WRITTEN QUESTION E-2988/00

by Lousewies van der Laan (ELDR) to the Commission

(20 September 2000)

Subject: Problems with introducing the euro

The political party D66 is concerned at the warning from Europe's largest retail concerns, in an open letter to the European Ministers of Finance, that financial transactions will come to a standstill when the euro is introduced in 2002. The retail trade bases this warning on research by Insead and the Koblenz School of Management. To avoid problems when the euro is introduced, industry wants consumers to be able to change money into euros before 1 January 2002. At the end of 2001 all Dutch consumers will be given a kit containing samples of all euro coins.

Does the Commission agree that chaos when the euro is introduced could seriously undermine public support for the European currency?

Why is it that consumers cannot obtain euro banknotes before the euro is introduced?

Does the Commission agree that issuing a symbolic amount of coins for promotional purposes, for example in the Netherlands, is no solution to the risk of monetary transactions coming to a standstill on 1 January 2002?

Does the Commission agree that private individuals should have access not only to coins but also to banknotes prior to 1 January 2002 so that the introduction proceeds smoothly?

Does the Commission intend to compile a list of best practices from the initiatives which the Member States are currently taking independently of each other?

Answer given by Mr Solbes Mira on behalf of the Commission

(17 November 2000)

The introduction of the euro will make European integration a daily reality for over 300 million Europeans. Practical preparations for its introduction are therefore a priority of the highest order for the Commission, as well as for the Member States. In order to smooth the way for transition to the new currency, the Commission has produced a recommendation on measures to facilitate the preparation of economic operators for the changeover to the euro, which it adopted on 11 October 2000(1).

At the meeting of Ecofin Ministers in Versailles, the European Central Bank and the majority of Member States agreed that early introduction of banknotes might lead to confusion and give consumers the idea that the date of introduction had been brought forward.

In addition to the distribution of free sets to the public, the Netherlands, like the other Member States, is producing larger sets for sale. However, regardless of the scale of advance distribution of the euro, it will continue to be possible to carry out transactions in national currencies (notes and coins) up until the end of the period of dual circulation, thereby ruling out any risk of financial transactions coming to a standstill.

It is possible to ensure that small denominations are widely available, hence reducing the need for change, without resorting to advance distribution, for example by stocking cash dispensers, as suggested in the Commission recommendation.

The Commission has drawn on examples of good practice in the Member States in preparing its recommendation. At the Eurogroup each month it distributes a table comparing national plans.

(1) COM(2000) 2985 final.