered.

--> Adapting cash dispensers to euros as early as possible

In all the participating countries cash dispensers are the main source of banknotes for customers. In five countries (Belgium, Germany, Luxembourg, the Netherlands and Austria) all ATMs will distribute euros from day one, thereby creating the conditions for swift introduction of the new currency. Adapting cash dispensers quickly is an essential condition for the success of the changeover operations.

--> Extending bank opening hours

Already planned by many banks, longer opening hours during the first two weeks of January 2002 should facilitate the smooth replacement of notes and coins and limit the volume of national currency tendered in payment for purchases in shops (and so make the task of giving change less complicated).

--> Ensuring that customers withdrawing household amounts of cash at bank counters receive small-denomination notes

Planned in Belgium, Spain and Germany in particular, this measure is also part of the agreement reached on 19 February 2001 between the Commission and the three European banking associations [4]. It will be a useful accompaniment to the loading of cash dispensers with small denominations and will thus help reduce the problems of giving change in euros.

[4] The European Banking Federation, the European Association of Cooperative Banks and the European Savings Banks Group.

Lastly, information needs to be provided wherever possible on a one-to-one basis to individuals cut off from normal information flows. "Honest brokers" can help by raising awareness of the euro among the people with whom they come into contact; social workers, family doctors, individuals running retirement homes, etc. can have an important role to play in this respect. None of these specific ideas is revolutionary. However, their cumulative effect should help to "oil" the heavy and complex machinery for carrying out the currency changeover.

Report on the preparations

for the introduction

of euro notes and coins

TABLE OF CONTENTS

1. Introduction 14

2. State of progress with preparations 15

2.1. Preparations by businesses 15

2.1.1. Current progress 15

2.1.1.1. Large businesses 15

2.1.1.2. Small and medium-sized businesses 16

2.1.2. Degree of euro use 17

2.1.2.1. Euro accounting 18

2.1.2.2. Euro bank accounts 18

2.1.2.3. Euro payments 19

2.2. Preparations by financial institutions 19

2.2.1. Preparations for 2001 20

2.2.1.1. Early switchover of accounts and non-cash means of payment 20

2.2.1.2. Frontloading and subfrontloading operations 21

2.2.2. Preparations for 2002 21

2.2.2.1. Supplying consumers with euros 21

2.2.2.2. Exchange of national notes and coins for euros 22

2.3. Preparations by administrations 22

2.3.1. National administrations 22

2.3.1.1. Adaptation of the legal framework 22

2.3.1.2. Internal preparations 24

2.3.1.3. Use of the euro by public administrations 25

2.3.2. Local government 26

2.3.2.1. Adaptation of the administrative and legal framework 26

2.3.2.2. Internal preparations 26

2.3.2.3. Local euro communication activities 28

2.4. Preparations by the general public 29

2.4.1. The public's knowledge about the euro 29

2.4.1.1. Timetable for the changeover to the euro 29

2.4.1.2. Practical aspects of the euro 30

2.4.2. Familiarisation with the new scale of values 30

2.4.2.1. Consumer unfamiliarity with the euro 31

2.4.2.2. Slow start to a more active approach 31

2.4.3. Degree of euro use 32

2.4.3.1. Euro bank accounts 32

2.4.3.2. Euro payments 32

2.5. Information campaigns 34

2.5.1. The Commission's role in preparing and disseminating information on the euro 34

2.5.1.1. Exchange of information 34

2.5.1.2. Development of partnerships and direct measures 34

2.5.1.3. Implementation of specific measures 35

2.5.2. The role of the Member States in preparing and disseminating information on the euro 35

2.5.3. Eurosystem campaign concerning euro notes and coins 36

3. Work in progress and ways forward 36

3.1. Main areas of work 36

3.1.1. Action to prevent counterfeiting 37

3.1.1.1. Technical features 37

3.1.1.2. Machinery for protection 37

3.1.1.3. Coordination between EU institutions and bodies 38

3.1.1.4. Legal protection of the euro 38

3.1.1.5. Education and information 39

3.1.2. Practical preparations for the general public and assistance for sections of the population for whom access to information is difficult 39

3.1.3. Dealing with the risk of price increases 41

3.1.3.1. Encouraging the adoption of dual pricing 41

3.1.3.2. Conducting more frequent price surveys and checks in late 2001 and early 2002 41

3.1.3.3. Creating a commitment to overall price stability 41

3.1.3.4. Building on the example set by public administrations 42

3.1.3.5. Constructing a specific statistical system 42

3.1.4. Management of checkouts and queues 42

3.1.4.1. Management of checkouts 42

3.1.4.2. Measures to prevent queues growing longer 43

3.1.5. Establishment of a euro payments area 43

3.2. Twenty good practices to facilitate the final changeover to the euro 45

3.2.1. Ten examples of useful measures that can be taken before 1 January 2002 45

3.2.1.1. Distributing widely among small traders tools for calculating change 45

3.2.1.2. Devising and distributing simple tools for estimating cash requirements 45

3.2.1.3. With the customer's agreement, handing out kits of euro coins along with change during the last few days in December 46

3.2.1.4. Allowing employers to distribute kits of euro coins as a free gift to their staff 46

3.2.1.5. Loading cash dispensers with smaller denominations of national banknotes during the final days of December 46

3.2.1.6. Loading cash dispensers in advance with euro notes 46

3.2.1.7. Sending specialists to explain on the spot to traders the arrangements for the changeover to the euro 46

3.2.1.8. Writing to all businesses to remind them of their obligations 46

3.2.1.9. Organising operations to simulate euro payments 47

3.2.1.10. Involving all local actors in euro information campaigns 47

3.2.2. Ten examples of useful measures that can be taken after 1 January 2002 47

3.2.2.1. Postponing the starting date of the winter sales if these normally take place during the first week in January 47

3.2.2.2. Allowing national banknotes to be invalidated 47

3.2.2.3. Providing standard packages for returning national coins 47

3.2.2.4. Keeping in a separate place national notes and coins received at checkouts 47

3.2.2.5. Appointing one or more members of staff in large supermarkets and department stores specifically to answer customers' questions about the euro 48

3.2.2.6. Placing converters at the disposal of customers 48

3.2.2.7. Opening some or all bank counters on 1 January 2002 48

3.2.2.8. Adapting cash dispensers to euros as early as possible 48

3.2.2.9. Extending bank opening hours 48

3.2.2.10. Ensuring that customers withdrawing household amounts of cash at bank counters receive small-denomination notes 49

4. Annexes 50

4.1. State of application of the Commission Recommendation of 11 October 2000 50

4.1.1. Article 1 - Informing future users 50

4.1.2. Article 2 - Helping citizens to become accustomed to the euro 50

4.1.3. Article 3 - Encouraging economic operators to gain experience in using the euro 51

4.1.4. Article 4 - Reducing the flow of transactions to be converted into euros 52

4.1.5. Article 5 - Facilitating the transition to the euro as legal tender 52

4.2. Consolidated timetable of operations for changeover to the euro 54

4.3. "Joint statement by representatives of consumers and representatives of traders and SMEs 56

4.4. Technical questions concerning the end of the transitional period 61

4.4.1. Redenomination of capital 61

4.4.2. Filing accounts in 2002 for the year 2001 62

4.4.3. Internal accounting and historical data 63

4.5. National cash changeover plans 64

1. Introduction

In exactly 272 days Europe will face the greatest currency transformation in its history: some fifteen billion euro banknotes and fifty billion euro coins will, in the space of a few weeks, replace a broadly equivalent quantity of national notes and coins in twelve countries with a combined population of some three hundred million. Not only is the physical introduction of the euro a historic event, it also represents an unprecedented strategic, logistical and practical challenge. Businesses will have to adapt their equipment, prepare to use a new currency and make the most of the increased competition within the single market that will result from greater price transparency. Consumers will have to familiarise themselves with the euro and make the necessary effort to construct for themselves a new scale of values. Several million coin-operated machines and several hundred thousand automatic cash dispensers (ATMs) will have to be recalibrated. Thousands of lorries will have to criss-cross the euro area in order to supply the new notes and coins and collect the old ones.

