Commission Communication to the European Council - Second Report on the preparations for the introduction of euro notes and coins
Date: 2001-10-10
Institutions: European Commission
Subjects: EU Member State, bank, distributive trades, euro, paper money, public awareness campaign, report, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 10.10.2001
COM (2001) 561 final

COMMISSION COMMUNICATION TO THE EUROPEAN COUNCIL

Second report on the preparations for the introduction of euro notes and coins

COMMISSION COMMUNICATION TO THE EUROPEAN COUNCIL

Second report on the preparations for the introduction of euro notes and coins

Executive summary

This report is for the European Council. It describes the state of play with preparations,
looks closely at a number of major operations and identifies the best practices for ensuring
a trouble-free changeover to the euro.

the situation is still rather uneven:

By and large, significant progress has been made since the first report was presented
(April 2001). But
the state of preparation varies
appreciably between economic operators. While national administrations have nearly
completed their preparations,
local authorities do not appear to be as far advanced.
Preparations by SMEs are also moving rather slowly, with significant numbers not
sufficiently aware of deadlines or costs.1 General public awareness has improved
considerably but remains insufficient overall.2 The use of the euro has increased slightly,
particularly in transactions with the public authorities. But businesses are not turning to the
European currency readily and its use by private individuals remains very low.
Communication efforts are being intensified. The Eurosystem has launched an extensive
80 million, using all media. Information campaigns by
campaign with a budget of
Member States and the Commission are being stepped up and will peak in December, with
a Community contribution of

28 million.

€

€

To improve matters quickly, the Commission considers it necessary:

to step up the information operations mounted by the public authorities and trade
-
associations for SMEs. Special attention must be given to shops, which must be made
aware of the practical and logistical problems (cash desks, change, queues, handling of
notes and coins, etc.) connected with the changeover to the euro;

-
to increase the information effort for the public - in particular people who do not
have easy access to information - and to ensure that advance changeover policies are
introduced everywhere (for bank accounts, non-cash means of payment, prices, salaries,
etc.) in order to promote gradual immersion into a euro environment and to help people to
become familiar with a new scale of values.

The production of euros is on schedule. By the end of August, more than 11 billion euro
banknotes and by the end of September 46.8 billion euro coins had already been produced,
quantities that cover the overall requirements for the initial launch.

1

2

Flash Eurobarometer on SMEs, September 2001.
Flash Eurobarometer on attitudes to the euro, September 2001.

2

As regards the measures to introduce euro banknotes and coins, the framework for
frontloading in and outside the euro area is now complete. Operations have already started
in some euro-area countries and are progressing satisfactorily. One remaining uncertainty
concerns the participation of traders in sub-frontloading, the arrangements for which are
still by and large moderately attractive. The adaptation of ATMs in most participating
countries will allow a very quick transition. Simulations show that the majority of the
population will have received euro banknotes from banks by 5 January and in some
countries this period will be even shorter. The pace of introduction will therefore be even
faster than initially planned. The November 1999 Council declaration set the target of
completing the bulk of the exchange operations in two weeks; in actual fact
it will
probably take only half that time. Euro coins will be available from 14 December at the
earliest and will also be brought into circulation rapidly in the first days of January.

The Commission appeals for:

greater efforts to urge SMEs to take part in sub-frontloading, for instance by

-
offering more favourable debit arrangements;

continuing efforts to speed up the adaptation of ATMs by 1 January in the two

-
countries lagging behind.

Possible risks include, mainly, the storage and transport of cash, possible shortages of
banknotes and various other problems,
including communication. Storage capacity is
sufficient for banknotes but most countries are making special arrangements for coins. On
transport, several Member States are drawing up contingency plans. Possible cash
shortages concern mainly small-denomination banknotes so additional quantities are being
produced. An information network on the transition to the euro as legal tender will be set
up and run by the Commission and the Secretariat of the Economic and Financial
Committee. It will serve as a common framework for processing all the information on the
changeover during the period when euro coins and notes are being introduced and will
review the way the operation is progressing in general. The monitoring of price movements
is also deemed to be particularly important. The public is increasingly concerned that it
will be subject to abuses during changeover and there have been complaints in several
countries about abusive price rises both in the public and in the private sector.
Member States have committed themselves to public tariff conversion that is either neutral
or in favour of consumers on balance but unfortunately local authorities do not always
abide by these rules. A European agreement guaranteeing overall price stability during the
transition to the euro was signed in April by traders' and consumers' representatives. The
Member States and the consumer associations are also setting up mechanisms for
monitoring prices.

The risk of price rises is, broadly speaking, very slight or even non-existent. To keep it as
low as possible, the Commission would ask the national authorities and traders to honour
their undertakings to keep prices stable when changing over to the euro and consumers to
remain vigilant. Together with the ECB and the Council, the Commission will keep a close
watch on prices. It calls on Member States to publish appropriate indications as frequently
as possible in 2002.

3

Important progress has been made in establishing a comprehensive framework for
protection against counterfeiting of euro banknotes and coins. Implementation of the
relevant
is monitored by the
Community institutions.

texts (Council Regulation,

framework decision, etc.)

The report goes on to identify and recommend forty examples of good practice. These
measures cannot always be transposed from one country to another or from one sector to
another but would, as a rule, prove beneficial in most of the participating countries.

Twenty examples of good practice are deemed very important for ensuring a smooth
changeover: setting prices from now on in euros, along with the equivalent in the national
currency unit; early changeover of bank accounts and non-cash means of payment; early
changeover of main utilities bills; free unlimited exchange of national notes and coins for
euros in early 2002 for customers at bank counters, subject merely to a period of notice for
large amounts; free exchange of national notes and coins for euros in early 2002 for
non-customers, up to a ceiling to be set by each bank; adapting cash dispensers to euros as
early as possible; no charging of handling fees by banks for the return of national notes and
coins by traders in early 2002; deferred debiting (in terms of the value date) of notes and
coins sub-frontloaded to retailers; distribution to small traders of ready reckoners for
calculating change; sending specialists on the spot to explain the changeover arrangements
to traders; developing a dialogue on the euro within businesses between management and
labour; giving check-out staff practical training in handling euro notes and coins in 2001;
opening some or all bank counters on 1 January 2002; extending bank opening hours in
early 2002; supplying small-denomination notes when household amounts are withdrawn
at bank counters in early 2002; traders to give change exclusively in euros in early 2002;
traders to comply with the commitment to overall price stability entered into by their
representatives at European level; continuation of dual pricing at least until the end of the
dual circulation period; provision of practical training sessions specifically for persons
with sensory or mental disabilities; and organisation by local authorities and associations
of grassroots information campaigns for vulnerable population groups (homeless people,
elderly people living on their own, etc.).

Twenty other examples of good practice are identified by the Commission as helpful:
distributing simple tools for estimating cash requirements; with the customer's agreement,
including kits of euro coins in change given during the last few days in December;
distribution of kits of euro coins by employers as a free gift to their staff; loading cash
dispensers with smaller denominations of national banknotes during the final days of
December; organising operations to simulate euro payments; involving all local actors in
euro information campaigns; postponing the starting date of the winter sales if these
normally take place during the first week in January; appointing one or more members of
staff in large supermarkets and department stores specifically to answer customers'
questions about the euro; distributing standard packages for returning national coins;
keeping in a separate place national notes and coins received at checkouts; placing
the disposal of customers; appointment of euro ombudsmen by local
converters at
authorities or chambers of commerce; distribution to traders by local authorities and
chambers of commerce of posters showing the euro notes and the full set of euro coins (all
the different national sides); arranging for price movements to be monitored by the public
authorities, possibly in cooperation with consumer associations; organisation by national or
local authorities of information campaigns catering for immigrant populations, with
material drafted in the main languages they speak (Arabic, Turkish, Swahili, etc.);

4

frontloading of euro notes to traders essentially in small denominations (5 and/or
10 euros); placing printed conversion tables or discs on shopping trolleys in large
supermarkets; distribution by the public authorities or voluntary associations of special
converters for sensitive population groups; organisation by the public authorities or
chambers of commerce of training in counterfeit detection for traders; and measures to
stimulate payments in euros in 2001.

