WRITTEN QUESTION E-2987/00

by Lousewies van der Laan (ELDR) to the Council

(25 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 Council 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 Council 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 Council 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?

Reply

(26 February 2001)

The Council, on 8 November 1999, took note of the following statement issued by participating Member States:

The introduction of euro banknotes and coins in January 2002 will be the final and most visible step in the changeover towards the single currency. Member States are aware of its historical significance. The cash changeover in the euro zone is an unprecedented logistical challenge. The strategy which should best be followed has been studied intensively over the last months in each participating country and at Community level. The results obtained in discussions among all those concerned have allowed Ministers from participating Member States in close co-operation with national central banks and in line with the views expressed by the European Central Bank to arrive at common views on the outlines of the cash changeover. These leave room for Member States to implement the cash changeover in the way which suits best the specific circumstances in each country.

1. Member States will make their best efforts to ensure that the bulk of cash transactions can be made in euro by the end of a fortnight from 1 January 2002.

2. Member States consider that the period of dual circulation of the old and new notes and coins will last between four weeks and two months. Member States may facilitate the exchange of old notes and coins after this period.

3. To provide for a sufficient quantity for circulation in the first days of January 2002, it would be helpful if financial institutions and certain other groups, notably cash in transit companies and retailers, were already provided with notes and coins some time before 1 January 2002. Member States recall that such frontloading must not lead to putting euro banknotes and coins into circulation before 1 January 2002.

4. In order to help citizens to familiarise themselves with the new coins and to facilitate the changeover, Member States agree that making limited quantities of coins available to the public on request, notably to the vulnerable groups of the population, can be envisaged but not before the second half of December 2001.

In its communication of 12 July 2000 to the European Parliament and the Council(1), the Commission summarises the detailed modalities of frontloading of euro notes and coins to traders (banks and retailers notably) and of a limited quantity of euro coins to the general public as envisaged by Member States in conformity with the above.

Putting at the disposal of the general public, prior to 1 January 2002, of euro banknotes and important quantities of euro coins, will only add to possible confusion, since these banknotes and coins will only have legal tender status as from 1 January 2002.

The Council will continue to monitor the situation and will take, if needed, appropriate steps in order to ensure that the problems referred to by the Honourable Parliamentarian, will not arise.

(1) COM(2000) 443 final).