The scale of this operation is spectacular: the weight of euro coins alone will be more than 239 000 tonnes, the equivalent of twenty-four Eiffel Towers. Piled one on top of the other, they would reach a height of 78 870 km, or 1.4 million times the height of the Leaning Tower of Pisa. Some 478 000 lorries would be needed to transport them all at once. Placed end to end, the banknotes would cover a distance of 1.9 million km, or five times the distance between the Earth and the Moon. And these figures need to be doubled if the withdrawal of the existing national notes and coins is included.

The logistical phase will begin in most participating countries in five months' time, with the launch of frontloading, the aim of which is to facilitate the changeover by distributing the largest possible quantity of notes and coins in advance so that payments in euros can begin smartly on 1 January 2002. In most participating countries banks will receive advance supplies of coins and/or banknotes from September. Frontloading of businesses will take place between September and December, depending on the country. Individuals will have the opportunity to buy kits containing coins in mid-December in all the participating Member States, except Greece.

At 00.00 on 1 January 2002, the national currencies will cease to exist, including as a subdivision of the euro. National notes and coins will continue to be used in most countries for a further eight weeks at the most [5], but it will no longer be possible to make payments in the old national currency units by card, cheque or transfer. Businesses will have to operate entirely in euros. ATMs will supply euros, and traders will endeavour to give change in euros, even if payment is made in the old national currency unit. [6] From the end of the first week of January, most cash transactions will normally be in euros. At the end of the second week, the process of introducing the euro will have been largely completed. During the period of dual circulation, consumers will be able to spend in shops the national notes and coins still in their possession. If they wish, they will also be able to change them for euro notes and coins free of charge at their bank, although they will generally have to give notice if they want to exchange large amounts. At the end of this period, it will still be possible in most cases to exchange banknotes at high-street banks (for a few months) [7] and then, for at least ten years [8], only at their country's central bank.

[5] Up to 28 January in the Netherlands, 9 February in Ireland, 17 February in France, and 28 February everywhere else except Germany, where the mark will cease to be legal tender on 1 January 2002 (but traders have agreed to accept it until 28 February). Some banks will impose exchange charges after the period of dual circulation.

[6] Since euro notes and coins will be legal tender, consumers will be unable to demand that traders give change in the old national currency units.

[7] Up to 30 June 2002 in France, Spain, Luxembourg and Portugal and up to 31 December in the Netherlands and Belgium; in the other countries, the banks are free to determine the deadline. Ireland has not yet taken a decision.

[8] For ten years in Finland, Italy, France and Greece, twenty years in Portugal, thirty years in the Netherlands and for an unlimited period elsewhere.

This report on preparations for the introduction of euro notes and coins sets out to review preparations by the various players in the economy, to take stock of progress on a number of major projects and to identify examples of good practice with a view to facilitating a harmonious transition to the new currency.

2. State of progress with preparations

Preparations among businesses, financial institutions, administrations and the public will be examined below. Particular attention will also be paid to information campaigns.

2.1. Preparations by businesses

Progress in preparations by businesses and in the use of the euro is still slow.

2.1.1. Current progress

Overall, large businesses have made much greater headway than SMEs in preparing for the euro.

2.1.1.1. Large businesses

Most large businesses assigned staff to the task of preparing for the euro as early as 1996 or 1997. The final transition to the euro will be the culmination of years of intensive preparation and efforts involving, in some cases, large numbers of people. A survey conducted in December 2000 on behalf of the Association for the Monetary Union of Europe and Cap Gemini Ernst & Young gives an idea of how prepared they are [9].

[9] Available at www.amue.org.

On average, almost a quarter of large businesses already use the euro for their operations and internal accounts. Almost half intend to switch over this year, while only a quarter are waiting until 1 January 2002 or beyond. The survey's findings vary considerably according to country and sector. While more than a third of large businesses in Austria (45%), Luxembourg (36%) and Finland already keep their internal accounts euros, this is still seldom encountered among firms in Ireland (16%), Italy (15%) and, above all, Portugal (9%). By sector, it is manufacturing (31%), banking (30%) and telecommunications (23%) where use of the euro for internal accounting is most marked. The motor vehicle industry is particularly well placed, European manufacturers having adopted in 1998 a joint charter on the changeover to the euro and decided in favour of a rapid transition together with incentives and back-up measures for their suppliers to switch over to the euro. These efforts have borne fruit: in addition to the manufacturers themselves, some 80% of their suppliers have changed over to the European currency.

Preparations for the final transition to the euro are generally at the top of a firm's agenda (43%), way ahead of electronic commerce. In most cases (81%), they involve adapting all IT systems, particularly in countries in which subdivisions of the national currency are not often used (e.g. Italy and Spain).

Large businesses seldom pay salaries in euros (22%), although the situation does vary considerably from one country to another: while fewer than one in ten employees are paid in euros in Italy, Greece, Finland, Ireland or Spain, the corresponding figure is one in four in Luxembourg and Portugal and as high as one in two in Belgium and the Netherlands.

Alongside their own preparations, almost one in three (29%) large businesses have provided suppliers with assistance in changing over to the euro, and one in five intend to do so this year.

Lastly, large businesses generally consider themselves to be relatively well informed of the practicalities of switching to the euro and of its consequences for tax and accounting (73%).

2.1.1.2. Small and medium-sized businesses

The degree of readiness for the euro on the part of SMEs is clearly much lower than that of large businesses. Most intend to switch their operations to the euro at the last minute and generally tend to underestimate the scale of the effort that will be necessary and the risks associated with late preparation. Their small staff often means that managers must become involved themselves, even though they have other duties linked to the day-to-day running of the business.

The smaller the business, the less prepared it is likely to be for the changeover. Micro-businesses, small traders and small craft businesses are generally ill prepared. According to the Flash Eurobarometer survey conducted in January 2001 [10], only 19% of micro-businesses have a detailed action plan and there are systematically fewer of them than other categories that have taken practical steps for the changeover. Conversely, medium-sized businesses have made appreciable progress in their preparations, with 86% of them now having planned what action to take, compared with 69% last May, and 51% having drawn up a detailed plan. Overall, only 26% of SMEs claim to be ready for the euro (against 17% in September), although 23% of them still consider that it is not yet time to make preparations (against 32% in September). Many micro-businesses (fewer than ten employees) and service firms think that they can put off making preparations, while medium-sized businesses are more aware of what needs to be done. There is very little difference between the various countries, with the exception of Germany, where SMEs seem to be much less convinced of the need to make preparations (33% of them feel they can wait). These figures reflect a worrying "wait-and-see" attitude, considering how close the various deadlines now are.

[10] Conducted on the basis of a sample of 2 828 SMEs in the euro area by EOS Gallup Europe on behalf of the Commission, January 2001. Press release of 23 February 2001. Available at www.europa.eu.int/rapid.

According to the same Flash Eurobarometer survey, only 11% of SMEs claim to be able to carry out all of their transactions in euros. The proportion is higher in Finland, Belgium, the Netherlands, Germany, Austria and Luxembourg (where it is as high as 30%) and lower in Italy, Portugal and France. Few SMEs are actually using the euro for their commercial transactions: on average, 12% of those questioned said that they systematically invoice in euros. The proportion is around 5-6% in Portugal and France, and around 19-20% in Austria, Greece and Belgium.