The Commission calls on Member States and trade associations to apply these good
practices wherever possible in order to facilitate the preparations for the euro and the
operations for the introduction of notes and coins.

5

TABLE OF CONTENTS

COMMISSION COMMUNICATION TO THE EUROPEAN COUNCIL

Second report on the preparations for the introduction of euro notes and coins

1.

State of progress with preparations ...........................................8

1.1.

Preparations by businesses........................................................................................ 8

1.1.1. Current progress ....................................................................................................... 8

1.1.2. Degree of euro use.................................................................................................... 9

1.2.

Preparations by financial institutions ...................................................................... 11

1.2.1.

Early switchover of accounts and non-cash means of payment ............................... 11

1.2.2.

Frontloading and sub-frontloading operations......................................................... 11

1.2.3. Adaptation of automated teller machines (ATMs)................................................... 13

1.2.4.

Exchange of national notes and coins for euros....................................................... 14

1.3.

Preparations by administrations .............................................................................. 15

1.3.1. National administrations......................................................................................... 15

1.3.2.

Local government................................................................................................... 17

1.4.

Preparations by the general public .......................................................................... 19

1.4.1.

The public's knowledge about the euro ................................................................... 19

1.4.2.

Familiarisation with the new scale of values ........................................................... 20

1.4.3.

The concerns of Europeans in relation to the euro................................................... 22

1.4.4.

The use of the euro by consumers........................................................................... 23

1.5.

Information campaigns ........................................................................................... 24

1.5.1. Action by the Commission and the Member States ................................................. 24

1.5.2.

The Eurosystem campaign...................................................................................... 29

2.

2.1.

Work in progress and examples of good practice....................30

Work in progress .................................................................................................... 30

2.1.1.

Emergency plans and security measures ................................................................. 30

2.1.2.

Progress in the fight against counterfeiting ............................................................. 33

2.1.3. Dealing with the risk of price increases................................................................... 36

2.1.4.

Production of euro notes and coins ......................................................................... 37

2.1.5. Bringing the new notes and coins into circulation ................................................... 40

6

2.1.6.

Practical euro training measures for the general public and in particular for groups
which have difficulty in obtaining information ....................................................... 41

2.1.7. Cross-border payments in euros.............................................................................. 42

2.2.

Forty good practices to facilitate the changeover to the euro ................................... 44

2.2.1.

Twenty good practices the Commission believes are of great importance ............... 44

2.2.2.

Twenty good practices the Commission believes would be useful........................... 47

3.

3.1.

3.2.

Annexes ..................................................................................49

Legislative measures in the Member States............................................................. 49

Comparative table of national euro changeover plans.............................................. 53

7

With less than three months to go before euro notes and coins are to be put into circulation,
this report to the European Council is intended to give a comprehensive overview of the
state of preparations for the changeover, put the spotlight on some major areas of work in
progress and identify some forty examples of good practice that are either considered
essential or can usefully be adopted in the interests of a smooth transition.

1.

1.1.

STATE OF PROGRESS WITH PREPARATIONS

Preparations by businesses

1.1.1. Current progress

1.1.1.1. Large businesses

in particular those conducted by the Federation of
According to the latest surveys,
European Accountants (FEE)3 and the Union of Industrial and Employers' Confederations
of Europe (Unice),4
large businesses have now attained a satisfactory level of
preparedness.

Nearly all large firms have taken the necessary steps to meet their legal obligations in
euros, including redenominating their capital, adapting their accounting and invoicing
systems and being ready to lodge declarations in euros with the administrative authorities.
They have likewise adapted their prices and hardware and have planned staff training
programmes which they have usually begun to put into effect.

1.1.1.2. Small and medium-sized businesses

The degree of readiness for the euro among SMEs in Europe is generally lagging far
behind that of large firms. According to the latest Flash Eurobarometer survey published in
September,5 only 23% of SMEs claim to be ready for the euro, a figure similar to that
observed in the spring of 2001. Nearly one in five have yet to begin their preparations.

The share of medium-sized businesses (between 50 and 249 employees) claiming to be
generally prepared for the euro now stands at 49%, twice as high as last spring. But only
9% of SMEs consider themselves to be fully euro-compatible. Firms in Luxembourg
(37%), the Netherlands (23%) and Austria (21%) appear best prepared to work in euros as
of now; those in Spain (9%), France (8%) and Italy (4%) are the laggards.

It comes as no surprise then that small businesses (fewer
than 50 people) and
micro-businesses (fewer than 10 people) are the least well prepared. Only 22% of the latter
claim to be generally ready and 8% euro-compatible. Only a minority of small firms have
identified the impact of the euro function by function, assessed their training needs or
informed their partners of their intentions.

The sluggishness of SMEs' preparations is liable to have adverse repercussions on their

3

4

5

Available at www.fee.be.
Available at www.unice.org.
Survey conducted on the basis of a sample of 2 813 SMEs in the euro area by EOS Gallup Europe
on behalf of the Commission, July/August 2001.

8

ability to operate exclusively in euros from 1 January 2002: nearly one in five does not
believe it will be able to carry out all its transactions in euros from day one. One of the
priority tasks for governments and trade associations is therefore still to bring it home to all
businesses that 31 December 2001 is a cut-off point after which all book-money
transactions by economic operators will have to be in euros.

Finally, special attention will have to be paid to preparations by public transport
companies. For vehicles in which tickets are sold on board (mainly buses and trams) the
fact that it will take longer to pay and the problems of storing cash could pose major
difficulties. The Commission will present a working paper dealing specifically with this
question to the Council of Transport Ministers.

1.1.1.3. Traders

Compared with other sectors, the distributive trades are faced with additional challenges
inherent in the type of business they are engaged in. Conversion, dual display of prices and
training of staff in contact with the public call for special attention and need to be carefully
prepared. Traders will also play a key role in the introduction of euro notes and coins and
the withdrawal of the old national ones. They have to adapt their equipment (in particular
cash registers and weighing machines) and prepare for the dual circulation of euros and
national currency units: estimating their cash-float requirements in order to be able to give
change in euros, managing queues, answering customers' queries, arranging for cash
storage capacities and security measures, etc. It is essential in particular that traders'
payment terminals be converted to the euro before 1 January 2002 or that their accounting
systems be tested. If this is not done, some traders may find that their transactions are
rejected at the beginning of 2002 because their equipment has not been adapted.

The impact of the euro's arrival will of course vary according to the type and size of retail
business. As with smaller businesses generally, small shopkeepers are the least well
prepared, whereas large supermarkets have usually completed their preparations, often
running exercises to simulate purchases in euros. The Irish authorities have distributed to
traders training kits containing a full manual explaining the changeover to the euro and the
steps to be taken, a detailed list of several thousand prices in pounds with their euro
equivalents (to minimise the risk of error when converting price labels) and a
converter/change calculator. It would be a good thing if this type of measure were, as far
as possible, extended to all participating States.

Despite the information drive, SMEs overall are not making enough headway with
their preparations. Member States and trade associations must step up their efforts
as a matter of urgency so that advantage is taken of the remaining months to catch
up. Small firms, particularly those in the distributive sector, should be the focus of
special attention.

1.1.2. Degree of euro use

Businesses in general are still not making much use of the euro for their payments, their
bank accounts and their accounting.

9

1.1.2.1. Euro payments

According to a Commission study,6 the average proportion of national payments made by
businesses in euros grew slightly in the second quarter of 2001, but without regaining the
level reached in the third quarter of 2000 (26% as against 30% in that period).
Development of use of the euro is modest in volume terms, rising from 7.3% to 7.8%. The
threshold of 10% of payments in euros is exceeded for businesses' domestic transactions in
only two countries: Belgium (16%) and Luxembourg (25%). Two countries stand out on
account of their very low use of the euro: the Netherlands (0.28%)7 and Austria (1.7%).

