WRITTEN QUESTION E-2063/98

by Anne André-Léonard (ELDR) to the Commission

(7 July 1998)

Subject: The euro and postage stamps in Andorra, Monaco, San Marino and the Vatican City

On 1 July 2002 the euro will become the single currency for those EU Member States which have signed up. Andorra, Monaco, San Marino and the Vatican City do not form part of the European Union.

These countries issue postage stamps whose face value is denominated in currencies which will be converted into euros. Can the Commission state whether they will be entitled to issue their stamps in euros?

In the specific case of Andorra, which postal authorities will be responsible for issuing stamps?

Will all postage stamps denominated in euros be valid in all EU Member States? If so, why? (e.g. will a stamp issued in France be valid in Finland, or a stamp issued in Italy be valid in Portugal?).

Could the Commission clarify these questions which have scarcely been mentioned so far?

Answer given by Mr de Silguy on behalf of the Commission

(21 September 1998)

From 1 January 1999 the euro will be the currency of 11 Member States of the Community. The introduction of the euro notes and coins will begin on 1 January 2002. The national postal authorities will each have decide on their strategy to make the changeover to the euro, but it is likely that they will want to start this process long before 2002. The changeover will involve nearly all aspects of their business, including the setting of postage fees in euro. However the most visible change will be the redenomination of the nominal values of stamps from the national currency unit to the euro.

Each national postal authority issues its own stamps, indicating a pre-paid service for the delivery of letters and parcels. Stamps issued in one Member State include the fee for delivery postal services in other Member States. According to the rules of the Universal Postal Union (UPU) to which nearly all countries in the world adhere, letters and parcels for which postage is paid in one country will be transported and delivered in the others. So far, no postal administration accepts the pre-payment of its services by means of a stamp sold in another country. This is for reasons not connected with the currency denomination of the stamp. In order to identify which postal service has been paid, the UPU rules require that each country must put its name on the stamps it issues (with the historical exception of the United Kingdom). Therefore, even if countries with the same currency issue stamps, there is no risk of confusion, or of illicit use in other countries, as each stamp will have the home country name printed on it. The introduction of the euro will not alter the existing international postal arrangements in any way. However, the euro will bring a higher degree of price transparency to many cross-border services.

The Community cannot in principle prevent the use of the euro in third countries. If parties in third countries wish to set up contracts in euro, provided their applicable contractual law allows for it, they are free to do so. A similar reasoning applies to services: if the authorities in Andorra, Monaco, San Marino, Vatican City or any other third country want to set prices in euro - and in particular if the postal services wish to issue stamps in euro - they are free to do so.