The proportion of SMEs claiming to be ready for the euro is much higher than that of those which are actually using it. There are several possible reasons for this gap: some businesses overestimate their degree of readiness, while others have the internal capacity to operate in euros but still do not do so with their partners (reluctance on the part of customers, suppliers, etc.). Almost half of SMEs have still not drawn up a changeover plan. This is even the case for most SMEs in Finland, Germany, France, Portugal and Greece.

Very few SMEs are actually planning how to deal with the changeover: fewer than half of the plans which do exist are detailed. Although the number of SMEs that have drawn up a plan has risen slightly (51%, against 42% last September), there has been hardly any progress in implementing them. However, about two thirds of SMEs have identified what changes will have to be made to IT systems (65%) and have appointed someone to be in charge (67%). Whereas 57% of them have already informed their staff, fewer than 40% have identified the euro's impact on a job-by-job basis (39%), assessed budget requirements (35%) or staff training needs (31%), or informed their partners of their intentions (36%). These findings give the impression of minimal readiness and of the strategic and commercial aspects (relations with suppliers and customers, repricing, allowance for greater price transparency, staff training and involvement, etc.) having been put on the back-burner. SMEs too often have a narrow view of the transition to the euro, seeing it merely as a conversion from one currency to another. The euro is regarded as a minor concern [11] and generally arouses a feeling of indifference. For example, almost two thirds of SMEs (63%) take the view that the euro will not have any impact on their competitiveness, particularly in France and Germany. This mentality among many business managers is one factor making them less sensitive to euro information campaigns. Consequently, traditional campaigns are of limited reach. Few SMEs are thus aware of the precise procedures for introducing euro notes and coins, and this is particularly worrying in the case of shopkeepers [12], who will be required to play an active role in the introduction of euro notes and coins.

[11] See in particular the qualitative study entitled "Attitude des PME européennes vis-à-vis de l'euro et de leur degré de préparation", OPTEM, January 2001.

[12] The retailers will play a key role in the introduction on the new notes and coins and in providing information to their customers. They face specific logistical problems for the adaptation of their till equipment, the labelling of their products, the storing of the cash...which very often call for a special investment.

Moreover, confusion still remains about the timetable and the "cut-off" nature of the 1 January deadline, with 7% of SMEs intending to wait until after 1 January 2002 before they systematically invoice in euros and with 12% not expecting to be "euro-compatible" (i.e. able to conduct all their business in euros) until after that date. Including those SMEs which claim that they will not be able to operate spontaneously in euros by 1 January 2002, almost one business in three has not yet realised that 1 January 2002 is the final date by which they should be able to operate entirely in euros. Businesses are particularly ill informed on this point in France, Spain, Italy, Germany, Finland and Portugal.

2.1.2. Degree of euro use

Use of the euro is increasing but remains at a low level overall. There are three indicators by which business use of the euro can be gauged, viz. the extent to which it is used in external accounting, in bank accounts and in payments. These data can be gleaned from the Commission's quarterly survey [13] among banks and national finance ministries. The figures below are for the final quarter of 2000.

[13] Quarterly review of the use of the euro. Available at http://europa.eu.int/comm/economy_finance/document/misc/eurouse_en.htm.

2.1.2.1. Euro accounting

It is difficult to tell just how many businesses have switched over to euro accounting. A firm may set prices and issue invoices in euros while continuing to keep its accounts in the national currency unit. The authorities presume that businesses submitting VAT returns in euros have switched over to euro accounting, and in this way they obtain a fairly reliable estimate. The picture is clear: leaving aside Luxembourg and Belgium, fewer than 1.5% of businesses have switched over to euro accounting. [14]

[14] According to a survey conducted by the German industrial and trade association (DIHT) among 25 000 businesses, 14% of German businesses keep their internal accounts in euros.

Heading the list in terms of the number of businesses which keep their accounts in euros is Luxembourg (21%), followed by Belgium (5.5%) and Portugal (1.2%). The figure is particularly low in Austria (0.01%) and Italy (0.29%).

There are several possible explanations for these poor results:

- very many firms are unaware that they can (legally) switch over in the course of the year and have therefore opted to make the switch on 1 January of a given year, usually 2002 [15]. However, it will be compulsory in some participating countries to publish in euros in 2002 the results for the 2001 financial year [16]. The apparent ease of opting for 1 January 2002 will in fact further complicate for businesses the obligations they face with regard to making declarations in 2002;

[15] The findings for France suggest that there was no great movement towards switching to euro accounting on 1 January 2001 (the number of businesses which keep their accounts in euros doubled but still represented only 1.5% of the total number of businesses).

[16] This is the case in Greece, Portugal and France.

- some of the software developed by one company with a very large market share [17] does not allow accounting to be switched over in the course of the year since it is unable to calculate data retrospectively;

[17] SAP software.

- repeated calls by the European Federation of Accountants for an early changeover have generally not been particularly well passed on by the national federations.

2.1.2.2. Euro bank accounts

Although it is not essential to open a euro account in order to be able to make payments in euros since these can also be made from an account denominated in national currency, the extent to which euro accounts have been opened is an interesting indicator of "euro awareness" on the part of businesses. A euro account testifies to a willingness to become genuinely operational in the European currency and can be said to denote a business's complete changeover to the euro. According to the surveys carried out by the Commission, euro accounts made up on average 3.9% of all business accounts at the end of 2000. The trend is still quite slow, including in cases where a new commercial relationship is being established: over 90% of newly opened accounts continue to be denominated in the national currency.

The results in three countries are significantly above the average: Luxembourg (10.9%), Belgium (10.8%) and France (7.1%). By contrast, the proportion of euro accounts is particularly low in the Netherlands (0.44%), Spain (0.70%), Finland and Ireland (1%). An almost identical picture emerges when newly opened accounts are examined, with Luxembourg topping the league table (36.4%), followed by Belgium (27.6%) and France (16.6%), with Ireland (0.02%), Austria (1.27%) and Spain (1.80%) propping up the rest. These considerable differences between countries may stem from a difference in the euro activity of businesses or from the existence or absence of a policy of promoting the euro on the part of the banks.

The situation is not likely to change much until the banks implement frontloading policies at the beginning of the second half of 2001 (see 2.2. Preparations by financial institutions), although some banks have already successfully launched a policy of systematic promotion of the euro among their business clients.

2.1.2.3. Euro payments

According to the Commission's quarterly survey among banks, the proportion of national payments made by businesses in euros (all origins combined) at the end of 2000 was 30% in value terms and 5.8% in volume terms, both figures up slightly on the beginning of the year (25% and 2.4% respectively). The enormous disparity between the result in volume terms and that in value terms stems essentially from the fact that large businesses have switched over to the euro to a much greater extent than SMEs. Generally, the results in volume terms provide a more reliable picture of real euro activity than those in value terms since they are less influenced by any large, one-off transactions (e.g. a merger/acquisition between two large companies).

A breakdown by country reveals some variation. As always, Luxembourg is well ahead of the pack, with euro payments accounting for 20% of all payments in volume terms. It is followed by Belgium (8.8%), Greece (7.3%), Ireland (6%) and Portugal (5.4%). Use of the euro is particularly weak in Austria (1.1%), the Netherlands (1.2%) and France (1.7%) [18]. The euro already plays a dominant role as regards payments in value terms in three countries: Spain (75%), Belgium (56%) and Luxembourg (55%).

[18] The statistics for February 2001 do, however, show an appreciable increase in euro payments in France.