The euro is being used much more extensively by businesses in their cross-border
transactions, in terms of both volume (33%) and value (43%). Business use in cross-border
transactions is particularly high in Spain (72% in volume terms), Finland (52%) and
Luxembourg (42%) and again particularly low in the Netherlands (4%) and Austria (15%).

1.1.2.2. Euro accounting and euro bank accounts

It is difficult to tell just how many businesses have switched over to euro accounting. They
may set prices and issue invoices in euros while continuing to keep their accounts in the
national currency unit. The authorities presume that businesses submitting VAT returns in
euros have switched over to euro accounting and obtain in this way a fairly reliable
estimate. The picture has remained the same for nearly a year: apart from firms in Belgium
and Luxembourg, where more than one company in five is keeping its accounts in euros,
few firms have so far switched over to euro accounting.8

As far as the bank accounts of businesses in the euro area are concerned, Commission
statistics show a sharp rise in the proportion of euro accounts in the second quarter of 2001
(from 4.8% to 7.9%) and indicate that the pace at which new euro accounts are being
opened has picked up slightly: more than one new account in six (18.5%) is opened in
euros. Expressed as a proportion of accounts held in euro-area currencies,
the euro
represents around one account in three (30%).

Use of the euro by businesses remains very low overall. The authorities should
encourage firms to make use of the euro forthwith: paying, obtaining payment and
issuing or receiving invoices in euros are all ways of testing whether they are
euro-compatible.

6

7

8

Seventh quarterly review of the use of the euro. European Commission, July 2001. Available at
www.europa.eu.int.
However, the Netherlands' Bankers Association estimates the use of the euro for payments by
companies in September at 3.6%.
In its previous communication, the Commission unfortunately incorrectly mentioned SAP software
among the possible reasons for the small number of firms which had switched over to euro
accounting, stating that some of the software "does not allow accounting to be switched over in the
course of the year since it is unable to calculate data retrospectively". This statement is incorrect: the
SAP software sold after 1998 does permit this and it is possible for customers to update software
purchased prior to 1998.

10

1.2.

Preparations by financial institutions

Preparations by banks have been stepped up considerably in recent months, with the
beginning of early automatic switchover measures in several countries and the launch of
frontloading operations in some of them.

1.2.1.

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. At the outset, only Belgian and French banks were planning to do
this, but banks nearly everywhere in the euro area have since decided to follow suit: 73%
of the banks questioned by the Commission during the second survey of the policy adopted
by banks for the transition to the euro, conducted in August 2001,9 had opted for early
switchover. Ireland is the only country where no bank is planning to do so. Leaving aside
the official scenarios, banks' choices vary widely, including within one and the same
country: it is not unusual to find banks that have decided to switch over in July operating
alongside others that have opted to wait until 1 January. Overall, there has been or will be
an early switchover of accounts by all banks in Belgium, Greece, Spain, France,
Luxembourg and Portugal, followed by a large number of banks in Germany and by some
banks only in the Netherlands, Austria and Finland. The date most often chosen for
launching the operation was in July (30%), followed by October (22%), September (16%)
and November (5%). With the exception of the Italian banks, all the early switchover
operations require no more than the customer's tacit agreement.10

The switchover of private customers' accounts was nearly complete by the end of
in Belgium and France and had not given rise to any significant
September
customer-relations difficulty (only a handful of complaints were received by most of the
large banks).

Most banks believe that an early switchover of accounts is useful both for the banks
themselves and for their customers: it allows for a better staggering of the technical
work involved and helps individuals to get used to the new currency. The switchover
operations that have been carried out so far have been fully successful; all banks that
have not yet done so should follow suit.

1.2.2.

Frontloading and sub-frontloading operations

1.2.2.1. Operations within the euro area

Commercial banks (and some post offices) received euro coins in September in Belgium,
France, Ireland, Italy and Portugal; they received both notes and coins in Germany, Spain,
Luxembourg, Austria and Finland. Portuguese banks will receive notes during October, the
period also chosen for the advance distribution of notes and coins in Greece. Belgian,
Spanish, Irish and Italian banks will receive euro notes in November, while French and

9

10

Second survey of the policy adopted by banks in preparing for the transition to the euro,
European Commission, 18 September 2001. Available at www.europa.eu.int.
On 25 September, however, a Decree was adopting giving Italian banks the possibility to switch
over their clients' accounts unless they receive an express request to the contrary.

11

Dutch banks11 will have to wait until December. No major incident has so far been
reported during frontloading operations.

Sub-frontloading, i.e. the redistribution by banks of some of the notes and coins they
receive to traders, began in September in Germany, Luxembourg, Austria and, for the
largest shops, in Spain. Sub-frontloading operations will be spread over the period between
October and December in other countries. The European Central Bank has also authorised
the sub-frontloading of small quantities of notes to businesses for training purposes from
September onwards. On average, the banks forecast that they will sub-frontload euros to
48% of their retailer customers.12 The differences between banks' forecasts are, however,
spectacular including within one and the same country: it is not unusual for one bank to
expect to sub-frontload 10% of its retailer clients and a competitor 90%. Such disparities
can stem both from differences in commercial policy and from the great difficulty in
estimating demand from traders. Austria (75%) and France (71%) are the countries with
the highest average forecasts, while Spain (15%) and Finland (12%) are those with the
lowest. Germany (32%) and Ireland (48%) are the other two countries where the average
forecast is below 50% of retailer customers.

The agreement concluded on 19 February 2001 between the Commission and the three
European banking associations stipulates that traders who are able to provide their bank
with guarantees in exchange for the notes and coins they receive will not be debited at a
value date prior to 1 January 2002. Implementation of the agreement
is better than
expected: many banks have gone further than that commitment. Some 47% of them will
defer debiting to 2 January without requiring any guarantee13 and 8% intend even to defer
debiting until after 1 January 2002. Except for Belgium and France, where all the banks
questioned will debit in value on 2 January, decisions nevertheless vary significantly from
one bank to another within the same country.

1.2.2.2. Operations outside the euro area

In order to facilitate the introduction of euro notes and coins, the European System of
Central Banks has set up arrangements for distributing euro notes to the banking sector
outside the euro area. These arrangements are extremely important for the central and
eastern European countries, where euro-area national currencies such as the German mark
play a major role as means of payment. For example, it is estimated that some 40% (in
value) of German mark banknotes in circulation are currently outside Germany.

for

frontloading

The guideline adopted by the Governing Council of the ECB on 13 September 200114
provides
area. From
sub-frontloading
1 December 2001, national credit institutions will be allowed to distribute to their branches
or headquarters located outside the euro area banknotes which have been frontloaded to
them. The volumes concerned may in some cases be large, particularly in the case of
German and Austrian banks, which have traditionally been very active in the countries of

outside

euro

and

the

11

12

13

14

Dutch banks can nevertheless obtain supplies earlier on request. Banks and major retailers in France
will also be able to benefit from more flexible arrangements.
Second survey of the policy adopted by banks in preparing for the transition to the euro,
European Commission, 18 September 2001.
Idem.
OJ L 257, p. 6.

12

central and eastern Europe. Credit institutions outside the euro area receiving euro notes
are not allowed to redistribute them to third parties, including traders. Special rules have
also been adopted for frontloading certain banks outside the euro area which are highly
active in the worldwide distribution of banknotes (e.g. Union des Banques Suisses and
Royal Bank of Scotland); central banks outside the euro area may, under certain
conditions, be frontloaded with euro notes from 1 December 2001. These conditions
include an undertaking not to put the notes into circulation before 1 January 2002 and the
obligation to provide collateral denominated in euros. Sub-frontloading will be possible
only to credit institutions that accept liability to contractual or regulatory penalties.15 All
these operational and practical arrangements must be agreed between the national central
bank receiving the request and its counterpart outside the euro area.