Of course, the euro is used much more extensively for international transactions, in both value terms (39.7%) and volume terms (32.5%). The importance of the euro in cross-border transactions is the logical consequence of two factors:

- the fact that national currencies have been entirely eclipsed by the euro on financial markets, helping to create an environment conducive to denominating international transactions in the European currency;

- greater export activity on the part of large businesses compared with SMEs, as confirmed by the small disparity between use of the euro in volume and in value terms.

The countries in which businesses make greatest use of the euro for international payments are Spain (72% in volume terms), Portugal (43% ), Greece (40%) and Luxembourg (38.5%). Its use is still fairly limited in France (15.6%) and especially Austria (2.2%).

2.2. Preparations by financial institutions

The European banking community has put considerable technical and financial effort into contributing to the success of the transition to the euro. The preparations which financial institutions have made for 2001 generally reflect a pro-active approach which is likely to have positive effects on all economic players. The preparations for 2002 are aimed overall at creating the conditions for a rapid and consumer-friendly changeover.

2.2.1. Preparations for 2001

Alongside their strenuous efforts to inform their customers, the banks will have a key role to play on two occasions: when accounts and non-cash (book-money) means of payment are converted into euros, and during frontloading operations. Financial institutions have broadly complied with the provisions of the Commission Recommendation of 11 October 2000 (see Annex 1), whether concerning the early switchover of accounts, the cash changeover arrangements or the denominations of notes made available in ATMs.

2.2.1.1. Early switchover of accounts and non-cash means of payment

In its Recommendation of 11 October 2000, the Commission called for the switchover to the euro of bank accounts and non-cash means of payment to be brought forward to the third quarter of 2001, unless the client expressly requests otherwise. At the time, only the Belgian and French banks were planning to do this. Now, banks in almost the entire euro area will join in: there will be an early changeover for some or all banks as from July 2001 in Germany, France, Austria, Italy, Portugal, Luxembourg and Belgium, in September in Spain, in October in Finland, and in December in Greece. The official scenario in the Netherlands does not make provision for such a measure, but several large banks are likely to implement an early switchover. Irish banks do not envisage any early switchover of accounts but will carry out conversion transactions at the customer's request.

In a document dated 26 February 2001 [19], the three European banking associations [20] endorsed the principle of an early switchover of accounts with the customer's express agreement by the end of September and with tacit agreement (with one month's notice) thereafter. They also called on their members to make euro cheque books available to their customers, as from 1 July 2001 for businesses and as from 1 September 2001 for private individuals [21].

[19] "European guidelines for best practice concerning customer and nostro legacy currency account conversion" (26 February 2001). This document is a recommendation not intended to take the place of any different national scenarios. Available at www.fbe.be.

[20] The European Banking Federation, the European Association of Cooperative Banks and the European Savings Bank Group.

[21] "European guidelines for best practice concerning legacy currency cross-border cheques", 2 March 2001. Available at www.fbe.be.

For banks, an early switchover allows for a better staggering of the work to be done. The idea that there would be no difficulty in adapting technical equipment so as to enable the currency to be changed over one weekend is not generally borne out by the experience of those operators which have switched to the euro. By bringing the switchover of accounts forward, it will also be possible to avoid the difficulty of having to convert accounts and introduce the new notes and coins at the same time.

For economic operators, the switchover of accounts and non-cash means of payment will provide a major incentive to use the euro more and hence to become familiarised with the new currency. For example, 46% of non-cash payments are settled by cheque. Switching cheques over will therefore boost use of the euro significantly.

2.2.1.2. Frontloading and subfrontloading operations

By definition, the banks play a central role in injecting funds into the economy. Before 1 January 2002 they will be of pivotal importance for frontloading operations. They will receive advance supplies of notes and coins between September and December 2001 (see Annex 5, Comparative table of national cash changeover plans). According to the debit model adopted by the European Central Bank (for banknotes) and the national financial ministries (for coins), they will be debited, a third at a time, the value of notes and coins received on three dates in January 2002 (2, 23 and 30 January).

The banks will retain some of the notes and coins for their own needs and redistribute the rest to their business and corporate customers ("subfrontloading"). They are required immediately to provide the central bank with guarantees equivalent to the value of the notes and coins subdistributed and will remain legally responsible for the consequences of any misuse. The agreement concluded on 19 February 2001 between the Commission and the three European banking associations [22] stipulates that traders who are able to provide guarantees in exchange for the notes and coins they receive will not be debited at the value date before 1 January 2002.

[22] Available at www.europa.eu.int/rapid.

2.2.2. Preparations for 2002

The banks will be at the centre of the exchange operations: they will supply businesses with notes and coins and consumers with notes, and they will carry out a large proportion of the exchange transactions between national notes and coins and euro notes and coins.

2.2.2.1. Supplying consumers with euros

Banks will supply consumers with euro notes via ATMs and across the counter. [23] On the question of ATMs, an agreement was concluded on 19 February 2001 between the Commission and the three European banking associations under which banks in possession of euro notes will do their utmost to place them in ATMs immediately so as to ensure that they no longer dispense national notes. Equipment should be fully and immediately adapted in Germany, Belgium, Luxembourg and Austria. this will be almost immediate (+/- 90% on 1 January) in Greece, the Netherlands, Spain and Italy, and relatively rapid in Ireland (+/- 80% on the first day, 100% within a week). Three countries are planning to adapt their ATMs more slowly: Portugal (+/- 8% on 1 January, but 85% within a week), Finland (+/- 38% on 1 January, 65% within a week) and France (+/- 55% on 1 January, [24] +/- 85% within a week). In all cases, all ATMs should be adapted to the euro within two weeks.

[23] Consumers will be frontloaded with coins in mid-December in all participating Member States except Greece. A large proportion of notes and coins will be injected into the economy via businesses (themselves frontloaded between September and December, depending on the Member State). Frontloading of the general public with notes was ruled out by the ECB and the Council at the informal Ecofin Council in Versailles. However, the European federations have continued their work and generally come to the conclusion that this would be a useful step.

[24] However, the Bank Card Group estimates that 85% of ATMs will have been adapted by day one.

Withdrawals or exchanges across the counter are another important means of supplying consumers with cash. In order to reduce the problems which traders will have in giving change, the banks in Belgium, Spain and Germany are planning to use small denominations for withdrawals of normal amounts. This aspect is also covered by the agreement of 19 February 2001 between the Commission and the three European banking associations.

Finally, small-denomination notes (EUR5 or EUR10) will be placed in some or all ATMs in all participating countries except Finland. In Ireland most social security benefits are paid out in cash each week in post offices. During the first week of January, payments exceeding EUR20 will generally be made up of at least four EUR5 notes.

2.2.2.2. Exchange of national notes and coins for euros

Banks will generally exchange notes and coins for their customers free of charge, although the latter will have to give notice if they wish to exchange large amounts during the period of dual circulation. This will be the case in all participating countries except Austria (which will nevertheless apply a high ceiling of ATS 50 000, or EUR3 633.64) and Ireland.

Banks will also exchange notes and coins free of charge for non-customers during the period of dual circulation, although they will often be able to fix their own upper limit. This will be the case throughout the euro area except Germany, where most banks do not wish to offer this service to non-customers, and the Netherlands and Austria, where a charge will be made.

Lastly, all participating countries have adopted arrangements allowing notes and coins to be exchanged at commercial banks for some time after the period of dual circulation, usually up to the end of June or December.

2.3. Preparations by administrations

The European institutions switched over all their activities (budgets, salaries, etc.) to the euro on 1 January 1999. For the participating Member States, a distinction should be drawn between national and local administrations.

2.3.1. National administrations

In the last few years several national legislative measures and most decisions relating to the changeover have been taken. With the publication of the cash changeover plan for Italy, all euro-area Member States now have a published document setting out arrangements for the cash changeover (see Annex 4 for details on the various phases of the changeover arrangements for each of the euro area Member States). The issues of general interest include the main legislative measures concerning the changeover to the euro, the adjustment of equipment that the public uses in its day-to-day contacts with the administrations, the smoothing to convenient numbers of converted currency amounts and the level of use of the euro in the public administration.

2.3.1.1. Adaptation of the legal framework

In Belgium the government approved the final version of the "Belgian scenario for the changeover to euro-cash" on 2 February 2001. In addition, three laws relating to the euro were published at the end of July 2000. These deal with the smoothing of public amounts converted into euros, the decimalization necessary for the introduction of the euro in public-sector computer software and the price indications on measurement devices. At the end of August twenty-four royal decrees implementing these laws were published. In November 2000 a "global scenario for the pro-active and final scriptural transition" was adopted. Thus, the changeover of legislation to the euro has been largely accomplished. Further elaboration of legislation continues for all departments concerned as far as the language communities and regions are concerned.

In Germany legislation on the so-called "smoothing of signal amounts" is advancing swiftly. More than a dozen comprehensive laws (Artikelgesetze) were passed by the Federal Government - some of them have already been adopted by Parliament and published in the Federal Gazette. The most prominent is the Law on the conversion and smoothing of euro amounts in tax laws (Steuer-Euroglättungsgesetz) of 19 December 2000. The sixteen Länder are also finalising their legislation. Their activity extends, on the one hand, to comprehensive laws in some Länder and, on the other, to specific legislation in special fields (Einzelgesetze) in other Länder. The Conference of the sixteen Länder Ministers of the Interior also adopted a general approach towards security questions related to the introduction of euro banknotes and coins. It will now be implemented in the Länder and at local level, ensuring close cooperation between the local police, central bank branches (Landeszentralbanken), credit institutions, retailers and cash-in-transit companies.

Greece adopted in September 2000 a basic law for the introduction of the euro, which regulates, among other things, conversion and smoothing, share capital, dual display, provisions for the capital market and conversion of penalties. In particular, three legislative texts were issued: a joint decree by the Ministry of Finance and the Ministry of Development on the dual display of prices; a circular of the Ministry of Development setting up the euro observatory; and a circular of the Ministry of Finance regulating taxation issues during the transitional period. The redenomination of Greek government securities into euros was completed within the time frame set by the conversion-weekend timetable involving the Ministry of Finance, the Bank of Greece, the banks and other financial institutions. The Ministry of Finance issued a circular on customs issues related to the euro and the Ministry of Development another on the conversion of share capital into euros. A cash changeover plan was approved by the national coordination committee in December 2000.

Spain is preparing legislation amending Law 46/1998. It will fix the period of dual circulation at two months and provide for the exchange of peseta banknotes and coins free of charge up to the end of June 2002 at commercial banks and for an unlimited period at the Bank of Spain.

France introduced legislation on smoothing in June (Law 517/2000) and September 2000 (Order 916/2000). About 600 thresholds and amounts, mostly in the tax field, were converted to euros. Four decrees were published in February on the conversion and smoothing of about 200 euro amounts in texts relating to taxation, finance, insurance, tariffs and duties, consumer protection and savings. In recent weeks several decrees concerning the setting of administrative thresholds have been published.

Ireland published on 5 February 2001 the Euro Changeover (Amounts) Bill 2001, which deals with the changeover, where necessary, of money amounts specified in legislation to convenient amounts in euros as of 1 January 2001. The Social Welfare Act 2001, which deals inter alia with the changeover of money amounts in the Social Welfare Code to convenient amounts in euros, and the Finance Act 2001, which does the same for the Tax Code, were both recently enacted. An order to withdraw legal tender status from Irish notes and coins on 9 February 2002 has been laid in draft form before the Irish Parliament.

Italy adopted a budget law containing the main measures for the introduction of the euro (Law 388 of 23 December 2000, Art. 155). Among other issues, it sets the end-date for legal tender of the lira and regulates technical aspects for the withdrawal of lira coins. Some indications on smoothing of amounts in the public administration are contained in the cash changeover plan. They refer to charges, fines and tax returns.

In Luxembourg the government approved in early October 2000 a draft law with a view to adapting 250 converted currency amounts of a legislative nature and 600 amounts in the administrative field. The draft law includes measures for smoothing fines, other administrative charges, social security and tax amounts, historical amounts laid down in other laws, stamp duty, thresholds, customs and duties.

In the Netherlands the government adopted the cash changeover plan on 8 December 1998. The bill for the conversion of legislative amounts from guilders to euros is currently before Parliament for approval. Neutral conversion of legislative amounts is the basic principle. Furthermore, the draft currency law, under which the guilder will cease to be legal tender on 28 January 2002 (00.00), is also before Parliament for approval. Lastly, legislation enabling the non-cash collection of parking fees by municipalities will soon be adopted.

In Austria the updated changeover plan, "The euro changeover in the public sector", covers legal and regulatory aspects of the euro and contains a short overview of the preparations in the Member States, detailed information about the cash changeover, and information about the changeover of accounting, taxes and electronic applications in the government sector. Various laws were amended in order to comply with EU regulations. As for specific legislation, the Eurogesetz (Federal Law Gazette I, No 72/2000) lays down rules for the period of dual circulation. The measures relating to the dual display of prices are regulated by the Euro-Währungsangabengesetz (Federal Law Gazette I, No 110/1999), while those relating to the changeover of long-term contracts and agreements are regulated by the Euro-Justiz-Begleitggesetz (Federal Law Gazette I, No 125/1998).

In Portugal the government approved on 16 November 2000 the cash changeover plan. It provides for frontloading of euro coins and banknotes to financial institutions and frontloading of retailers and the general public. It also states that open-ended contracts concluded by the public administration or fixed-term contracts due to expire after 1 January 2002 should be in euros. Government departments are working on the final preparations concerning smoothing and conversion of historical data. The Ministry of Finance approved the final version of the changeover plan for financial administration on 7 February 2001. On 15 March 2001 the government approved two laws. The first law sets the period of dual circulation at two months, provides for the exchange of escudo banknotes and coins free of charge up to the end of June 2002 at commercial banks and for twenty years at the Banco de Portugal, it being assumed that silence means positive agreement by bank customers in order to cover the commercial banks' initiatives in carrying out early conversion of bank accounts after October 2001. The second law regulates the dual display of prices, which is mandatory during the period from 1 October 2001 to 28 February 2002.

In Finland the cash changeover plan was published in October 2000 and includes the central parts of the public sector's changeover plans.

2.3.1.2. Internal preparations

As regards the technical preparations of the administration, 20-30% of the work required to adapt electronic applications in the government sector has been completed in France and Austria. In addition, the government in France has given absolute priority to the conversion to the euro of public administration computer systems over all other public administration computer system projects between mid-2001 and March 2002. About 40% of the work needed to convert IT systems has been completed. As of the beginning of the year, 10% of the software adapted to the euro is effectively being used. In Ireland government departments report that IT preparations are on target.

Member States have also taken several measures to ensure a proper training scheme for civil servants as recommended by the Commission. In Greece a workshop for public-sector employees was organised within the operational programme Kleisthenis. In France an interministerial plan is being implemented for the training of all members of the civil service up to the end of 2001. In Portugal several training measures are still being carried out within governmental and other entities and over 1 000 copies of a handbook "The euro in public administration" have been distributed. This 60-page document covers legal and regulatory aspects of the euro and the impact of the euro on information systems, accounting, taxes and statistics. An international conference was held in Lisbon in November and devoted to "The euro in central and local public administration: Good practices". Information sessions for all 308 municipalities in the country are currently being prepared. In Finland the Ministry of Finance held a workshop on euro preparations on 13 December. Some 300 civil servants attended, including members of all central government accounting agencies. In Ireland a train-the-trainers pack on the euro is being used in training courses by government departments and agencies to inform staff about the euro.