Frontloading operations are, for the time being, proceeding smoothly. If more traders
are to be encouraged to opt for sub-frontloading, however, they should be able to
benefit from deferred debiting arrangements along the lines of what the commercial
banks have obtained from the central banks.16

1.2.3.

Adaptation of automated teller machines (ATMs)

On average, 83% of automated teller machines covered by the survey will dispense euro
notes from day one, a slightly higher forecast than in March (up four points).17 The score is
over 80% everywhere, except for Greece (75%, twenty points down on March), Portugal
(48%) and Finland (25%, ten points up on March).

The swiftness of adaptation is generally due to the decision by banks to purchase new
cassettes for their ATMs rather than sending a technician to recalibrate existing machines
one by one for the new notes. The other possibility during the last few days of December is
to suppress one of the cassettes (by reducing the number of denominations offered) as part
of the recalibration operation so that euros can be dispensed first thing on 1 January.

A large majority of the banks questioned (68%) do not intend to continue dispensing
national notes in ATMs in 2002; this figure should be seen in the light of the high level of
adaptation of ATMs announced for 1 January 2002. Some 29% of banks plan to continue
dispensing national notes until such time as their equipment has been adapted, while 3%
plan to do so for some ATMs on a case-by-case basis: these decisions have, on the face of
it, a limited impact except in Portugal and Finland, where ATMs are being adapted slowly.
Continued dispensing of national notes could therefore significantly impede the
replacement process and thereby increase the problems of giving change that traders will
face.

Considerable headway has been made in stepping up the rate of adaptation of ATMs,
but special efforts are required in Finland and Portugal, where the situation still gives
grounds for concern.

15

16

17

The penalties apply if the euros received are put into circulation early. They amount to 10% of the
value of the notes and coins received.
In this instance, debiting in three stages on 2, 23 and 30 January (or a roughly equivalent formula:
one single debit on 15th).
Idem.

13

1.2.4.

Exchange of national notes and coins for euros

1.2.4.1. Exchange of notes during the dual circulation period

In October 2000 the Commission recommended that banks exchange at their counters an
unlimited amount free of charge for their customers, subject to a simple prior notice
requirement for large amounts. In all, this recommendation has been followed by 75% of
the banks questioned.18 Some 20% of banks will exchange a limited amount, while around
5% will exchange an unlimited amount, but only if deposited in the customer's account.
Austria is the only country where all the banks questioned plan to offer free limited
exchange (ATS 50 000, or
3 633.64). A number of individual banks will do the same in
Italy, Luxembourg, Portugal and Finland. The Netherlands stands out because of the wish
of most banks there to provide an exchange service by deposit in the customer's account
only. In the final analysis, Belgium, Germany, Greece, Spain, France and Ireland are the
only countries where the situation remains
fully in line with the Commission
recommendation.

€

The Commission also recommended free exchange for non-customers, subject to a ceiling
set by the banks. This recommendation has been followed and, in some cases, exceeded by
81% of the banks questioned. Some 67% of them are planning free limited exchange
(eleven points up on the intentions expressed in March) and 13% free unlimited exchange.
Only 8% of banks intend to charge for the service. The situation is fairly uniform in seven
Member States (Belgium, Spain, France, Ireland, Italy, Austria and Finland), where all the
banks questioned are planning limited exchange free of charge.

1.2.4.2. Exchange of notes after the end of the dual circulation period

Some 57% of the banks questioned will offer free unlimited exchange for their customers
(usually by deposit in their account), while 8% will offer free limited exchange. Nearly one
bank in four (22%) will charge for the service; 11% of banks will refuse all exchange,
while 3% have not yet taken a decision. Where it is planned, exchange will generally be
possible until June (33% of cases), December (14%) or indeed later (22%).

1.2.4.3. Return of national notes and coins to banks by traders

Some 83% of the banks questioned will refrain from charging handling fees for the return
of national banknotes by traders in 2002. This high score bears witness to the goodwill
shown by the banks, which are waiving their usual charging rules. Only 11% intend to
charge fees, while 6% have not yet taken a decision on this point. Fees will be charged by
most Finnish banks, some Austrian banks and a very few German banks; a few Dutch
banks will also charge for notes returned after the end of the first week in January.

Nearly 76% of the banks questioned do not intend to charge handling fees for the return of
coins either, despite the difficulties involved (counting, storage, etc.). Only 18% will
charge such fees, while 6% have yet to decide on the matter. Fees will be charged by most
Finnish banks and a very few German banks, but by none of the banks questioned in
Belgium, Greece, Spain, France, Ireland, Luxembourg and Portugal. The Netherlands is a

18

Idem.

14

special case as coins in that country are to be collected direct by the central bank and will
therefore not pass through the commercial banks.

The arrangements for the exchange of national notes for euros and the return of
national notes and coins by traders are generally in line with the Commission's
recommendations and are favourable to customers. These examples of good practice
should be generalised throughout the euro area.

1.3.

Preparations by administrations

1.3.1. National administrations

Member States' legislative activities are reported in detail in Annex 1, but here is an outline
of the main areas where new legislation has been introduced.

The main tasks in hand include the early changeover of utilities bills, public contracts and
payslips. Other measures have to do with the training of civil servants and more generally
the transition process in each individual administration. The Member States preparing an
early changeover of main utilities bills are Belgium, Spain, France, Italy, Luxembourg,
Portugal and Finland. Legislation providing for an early changeover in public procurement
has been enacted in Greece, France, Italy, Ireland, Luxembourg, the Netherlands and
Portugal. Civil servants already receive their salary statements in euros, in one form or
another, in Spain, France, Ireland, Italy, Luxembourg and Portugal (see Annex for further
details). For example, all public servants in France (some 2.8 million government workers
and armed forces personnel) have been paid in euros since July by bank transfer (46% of
France's public expenditure was denominated in euros at
the end of August). The
changeover of civil servants' payslips began in October in Italy and will be completed by
the end of November in Ireland.

Most of the administrations have begun training their staff, and the remainder will do so by
the end of the year. In Greece the training of civil servants got under way after Easter;
ministries (chiefly tax departments), prefectures, regional and local authorities, social
security services, banks and trade associations have received copies of a brochure entitled
"From the drachma to the euro". In France a special effort is being devoted to the training
plan for civil servants, who will all attend at least a half day's euro training before the end
of the year (67% of them have already received training). In Portugal the process of
training instructors has been completed. Belgium is already running courses for cashiers in
the public administration who have contact with the public.

initiatives

Other
relate to the general changeover arrangements. Action by the
Member States was already described in the Commission communication of 3 April;19 the
following information is available on ongoing activities: in Greece the Ministries of Public
Administration, Economic Affairs and Finance have decided to set up a task force with the
remit to implement the guidelines issued by the national Euro Committee, to adopt the
action plans for the public administration, the private sector and the banks for steering the
changeover and dealing rapidly with any problems arising,
to plan information and
education programmes on the euro and to prepare the relevant documents. Two Finance

19

COM(2001)190, 3.4.2001.

15

Ministry information sheets, one concerning the changeover of the budget division and the
other intended for retired civil servants, have been distributed.

In Spain two special working parties have been set up within the public administration, one
responsible for monitoring the rounding of official charges and tariffs in euros and the
other for the early changeover of payslips. Scales of social security benefits have been
produced both in euros and in pesetas. Following an agreement between the Ministry of
Economic Affairs and representatives of public-sector enterprises, public administrations
in Spain have been operating in euros since 15 September.

In Luxembourg regional meetings held in June with local government representatives
the
focused on the treatment of public contracts still outstanding on 31 December,
changeover of local government bodies to the euro and their
in the
communication campaign. The preparation of IT systems is deemed satisfactory.

involvement

In the Netherlands the central government should normally be ready for the switch to the
euro. Preparations (including trials) were due to have been completed by 1 July. Checks
carried out by the Finance Ministry show that that deadline was met. Conversion of
existing systems will mostly take place in late 2001. The health services are still facing
difficulties, and the Finance and Health Ministries have issued guidelines to assist the
sector (nursing homes and old people's homes, healthcare services, etc.). A survey is also
being carried out to take stock of preparations in schools.