2.3.1.3. Use of the euro by public administrations

Other national initiatives are concerned with use of the euro in relations between the public administration, its employees, businesses and the public. Suggestions for such changes were contained in the Commission Recommendation of October 2000.

In Greece public utilities apply dual display of prices on the final amount of their bills. The Finance Ministry is conducting pilot schemes for the dual display of salaries and pensions. Since 1 January 2001 all Greek government securities in book entry form have been expressed, issued and transacted in euros. The budget for 2001 is expressed in drachmas and in euros. In France all new government contracts have been signed in euros since 1 July 2000. Local authorities were invited to do the same with effect from January 2001. All civil servants will be paid in euros from July 2001; together with their usual pay slip incorporating dual display of the total to be paid, they will receive a detailed pay slip in euros for information. The euro task force for the changeover to euros has published two new practical guides, one for hospitals and one for the social housing sector, and will prepare a third guide for mayors. In Luxembourg all ministries and public administrations have been recommended to use the euro for public procurement purposes. In addition, pay slips show the total amount both in national currency and in euros.

In the Netherlands public-sector contracts will in principle be signed in guilders until 31 December 2001, although the public administration is advised to use the euro in public procurement contracts extending beyond 1 January 2002. In Portugal public administrations and local authorities should start paying civil servants in euros as early as possible in 2001. All new government legislation has been expressed in euros since December 2000. In Ireland tax cards for income taxation at source in 2001 were delivered to all taxpayers in both currency units. Government departments will convert their payroll systems to euros on a department-by-department basis from around the middle of the second quarter to the end of the year. Civil service staff will, following this conversion, receive their pay slips in euros, with the net amount (only) being shown in both Irish pounds and euros; in general, the actual payment will probably remain in Irish pounds until January 2002. In Italy, public sector wages and pensions will be calculated in lira until the end of 2001, but the beneficiaries can ask to be paid in euro. In order to familiarise government employees with the new currency, pay and pension slips will display amounts in euro in the second half of 2001, giving a lira equivalent for the final amount only.

2.3.2. Local government

2.3.2.1. Adaptation of the administrative and legal framework

In Germany the sixteen Länder have adopted the local legislation necessary for euro conversions and for rounding amounts in euros. The heads of the euro task forces in the Länder meet frequently to examine questions of general interest raised at regular consultations with the euro task force at the Federal Finance Ministry. Detailed guides have been distributed to the municipalities. In Austria the provinces are putting the final touches to the legal texts that are to be adopted by the summer of 2001. The Austrian euro task force is making preparation of the local authorities a priority for the first half of 2001. Those responsible for monitoring the euro at the Finance Ministry have planned a series of technical meetings on the ground with elected representatives and local officials in 2001.

In France the Finance and Interior Ministries have sent the 36 559 municipalities full instructions on how to convert public contracts and on how public enterprises should apply the euro. A model decision on the conversion of public utility charges - prepared on the basis of studies in one city - has been distributed to all the municipalities as an example of best practice. After the March 2001 municipal elections, the new or re-elected mayors are being sent booklets welcoming them to office and reminding them of the landmark dates and practical preparations for the changeover to the euro. In each department, the prefects have to mention the level of local preparation for the euro in their quarterly reports.

In the Netherlands the Finance Ministry monitors preparation by the 502 municipalities very closely. A private company that was selected after a call for tenders evaluates the stage reached in each municipality's preparations. The Finance Ministry regularly sends out an official questionnaire. The replies must be signed by the mayor or his finance deputy in order to ensure that he is well informed of the work of the euro coordinator for the town or city concerned. The Finance Ministry regularly hosts meetings of a group for the examination of best practice ("Lego") consisting of 25 heads of euro task forces in the most dynamic towns and cities. Parliament is sent an official report every six months that places the latter in order of their level of preparation.

The Federation of Spanish Municipalities and Provinces directs the municipalities' technical preparations on the ground, in conjunction with the provinces and Autonomous Communities. In Belgium, after coordination at federal level, each regional authority issues a circular setting out the guidelines to be followed by the municipal authorities in switching to the euro and the corresponding technical instructions. In Ireland the local authorities are each responsible for their own changeover and the Finance Officer of each county council has been given responsibility for the changeover preparations.

On the whole, local government is well on track to adapting its administrative and legal framework to the euro.

2.3.2.2. Internal preparations

The constraints of switching to the euro may encourage local authorities to improve governance by modernising financial management, training, IT systems and the operation of automatic machines. Most of the large local authorities' euro changeover plans are well advanced. For smaller local authorities, the situation is patchier and local support measures are often needed. Technical preparation for the changeover to the euro provides an opportunity to examine all services and to modernise administration.

Local government went some way towards adapting IT systems to the euro in the run-up to the year 2000. However, many companies will need to act throughout 2001 owing to the complexity and number of software packages used. In Bonn 80% of IT applications are in the process of being adapted to the euro. In France central government has held several meetings of IT companies specialising in local applications to review progress in adapting to the euro. Most Dutch towns have adapted their printers so as to allow dual display on administrative documents. In Belgium the guidelines for the final stage of the changeover by local authorities to the euro stipulate that IT applications (wages, taxes, invoicing) must be installed by 31 October 2001 so as to be operational for the exchange of data on 1 January 2002. The period set aside for testing IT programmes is often shorter than planned, and this may give rise to difficulties. Special brochures were published at the end of 2000 for IT specialists and accountants.

Unnecessary forms have, in many cases, been scrapped as a result of the work of the euro task forces. The legibility of administrative documents is sometimes improved when they are examined for their compatibility with the euro.

Orders for the modification of local government equipment are well advanced in the euro area. The adaptation of automatic machines may also bring about improvements in local management. For example, the city of Bonn's early negotiation with the Post Office in order to convert franking machines to the euro has produced substantial savings, and the adaptation of time-clocks to the euro will lead to the wider use of smart cards and to an improvement in security by reducing the number of coin-operated parking meters.

The training of local officials in the use of the euro is very important not only for internal management but, above all, for the quality of contacts across the counter with the public from 1 January 2002. A variety of methods are used. Many local authorities have included euro training for their officials in their annual training plans. In France and Portugal training courses for specialised trainers, who are to act as "local relays", are being organised in the first half of 2001. The Dutch Finance Ministry is directly organising six targeted training days for the euro coordinators of municipalities in the first half of 2001.

The assessments made by government departments of local government preparations for the euro reveal a genuine but unequal operational commitment. In the Netherlands, for example, an official report presented to Parliament singles out fourteen small and medium-sized municipalities and twenty-six municipalities with over 50 000 inhabitants for not being sufficiently prepared. In France a recent survey among local accountants shows a level of preparation that is directly proportional to the size of the town: while 66% of the municipalities with over 50 000 inhabitants are on track or ahead of schedule, the proportion falls to 37% for municipalities with between 10 000 and 50 000 inhabitants, to 31% for those with between 3 500 and 10 000 inhabitants, to 27% for those with between 500 and 3 500 inhabitants and to 23% for the very many municipalities with fewer than 500 inhabitants. In Spain, according to an assessment by the Federation of Municipalities and Provinces carried out in March 2001, 30% to 40% of local authorities are significantly involved in making preparations. In Austria 85% of the municipalities have entrusted the organisation of the practical changeover to the euro to firms of consultants on the basis of long-term contracts.

The scenario for the public authorities' changeover to the euro does not impose any administrative model. It is neither desirable nor realistic for the 73 000 or so local authorities in the euro area to make uniform preparations. However, on the basis of the best practice found on the ground, the following observations generally apply:

- in the operational phase of 2001, guides and brochures are less useful for local preparations than timetables, which have been distributed in the Netherlands and France, for example;

- cooperation between municipalities of different sizes facilitates progress in preparing for the changeover to the euro, as illustrated by the experiences of Villeurbanne, Breda and Sintra;

- special care is needed in adapting the computer programmes necessary for the local payment of social security benefits in euros;

- lastly, the euro training of managers and employees of local public services in direct contact with the public should also enable them to answer the many questions which they are being or will be asked. Standard answer sheets can usefully be prepared and distributed for this purpose.

2.3.2.3. Local euro communication activities

Local government euro communication activities, whether in the form of local initiatives or local versions of national campaigns, are being stepped up in 2001. In Germany 100 towns will this year host the roadshow providing general information on the euro. In Italy the "euro caravan" will be continuing its educational visits to medium-sized towns until June 2001. In Portugal several towns are planning a euro week featuring educational activities on the practical use of the euro for employees in public services, schoolchildren and SMEs. In Spain 400 rural local authorities will be hosting two travelling exhibitions on the euro. In France a consumer association that has representatives on local councils is organising practical euro presentations on the ground, in partnership with the Post Office and retired executives, among others.

Local euro communication campaigns are also tending to become more closely targeted. Through a combined effort by local authorities, local tourist offices and chambers of commerce, information on the euro for those engaged in tourism and tourists themselves is disseminated in tourist areas. For example, associations are sent practical information to facilitate the preparation of financial dossiers for Dutch towns. With the support of a guide produced jointly by the Economics and Finance Ministry, the Industry Ministry, the Caisse des Dépôts et Consignations, the European Interregional Consumer Institute and the Assembly of French Departments on the basis of the tools developed for the Commission's "Euro Made Easy" project, every department in France is running a euro awareness programme ("All ready for the euro") for people facing social difficulties. Similar action has been taken by several Member States including Belgium, Spain and Italy. Euro festivals have been organised in each region in Italy by local authorities, citizens' associations and economic actors as part of the project coordinated by the association "Cittadinanza Attiva". Action focussing on other groups in difficulty is being relayed in 2001 by twelve members of the Eurocities network under the Exchange II measure supported by the Prince programme. The outermost regions are also working together within this same framework to take account of the needs of the sections of the population that find it difficult to have access to information.

Local government can also help to smooth the changeover to the euro for SMEs by supporting the activities undertaken by chambers of commerce. At Jyväskylä, in the centre of Finland, a regional development company set up by local government includes in its support services for local SMEs advice and information on access to international markets when switching to the euro. Local authorities are organising specific activities providing information on conversion for small firms which have been awarded public contracts. Changeover to the euro by semi-public companies or local public enterprises, which are often governed by private law, may encourage local SMEs to follow suit. In Ireland the Loughrea Euro Town Project, under which selected businesses in this provincial town changed over early to the euro, has been completed and their experience is being passed on to businesses nationally, which are now in the process of changing over.

Public administrations are beginning to make greater use of the euro in their public activities and their relations with users. Admittedly, central government departments are more prepared to conduct financial transactions in euros than the social security bodies and most local authorities. However, this statement needs to be qualified: large local authorities have been taking advantage of the financial opportunities offered by euro borrowings for some years; public contracts and contracts running beyond 2001 are often denominated in euros either exclusively or alongside the national currency in order to avert any conversion disputes. Local authorities are more reluctant to use the euro for managing payments and tax returns or for paying employees' salaries.

However, this cautious approach on the part of local government reflects local public opinion and the public's perception of the changeover to the euro. The growing involvement of local government in local communication campaigns is all the more important in 2001 in order to facilitate the transition to the use of the euro in everyday life.

2.4. Preparations by the general public

On the whole, members of the public have not come to grips particularly well with the main elements of the changeover to the euro, are unfamiliar with the new scale of values and are making relatively limited use of the new currency. A few months remain in which to help them become aware of the timetable for the changeover to the euro, familiarise themselves with the practical side of the new currency and memorise a few reference prices.

2.4.1. The public's knowledge about the euro

According to the Commission's Eurobarometer study (questions asked in January 2001), [25] the public is becoming more knowledgeable about the general timetable for the changeover to the euro, but there are still numerous gaps in its knowledge of the details of the operation.

[25] Eurobarometer Flash No 82/5, "Attitudes to the introduction of the euro", conducted by Gallup Europe on behalf of the Commission.

2.4.1.1. Timetable for the changeover to the euro

The date on which euro notes and coins will be brought into circulation is now relatively well known. On average, 60% of people living in the euro area spontaneously answered 1 January 2002, a figure at least twenty points up on November 2000, while some 10% thought the date was earlier and 24% later. As the deadlines approach, the number of people who think the date is earlier will, by definition, fall (unless they become confused with the frontloading date).

There was a particularly high number of correct replies from Luxembourg (81%), the Netherlands (77%), Finland (74%), Ireland (73%), Belgium (67%), France (65%) and Germany (63%). There is still a definite problem in three countries where most of the answers given were wrong: Spain (correct answers 48%), Portugal (45%) and Greece (34%). Overall, men and better-educated individuals are more aware of the correct date than the rest of the population.

The European public is still not very sure about the duration of the period of dual circulation: the average estimate is six months, i.e. three times as long as it will actually be. The degree of information is moving in the right direction (the average estimate was eight months in November 2000), albeit fairly slowly. Estimates by Dutch citizens are the most accurate (on average: 4.1 months), while the Portuguese (8.3 months) and the Austrians (7.9 months) are the least accurate.

2.4.1.2. Practical aspects of the euro

Not everyone yet realises that euro notes and coins can be used throughout the euro area: on average, 24% of the general public think that the notes and coins issued in their country will be legal tender only there and have not, therefore, really understood the actual concept of the single currency. The results are much the same in all the participating countries (accurate answers number between 70% and 80%). In November 2000 one person in five still believed that the introduction of the euro would not be accompanied by the withdrawal of the national currency units.

Two thirds of the general public (68%) are now aware of the definitive and irrevocable nature of the euro conversion rate against the national currency unit. The only country where the result is well below the average is Germany (57%). Overall, women, the elderly and the least-educated individuals are less well informed on these two points than the rest of the population.

Only 15% of people in the euro area know the exact conversion rate. Little progress is being made in memorising it, with an improvement of only three points between the beginning of 2000 and the beginning of 2001. The vast majority of the mistakes made tend to overvalue the euro. Although they are unfamiliar with the six-figure rate, most people do have an idea of the euro's correct approximate value. With a margin of error of +/- 1%, accurate replies were 52.5% and, with a margin of +/- 5%, 73% . However, there are significant differences between countries in the approximate knowledge of the conversion rate. With a margin of error of 5%, 83% of Dutch people, 87% of Luxembourgers and 90% of Belgians, but only 54% of the Irish, are able to give the right answer. Curiously, the results for Italy (65%), Portugal (68%) and Germany (71%) are below the average even though the conversion rate in these three countries is very close to a round figure which is easy to memorise. [26]

[26] For instance, EUR1 = ITL 1936.27 (ITL 2000 is within the 5% margin), DEM 1.95583 (DEM 2 is within the 5% margin), PTE 200.482 (PTE 200 is within the 5% margin).

2.4.2. Familiarisation with the new scale of values

In order to "understand" prices in euros and to be able to assess price differences, consumers need to construct for themselves a scale of values in the new currency by memorising a few reference prices. This learning process takes time. In order to prepare consumers for the euro, it is therefore desirable to adopt an active approach which prompts them to acquaint themselves gradually with a euro environment. The communication campaigns should also help them to memorise a few reference prices in euros. In October 2000 the Commission advocated the advance changeover of bank accounts and non-cash means of payment (see point 2.2.) by public utilities, the payment as soon as possible of wages in euros, the conduct of wage negotiations in euros and the setting of prices in euros [27] from the third quarter of 2001.