In Portugal ministerial departments are putting the final touches to preparations with
regard to rounding and the conversion of historical data. A new initiative called "Euro
Municipíos" was launched in January by the national Euro Committee in partnership with
one of the major Portuguese banks. It has set up a network of Eurotrainers covering over
85% of local authorities. The Euro Committee is currently in the process of certifying the
local authorities well-prepared and "ready for the euro". The final changeover plan for the
financial sectors of the public administration was approved in early May: after outlining
the changeover schedules, it deals with a number of issues falling within the responsibility
of the Finance Ministry, lists the matters still outstanding and puts forward proposals for
settling them.

In Finland many citizens will in the months ahead begin to receive bills in euros. These
will be issued mainly by utilities since local authorities will gradually be switching their
accounting and IT systems over to the euro during the autumn.

In Italy the Euro Committee has published a document containing the guidelines regarding
the Government's final switchover to the euro.20 The local authorities can also use it as a
frame of reference.

The national administrations are on the whole ready. They could play a more active
role by making the early switchover of public contracts and civil servants' salaries
systematic, along the lines of what has been decided in some Member States.

20

Available at: www.tesoro.it.

16

1.3.2.

Local government

The legal framework for the cash changeover has been established uniformly by the twelve
participating Member States: the 70 000 local authorities in the euro area will switch over
their accounting systems to the euro on 31 December. Nevertheless, in line with the
principles of subsidiarity and the independence of local government, many initiatives are
being taken by local public administrations with a view to facilitating the necessary
internal administrative adjustments and developing diversified communication activities at
local level.

Administrative preparations are being stepped up in small local government bodies. Larger
regional and local administrative entities are increasingly becoming involved in local
communication campaigns to help members of the public make the transition.

1.3.2.1. Stepping up internal preparations for the introduction of euro notes and

coins

National information campaigns on the euro have in practice prompted local authorities to
speed up their preparations.

€

The adaptation to the euro of their IT systems for financial management has benefited from
this trend. One of the French regional councils decided, for example, to test in June the
switchover of a
332 million budget in order to familiarise its staff ahead of the final
changeover. The operation lasted two weeks, instructors initiated staff of the départements
involved in using the new financial software, and civil servants from all departments were
able to attend the training sessions. In Germany the adaptation of municipalities' IT
systems is supervised by the Länder: as of July only 2% of computer systems were still
causing difficulties. In the Netherlands the Finance Ministry is monitoring the situation
closely to ensure that the necessary IT adjustments are made for the payment of welfare
benefits; should data-processing problems arise during the changeover period, an
emergency manual procedure has been devised to ensure that those entitled continue to
receive welfare benefits.

Throughout the euro area, special attention needs to be devoted to adapting payment
terminals in the local public sector.

The adaptation of automatic machines is also continuing at a satisfactory pace overall.
Most of the necessary orders have been placed. In Ireland car parks are ready to accept
both currencies during the dual circulation period. Cities such as Paris are introducing
differentiated parking charges to the advantage of users in order to facilitate residential
parking and limit car use. The local authorities in France that have opted for early
following the decision to pay central
changeover are paying their staff in euros,
government employees in euros from July onwards. However, most local government
employees will have their salaries paid in euros from 1 January 2002. Records of
conversion of public contracts to the euro are being kept by local authorities in France to
avoid disputes.

The conversion of local tariffs and charges to the euro in a manner that is neutral or
advantageous to users is a sensitive issue calling for special attention from public
administrations at national and local levels. Very precise ministerial instructions have been
issued in all euro-area countries to ensure that local government sets an example.

17

Cooperation between municipalities in preparing for the euro is another instance of good
practice that is spreading. Such cooperation makes it possible to gauge difficulties on the
ground and share possible solutions. In Charente-Maritime (France) "facilitators" hired by
the chambers of commerce, trade, etc. with financial support from the regional council
will, over a six-month period, assist many municipal consortia with their adaptation work.
A number of towns in the Netherlands are giving prior consideration to corrective action
that could be taken by each local authority. In Belgium, the communities and the regions
are developing the measures needed to adapt legislation and the framework for the local
authorities to switch over to the euro.

1.3.2.2. Local euro communication activities

The Eurobarometer survey shows that users spontaneously expect assistance first from
banks, and then from family and friends,
in familiarising themselves with amounts
expressed in the new currency. Vulnerable sections of the population, on the other hand,
have their own expectations vis-à-vis local authorities.

Regional and local authorities are increasingly responding to those expectations. In
September Paris and Berlin were launching information campaigns on the euro involving a
combination of visual material and outreach activities. The province of Vizcaya is actively
supporting the information drives of municipalities in its territory to ease the transition to
the euro in rural areas. In Dunkirk hands-on workshops are being held for groups of people
seeking practical information about the euro in disadvantaged urban areas.

Italy has launched a major programme called "The
uro in small towns" bringing together
the Euro Committee and a major consumer body to organise Euro days in some 3000
municipalities. These activities are aimed at the general public, particularly vulnerable
groups and the elderly.

€

In Bonn, Sintra, Oporto, Antwerp, Lyon, Barcelona, Düsseldorf, Frankfurt, Venice,
Bologna, Turin and Milan 4 800 instructors will be working with blind, partially sighted,
disabled and elderly people until March 2002 under the "Euro Made Easy" programme
part-financed by the Commission. To familiarise pupils with the euro, local education
authorities have devised educational games: the city authorities in Venice, for example,
have installed games of this type on their website with the help of government departments
and chambers of commerce, trade, etc.

To help traders and businesses with fewer than twenty employees to prepare for the euro,
local authorities are supporting awareness-raising campaigns conducted by chambers of
commerce, trade, etc. Such campaigns are most commonly targeted at firms supplying
goods or services to local authorities. Other practical training activities cater for businesses
and local authorities brought together by chambers of commerce, trade, etc. For example, a
mobile platform is being used to hold meetings on practical topics to do with the euro in
seventeen municipalities in the Deux–Sèvres département (France).

A review of local government preparations points up very many examples of good
practice. Over and above such specific instances, it is though difficult to gauge the
real degree of preparedness of
local administrations. Serious doubts remain
concerning the state of progress in changeover preparations among the smallest
authorities.

18

1.4.

Preparations by the general public

National communication campaigns were redirected towards the general public at the
beginning of 2001, and this policy is beginning to bear fruit: the public's knowledge about
the basic facts of the changeover to the euro is improving but is still inadequate overall.

1.4.1.

The public's knowledge about the euro

The Commission regularly measures changes in the public's knowledge and its attitudes to
the euro by means of its Eurobarometer surveys. The most recent survey was carried out in
the second week of September.21

1.4.1.1. Knowledge of the changeover timetable

Knowledge of the date on which euro notes and coins will be brought into circulation
improved substantially in the second half of 2001: the percentage of wrong or inaccurate
answers has fallen from 40% to 22%. Knowledge of the date of introduction is below
average in five countries: Greece (38% errors), France (26%), Spain (28%), Austria (28%)
and Italy (29%). However, in Belgium, Germany, Ireland, Portugal, the Netherlands and
Finland the error rate is below 15%.

The breakdown of results by socio-professional category shows that members of the
professions, senior executives and white-collar workers are, on the whole, better informed.
Against this, a special information drive is necessary for farmers, the unemployed and
persons running a household.

The European public is still not very sure about the length of the period of dual circulation:
75% of people living in the euro area are still unable to give a correct answer. The national
communication campaigns are having little effect
for the moment. The degree of
unawareness about the timetable is particularly marked in Germany (95% wrong answers),
Greece (86%), France (88%) and Ireland (88%). By comparison, the Dutch (45%), the
Austrians (55%) and the Finns (53%) are much better informed.

More than one in two of the people living in the euro area tend to overestimate the length
of the period of dual circulation and one in ten to underestimate it. One in seven of the
people questioned is unable to give an answer.

1.4.1.2. Knowledge of the practical aspects of the changeover to the euro

Most of the people living in the euro area now know the exact conversion rate of the
national currency into euros (59%, compared with 15% at the beginning of the year). With
a margin of error of +/- 1 euro cent, accurate replies were 68%, a figure that rises to 82%
with a margin of error of +/- 5 euro cents.

The results vary considerably from country to country. The percentage of the population
knowing the exact value of the euro is just under 83% in Portugal, 75% in Luxembourg,
77% in Spain, 81% in Belgium and 78% France, but only 36% in Germany, 49% in Italy,

21

Eurobarometer
www.europa.eu.int/comm/economy_finance/document/euro/barometers/brmtr_en.htm

"Attitudes

No 98/4,

euro".

Flash

the

to

Available

at:

19

49% in Finland and 42% in Greece. The errors generally tend to overestimate the value of
the euro.

On average, 16% of the public in the euro-area countries concerned do not yet realise that
euro notes can be used throughout the euro area: the highest percentages are in Greece
(27%) and in Portugal (21%). Conversely, over 90% of people in Belgium and 95% of
people in Luxembourg understand this basic principle.

The progress made in informing the public is substantial but still insufficient. The
preparation for the changeover to the euro cannot be judged by normal criteria:
everyone must know the few key facts essential for a smooth changeover to the new
currency (date on which it will be introduced, conversion rate, length of the period of
dual circulation). The efforts already made by Member States must therefore be
continued and stepped up.

1.4.2.

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 an early changeover of bank accounts and
non-cash means of payment 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 euros22 from
the third quarter of 2001.

1.4.2.1. Dual pricing

Dual pricing has become much more widespread since the start of the year. It has been
compulsory for all firms and commercial establishments in Greece since March and for
most of them in Austria and Portugal since the beginning of October. It will also be
compulsory from 15 December in Belgium. The results achieved in the countries where
pricing in euros remains optional are, on the whole, very high for large retailers (e.g. 95%
in French supermarkets,23 89% in Belgian supermarkets24 and 97% in Irish supermarkets25)
and fairly high in commercial establishments (e.g. 69% of garages in France and 62% of
hotels in Belgium). In general, the conversion rules are being complied with satisfactorily
(e.g. average error rate of 2.2% in France).26 To date, over 90% of consumers say that they
have already seen prices in euros27 in supermarkets and almost 80% claim to have done so
in commercial establishments.

22

23

24

25

26

27

For distance sales and sectors in which non-cash payments account for the bulk of transactions.
DGCCRF. Survey, August 2001. Available at www.minefi.gouv.fr .
Ministry of Economic Affairs. Available at: www.mineco.fgov.be/euro
Office of the Director of Consumer Affairs.
In Portugal, from 1 October the Economic Inspectorate has been required to monitor compliance
with the conversion rules and the requirement to display prices.
Eurobarometer. 55.2. "Europeans and the euro", European Commission. Questions asked in
July 2001.

20

But dual pricing has as yet had a limited effect on the learning of a new scale of values in
euros: the proportion of consumers who have memorised prices in euros is rising (34%,
compared with 20% at the start of the year) but is still low overall. The scores in the
participating countries are fairly similar, with the exception of Ireland and Portugal, which
In
stand out because of
socio-professional terms, the memorisation of price references is slightly more frequent
among the professions and senior executives (44%) and much less frequent among persons
running a household (25%). On the whole, fairly scant attention is paid to prices in euros:
fewer than one in ten look at them systematically, while just over one in three do so
occasionally.28

(22% and 26% respectively).

fairly low scores

their

These results will probably improve with the development of reverse pricing and the
gradual changeover of pricing policies.29 The joint statement by representatives of
European consumers and representatives of traders and SMEs adopted on 2 April 2001 in
Brussels provides for the euro price to be displayed more prominently than the price in
national currency, and for psychological prices to be set in euros between September and
the beginning of December 2001. Portuguese legislation requires the euro price to be
displayed more prominently than the price in national currency, a practice which is also
recommended by the National Consumer Council in France. Some large retailers have
started to set their prices in euros, but it is too soon to gauge the effect of the measure.

1.4.2.2. The creation of a euro environment

Apart from the setting of prices in euros, major components of consumers' everyday
environment are in the process of being changed over to the European currency in many
participating countries. These include:

- public utility bills. The public utilities in France started to change their invoicing as far
back as January. Their counterparts in Belgium and Italy followed suit in July, those in
Spain and Luxembourg in September and those in Portugal in October. On the whole, these
operations have passed off very successfully.30 The changeover by social security funds is
also getting under way in some countries (e.g. in October for sickness insurance in France).

28

29

30

Idem.
In the Netherlands, however, the National Forum has decided not to invert prices for fear of
confusing consumers.
Electricité de France is the first European public utility to have changed over to the euro (in
January). The experience has been as follows: in January 2001 EDF received 3000 cheques on
which the amount had been entered in euros when it should have been in French francs and vice
versa and 50 000 settlements by cheque where the amount invoiced in euros had been entered on a
French franc cheque (error rate of 10%). As a proportion of all payments and taking all means of
payment together, payment errors totalled 1.3% of the volume of receipts in January; this figure fell
to 0.3% at the end of March. The billing department contacted all the customers concerned
individually to ask them to pay the balance. No penalty was imposed on persons who had made a
mistake. To reduce the error rate, the arrangements for presenting bills was improved twice, in
January and April. Some 60000 additional telephone calls were received in call centres (an increase
of 1.3%), 90% of them from private individuals. In all, 57% of calls from private individuals related
to conversion problems, 18% to methods of payment, 17% to various points (legibility of the bill,
etc.), 6% to the legitimacy of the change and 2% to the continuity of contracts. Calls from
professionals broke down as follows: 37% related to conversion problems, 19% to accounting
questions, 17% to methods of payment, 17% to the legibility of the bill, 6% to the legitimacy of the
change and 4% to the continuity of contracts. A survey conducted among customers in February,
March and April showed that 61% had noticed the change of invoicing currency [NB. Many people

21

- payment of wages and salaries: Like European, French, Italian, Spanish, Irish and
Portuguese civil servants, a growing number of wage and salary earners, particularly in
large firms, are now paid in euros;

- changeover of bank accounts and non-cash payments: This initiative began in Belgium
and France and has now been followed in virtually all participating Member States
following the Commission recommendation of October 2000. This early changeover is
likely to have a significant effect on familiarisation with the euro, in particular in countries
where cheques are widely used (writing out a cheque in euros clearly helps to memorise
benchmark prices more than card payments do);

- start of the changeover of measuring equipment. Some countries including France,
Finland and Belgium have already started to change petrol pumps over to the euro.

On the whole consumers are still unfamiliar with the euro. However, this situation
should change rapidly for the better in the countries which have decided to bring
forward measures to immerse the public in a euro environment. These measures
should be copied elsewhere, in particular in the countries which are still lagging way
behind (e.g. the Netherlands and Austria), so that consumers are not disoriented
when notes and coins are introduced.

1.4.3.

The concerns of Europeans in relation to the euro

On the whole, most people living in the euro area are confident in their ability to acquaint
themselves with the new currency: one in seven (16%) does not expect any difficulty,
whereas more than one person in two (57%) expect difficulties to be only temporary. Only
12% of consumers are expecting to encounter serious difficulties. Confidence is
particularly high in Austria (32% of consumers think they will have no difficulty at all),
Luxembourg (29%) and Germany (24%), whereas consumers in Spain (11%), France
(10%) and Italy (10%) are much more apprehensive.31 The survey conducted in July on
"Europeans and the euro" identifies the main areas of concern.