[27] For distance sales and sectors in which non-cash payments account for the bulk of transactions.

Two points need to be made as things stand: the consumer is not very particularly familiar with the euro and progress in implementing a more active approach is still slow.

2.4.2.1. Consumer unfamiliarity with the euro

Almost 80% of consumers have not memorised prices in euros, a proportion that remained relatively stable throughout 2000. Consumers in France (28.2%), Luxembourg (24.6%) and Spain (23.4%) have been fairly successful in memorising reference prices, unlike consumers in the Netherlands (11.3%), Portugal (13.8%) and Ireland (14.2%). On the whole, men have been more active than women in memorising euro prices (25.7% compared with 19.1%).

On average, 56% of people living in the euro area nevertheless say that they do pay attention to dual pricing, a figure that has remained roughly constant since the launch of economic and monetary union. While answers do not vary significantly in terms of gender, level of education or social class, there are appreciable differences in the attention paid to dual pricing from one participating country to another: while 69% of Spaniards, 73% of Italians and 76% of Finns say that they pay attention, only 39% of people in France, 41% in Belgium and 42% in Luxembourg make this claim. Perhaps these figures reveal a boredom factor in these three countries, where dual pricing is generally more widespread than elsewhere and where, as in other countries, consumers are finding the three-year transitional phase very long. Overall, almost all the large European retailers have introduced dual pricing virtually in full. In smaller shops the proportion ranges from 30% to 50%, depending on the country. Three participating countries (Greece, Portugal and Austria) have introduced legislation making dual pricing compulsory. Some countries, including Belgium, reserve the right to do so if dual pricing does not spontaneously take off in the second half of 2001.

It is clear, however, that dual pricing, in its present form (with the price in the national currency unit being displayed more prominently than the price in euros), has a fairly limited impact on consumers. According to a special Eurobarometer survey, [28] fewer than one consumer in ten (8%) systematically looks at the price in euros. The boredom factor is also significant: the proportion of individuals who do not look at prices in euros has increased by eight points compared with 1999. The attention paid to prices in euros will probably grow towards the end of the year as the different deadlines approach.

[28] Eurobarometer No 54, "The Europeans and the euro", conducted by the European Opinion Research Group on behalf of the Commission. Published in March 2001 (questions asked in November).

2.4.2.2. Slow start to a more active approach

It is still extremely unusual outside the financial sector for prices (including psychological prices) to be set in euros . Several large retailers intend to start doing so for all their stock in the last quarter, generally around November. The approach adopted by the retail trade often varies according to the type of product sold: the greater the turnover (e.g. foodstuffs), the less frequent are plans to fix the price in euros in advance. More frequently, such plans are for products delivered in the last few weeks of 2001 and likely to be sold during the first quarter of 2002 (e.g. clothing and household electrical appliances).

The joint statement by representatives of European consumers and representatives of traders and SMEs adopted on 2 April 2001 in Brussels (see Annex 3) recalls the undertaking set out in the 1998 Eurologo Agreement to introduce dual pricing generally in 2001 and provides for the euro price to be displayed more prominently than the price in the national currency unit, [29] and for prices to be set in euros between September and the beginning of December 2001. This European agreement must now be implemented at national level. France is so far the only country to have recommended officially that the price in euros be more prominent. [30]

[29] According to Eurobarometer Flash No 82/5, the majority (56%) of consumers in the euro area agree.

[30] Opinion No 9 of the National Consumer Council. Available at www.euro.gouv.fr.

For the time being, the payment of wages and salaries in euros is confined to large firms, the European institutions and to a very few SMEs. More and more firms are, however, showing the equivalent value in euros on payslips or even providing two payslips (one in euros, one in the national currency unit), at the risk of causing some minor differences in rounding.

The changeover by public utilities is likely to enhance the euro's visibility appreciably. It started in January 2001 in France, when gas and electricity bills switched to the euro, [31] and will have become generalised by July. Italy is preparing similar measures for July, Luxembourg and Spain for September, and Belgium and Portugal for October. Other countries could shortly join this list. The advance changeover of bank accounts and non-cash means of payment is spreading (see point 2.2.).

[31] Causing a 253% rise in euro payments in one month.

2.4.3. Degree of euro use

Private individuals have very few euro accounts and very rarely use the European currency for their non-cash payments, but active use of the euro is essential if reference prices in euros are to be gradually memorised.

2.4.3.1. Euro bank accounts

At the end of 2000 the percentage of private euro accounts as a whole was 1.4% of the total number of accounts. [32] The pace at which they are being opened remains sluggish: only one in thirty-three new accounts opened is in euros (3.02%). The opening of a euro account or the conversion of an existing account is not essential for euro transactions (they can be carried out through an account denominated in a national currency unit), but it demonstrates the consumer's determination to become actively familiar with the new currency.

[32] Quarterly review of the use of the euro, No 5, European Commission. Available at www.europa.eu.int/comm/economy_finance/document/misc/eurouse_en.htm.

Except for Luxembourg (9.7% of accounts in euros), the proportion of private accounts in the European currency is generally very limited, ranging from 2.5% in Spain to 0.03% in Ireland. Consumers were questioned by the Eurobarometer survey [33] about the date on which they intended to open a euro account or convert their existing account to the euro: 41% replied 1 January 2002 and 34% said it would be the date on which the national currency unit is withdrawn. Only 6% mentioned 2001. The advance changeover of bank accounts at the beginning of the second half of 2001 will therefore have to be accompanied by a significant information and explanation drive by the banks so as not to confuse consumers.

[33] Eurobarometer No 54, "The Europeans and the euro", conducted by the European Opinion Research Group on behalf of the Commission. Published in March 2001 (questions asked in November).

2.4.3.2. Euro payments

Private individuals are making very little use of the euro. The proportion of the euro in total national payments stands at 1.38% in volume terms and 6.1% in value terms. After a short period in 1999 when euro payments by consumers caught on, they tended to diminish in 2000, engendering a sort of vicious circle: the small number of euro payments has led a good many firms to stop offering customers the opportunity to make euro payments. For example, at the beginning of 1999 retail cashiers very often asked customers to choose between paying in euros or in the national currency unit. At the end of 2000 consumers who wanted to pay in euros sometimes discovered that cashiers were unaccustomed to using the euro and were obliged to call a supervisor to find out how to process the transaction, while other customers waiting in the queue grew increasingly impatient. The advance changeover of non-cash means of payment early in the second half of 2001 will mean that the mass use of the euro by consumers can be given fresh impetus.

The results by country are low everywhere, with some slight differences from one country to another. Luxembourg is well in the lead (10.5%), followed by Belgium (4%). At the other extreme are countries such as Ireland, [34] Austria or Finland, where it is in fact almost impossible for consumers to use the European currency (except via transfers) because of the failure to adapt payment terminals to the euro (sometimes combined with the very infrequent use of cheques): as is to be expected, the proportion of payments made in euros in these countries is less than 1%.

[34] Payment terminals in Ireland are, technically speaking, mono-currency terminals and will all be switched over to the euro on 1 January 2002.

According to Eurobarometer, 98% of euro-area nationals have not yet made payments in euros by card or by cheque, while 96% have not done so by direct debit or by transfer. In this survey, people in Luxembourg are the only ones well above the average (11% by direct debit or transfer, 5% by cheque and 4% by card). Several possible explanations for this lack of interest in the option of paying in euros have been tested:

- a quarter of consumers say that they are afraid of confusi