1.4.3.1. Personal problems connected with the use of the euro

A significant number of consumers (34%) are afraid of not recognising euro notes and
coins,
this being a subject of particular concern in Greece (46%). The Eurosystem
campaign launched on 30 August precisely to promote euro notes and coins will probably
reduce these percentages very significantly.

Almost 43% of consumers are afraid of having difficulty in comparing prices between
shops. Some 47% think they will have problems remembering prices in euros. A majority
of the public share this concern in Greece (55%), France (55%), Ireland (55%) and Italy
(56%). The Dutch, on the other hand, are particularly confident (25%).

pay by direct debit and do not pay any attention to the bill], 79% stated that they were not worried
by the change, 30% experienced problems in paying the bill and 81% have a positive image of EDF
for making the change. It should be noted that, despite the complete neutrality of the conversion of
charges, 18% of customers had the impression that
their
electricity. Source: EDF.
Eurobarometer 55.2 "Europeans and the euro", European Commission, July 2001.

they were paying more for

31

22

A clear majority of individuals (56%) are afraid of making mistakes in mental arithmetic.
Somewhat curiously, this concern is not closely correlated with the complexity of the
exchange rate: although they have a simple approximate mental benchmark (divide by
2000), the Italians are the most concerned (67%), far more than the Spaniards (57%), who
are nevertheless somewhat disadvantaged by an exchange rate which is hardly conducive
to mental arithmetic (1 euro = PTA 166.386). The results vary sharply as a function of
socio-professional category: while 34% of executives are afraid of making mistakes, the
proportion is as high as 64% among pensioners and 67% among persons running a
household. Women are generally far more worried than men (63% compared with 47%).

Lastly, 41% of consumers are afraid of having difficulty in understanding bills, payslips,
bank statements, etc. This concern is particularly strong in Italy (57%), Greece (50%) and
Ireland (51%)

1.4.3.2. Apprehension about malpractices

One of the main sources of concern for consumers is price rises when the euro is
introduced, a concern today shared by two thirds of the European public. The most worried
are the Italians (69%) and the French and the Germans (68%), while the most sanguine are
the Luxembourgers (53%).

A majority of people living in the euro area (52%) are afraid of being cheated by traders
when receiving change. This concern, which also indirectly reflects the level of confidence
between consumers and retailers, is particularly strong in Italy (62%) and France (59%)
and is relatively weak in Finland (37%) and the Netherlands (35%). It is also closely
correlated with socio-professional category: while moderate among executives (38%), it is
as high as 57% among the unemployed, 60% among pensioners and 62% among persons
running a household.

The concerns connected with the changeover to the euro tend to grow as its date
approaches and the public becomes aware of the practical difficulties. Since, apart
from national differences, women and the socially disadvantaged are on the whole
relatively worried, participating Member States should direct a specific information
effort at them.

1.4.4.

The use of the euro by consumers

Generally speaking, use of the euro by consumers is as yet fairly low.

1.4.4.1. Euro bank accounts

It is unusual for consumers to decide spontaneously to switch their operations to the euro.
At the end of June, i.e. before the start of the early changeover operations, only 3.2% of all
private accounts were in euros and almost one new account in fourteen was being opened
in euros, compared with one in thirty-three at the end of 2000. The situation probably did
not improve by itself: in July 91% of consumers said that they wanted to wait until 2002
before changing their accounts.32

32

Eurobarometer 55.2 "Europeans and the euro", European Commission, July 2001.

23

The new figures are not yet available, but it is very probable that today virtually all private
accounts are in euros in France, Belgium, Spain and Luxembourg and that a majority of
accounts are also in euros in Germany and Portugal. The proportion of euro accounts is
probably still
in a minority in Austria, Finland and the Netherlands and virtually
non-existent in Ireland.

1.4.4.2. Euro payments

Use of the euro by individuals was up very slightly in volume terms in the second quarter
(1.9% compared with 1.4%) but had still not recovered to its level at the beginning of
2000 (2.4%).33 The number of operations is above the 5% mark in only two countries:
Belgium (5.5%) and Luxembourg (6%). The same trend was discernible in the value of
payments, up from 6.2% to 8.8% (compared with 8.9% in the first quarter of 2000). It is
still often the case that a trader's payment terminal will not allow a euro transaction to be
carried out.34

The situation will start to change in the next few months as a result of the advance
changeover of non-cash means of payment. While it is unlikely that it will lead to a
massive increase in card payments in euros (in practical terms, it is generally the trader
who chooses the currency in which the transaction is carried out), the proportion accounted
for by the euro should increase sharply in countries where cheques are widely used once
they can be written in only one currency.35

When asked why they make little use of the euro, consumers put forward several
arguments: 28% are afraid of being confused, 56% point out that they do not have a euro
account, 54% do not have a euro chequebook, 44% cite the risk of refusal by traders, 34%
did not know they could use the euro and 77% ... are simply not interested.

"Voluntary" use of the euro by consumers remains very low. Only an active policy of
advance changeover of means of payment is likely to persuade them to become
acquainted with the euro before the introduction of notes and coins.36

1.5.

Information campaigns

1.5.1.

Action by the Commission and the Member States

The euro information policy has two objectives: gaining the population's support for the
euro and facilitating the transition by informing individuals about the practical implications
of the introduction of the euro as legal tender in their daily life.

Many surveys and studies have been conducted in the Member States and a Eurobarometer
flash poll is carried out by the Commission every six to eight weeks in order to monitor the

33

34

35

36

Source: Quarterly review of the use of the euro, No 7, European Commission, July 2001. Available
at: www.europa.eu.int/comm/economy_finance/document/misc/eurouse_en.htm
In July 2000, for example, some 625 000 payment terminals had still to be adapted in French
commercial establishments. Source: CB Mag, July 2001.
For example, a French consumer receiving a euro chequebook cannot write cheques in francs.The
French Government has set itself the target of 70% of consumer payments being made in euros by
the end of the year.
In the Netherlands the national forum has decided not to follow the Commission's recommendations
but to concentrate the changeover at the end of 2001.

24

trend of opinion (the questions are always the same). The most recent flash poll (conducted
in September 2001) shows that 42% of the population still believe they are not sufficiently
well informed about the euro. However, there are now fewer than one hundred days to go
before
-Day. This does not necessarily mean that people will seek information
themselves. Therein lies the immense challenge which must be met in the next three
months: to reach out to the public.

€

This brief stocktaking exercise distinguishes between the euro information campaigns
implemented by the national authorities,
the campaign launched by the ECB and
Eurosystem, and the initiatives taken by the European Commission.

1.5.1.1. Information campaigns in the participating Member States

The slogans of the euro campaigns, which have been launched in all the euro-area
countries since the beginning of 2001, shed light on the key theme in each country.

Belgium

Germany

Greece

Spain

France

Ireland

Italy

"Soon, the euro will be replacing
the franc"

Bientôt l'euro remplace le franc
Straks vervangt de euro de frank

"True values win through: the
euro"

"Euro: promising future"
"I'm with the euro too"

"The euro, start counting with
it/on it"

Echte Werte setzen sich durch.
Der Euro
Εύρωτο Μέλλν
Και εγώ Ευρώ

(Evrosto Mellon)
(Ke ego Evro)

Euro empieza a contar con el

"The euro is easier together"

L'euro, c'est plus facile ensemble

Think euro- the change is in
your pocket
Smaoinigh euro - is I do phoca-
sa a bheidh an t-athrú

L'euro entra nel quotidiano

"The euro becomes an everyday
event"

Luxembourg

"Ready for the euro"

Prett fir den euro!

Netherlands

"The euro is for us all"

De euro wordt van ons allemaal

Austria

Portugal

Finland

"Welcome to the euro", no overall
slogan but targeted slogans

Willkommen Euro

"The euro: the right answer"

Euro. A resposta certa

"Euro into practice"
(not a slogan but an objective)

Euro tas I bruck

Euro käyttöön

ECB/Eurosystem "The euro, our currency"

L’euro notre monnaie

25

Commission

"The euro: the European Union in
your hand"

L'euro : l'Union européenne
dans votre main

The budgets earmarked by the Member States are also substantial and indicative of the
scale of the campaigns, which will be stepped up even more in the last four months of 2001
and the first months of 2002.

26

The table below shows the amounts specified in the partnership agreements signed with the
Member States.

AGREEMENTS WITH THE MEMBER STATES

Commission share

Ministry share

Country

Previous
years
1996-2000

2001

Commission total Previous years

2001

Ministry total

Total

1996-2000

1

2

3=1+2

4

5

6=4+5

7=3+6

Belgium

3 399 000

1 150 000

4 549 000

3 541 000 3 450 000

6 991 000

11 540 000

Germany

20 929 000

4 500 000

25 429 000

21 742 000 4 500 000

26 242 000

51 671 000

Greece

1 921 000

1 450 000

3 371 000

1 921 000 1 550 000

3 471 000

6 842 000

Spain

13 367 000

4 000 000

17 367 000

13 649 000 4 000 000

17 649 000

35 016 000

France

16 501 000

3 900 000

20 401 000

21 047 000 3 900 000

24 947 000

45 348 000

Ireland37

2 006 000

625 000

2 631 000

3 892 000 2 875 000

6 767 000

9 398 000

Italy

13 942 000

3 849 000

17 791 000

21 231 000 21 000 880

42 231 880

60 022 880

Luxembourg

265 000

110 000

375 000

315 000

600 000

915 000

1 290 000

Netherlands

4 521 000

1 275 000

5 796 000

40 588 000 21 414 000

62 002 000

67 798 000

Austria

3 292 000

660 000

3 952 000

7 471 000 2 271 000

9 742 000

13 694 000

Portugal

3 643 000

1 050 000

4 693 000

3 682 000 1 050 000

4 732 000

9 425 000

Finland

2 089 000

700 000

2 789 000

2 487 000

700 000

3.187.000

5 976 000

Sweden

988 000

550 000

1 538 000

988 000

551 000

1.539.000

3 077 000

86 863 000

23 819 000

110 682 000 142 554 000 67 426 880

209.980.880 321 097 880

NB. The amounts shown do not include other budgets devoted to euro information by national administrations and/or
institutions.

The media plans for all the campaigns envisage in-depth coverage by the principal media
and in particular television. Coordination between Ministries, the Eurosystem and the
Commission has produced an overall media plan which avoids any overlapping of
messages and ensures coherent programming. Each player will keep to the specific
objectives assigned to it in the messages broadcast.

The table below indicates the television media plans for each country and for the ECB.

37

The total amount allocated to publicity campaigns in Ireland is estimated at

€

18 million.

27

2001

2002

2

0
0
2
-
1
0
0
2

5
3

k
W

6
3

k
W

7
3

k
W

8
3

k
W

9
3

k
W

0
4

k
W

1
4

k
W

2
4

k
W

3
4

k
W

4
4

k
W

5
4

k
W

6
4

k
W

7
4

k
W

8
4

k
W

9
4

k
W

0
5

k
W

1
5

k
W

2
5

k
W

1

k
W

3

k
W

4

k
W

5

k
W

6

k
W

7

k
W

8

k
W

9

k
W

Belgium

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

ECB/
Eurosystem

Cfr. Eurosystem campaign / European Central Bank

As regards other euro information activities in the Member States, several initiatives
should be stressed, such as those using mobile information units - lorries, trams, buses, etc.
- which criss-cross the regions and go out to meet the public. Every country has set up a
euro website and nearly all of them have a "freephone" service for persons wishing to ask
questions about
the euro. Several Member States have also produced written and
audio-visual information for immigrant communities.

The "Euro Made Easy" programme, devised by the Commission in conjunction with
associations and representatives of the disabled, has been widely incorporated into the
national programmes and the programme material has been reproduced in tens of
thousands of copies. With the start of the 2001-02 school year, the national education
authorities have launched numerous initiatives to ensure that euro issues form part of
school curricula.

Steps have also been taken to make up for the time lost by a large number of small firms in
their preparations for the changeover to euro notes and coins.

28

1.5.1.2. The Commission's action programme

The Commission's action programme for the weeks and months ahead is based on four
principles:

-

-

-

-

complementarity with the other bodies involved;

continuity of measures in the interests of effectiveness;

partnership with the national authorities and organised civil society at European
level;

search for maximum coordination on public communication campaigns.

None of the campaigns it has planned would be launched if the Commission did not take
the initiative, since they concern the European dimension of information on the euro. To
that extent, they complement the actions of the other bodies involved, in that they have
been designed in partnership and coordination with them. They will rely both on
transnational media (broadcast by satellite and cable) and on the local press. In this way,
the Commission expects to reach sections of the public not directly reached by the national
campaigns and which have difficulties in accessing information.

The Commission intends to continue implementing the conclusions of the Nice European
Council as regards organising information campaigns on the changeover to the euro around
common dates. Activities are planned in particular on 31 December 2001 to celebrate the
introduction of notes and coins. Lastly, it will step up the distribution of various documents
which have proved effective and for which there is a huge demand: posters, pamphlets for
children, CD-ROMs, exhibitions, kits containing dummy notes and coins, "Euro Made
Easy" devices and games,38 providing information on the European dimension of the euro.
The Commission will also step up its euro information programme for third countries.

The campaigns launched by the Member States and the Commission will be stepped
up sharply in the coming months. Time is short for attaining the objective: ensuring
that everyone is aware of the key dates and basic principles of the changeover to the
euro.

1.5.2.

The Eurosystem campaign

The Euro 2002 information campaign is being run by the ECB and the twelve national
central banks of the euro area. Its target audience is, firstly, the population of the euro area
and, secondly, populations beyond. It has been running since mid-2000 and will continue
80 million. The campaign itself is being
until spring 2002. The campaign budget is
conducted in the eleven official languages of the European Union. It is complementary to
the national campaigns in each participating Member State. It is a unique and specialised
campaign which focuses on the practical aspects of the introduction of euro notes and
coins, and in particular on the following four key issues:

€

–

the detailed visual appearance of the euro notes and coins,

38

Available at www.europa.eu.int/euro in the section "Citizens & Consumers".

29

–

–

–

their main security features,

the denominations of euro notes and coins, and

the changeover arrangements.

The principal components of the campaign are: a mass media campaign, the Internet – a
euro-dedicated website in all eleven official Community languages (www.euro.ecb.int) - a
public relations and press programme and the partnership programme. Under the umbrella
of the information campaign, an extensive training programme is also under way.
Particular efforts are directed towards disabled people, in particular the visually impaired.
There has been extensive cooperation with the European Blind Union, both in the design of
the euro notes and coins and in the production of suitable training materials, in the form of
a brochure in three formats (large print, audio and Braille) and dummy notes (distributed
by the Commission). In order to assist the visually impaired further in recognising the euro
notes and coins and to help them to distinguish between the various denominations, some
€
1 million has been allocated to the production of 400 000 specially designed cash-testing
devices. These devices will be made available to the target group via the network of the
European Blind Union.

Outside the euro area, the campaign will run advertisements in the international press and
on television in December. The international media campaign includes in-flight advertising
(magazines and videos), as well as information provided at major European airports. In
addition, the international version of the public information leaflet will be translated into
initiatives
twenty-three other languages. This effort
undertaken by national central banks in areas where their national currencies (legacy units)
traditionally circulate.

is being backed up by bilateral

The Eurosystem campaign will enable the general public to recognise euro notes and
coins far more readily. In order to be fully effective, it would gain by being relayed at
local level by the public authorities, chambers of commerce and trade associations
(small posters, etc.).

2.

WORK IN PROGRESS AND EXAMPLES OF GOOD PRACTICE

This section will highlight six important topics, ranging from the risk of price increases to
the production of euro notes and coins.

2.1.

Work in progress

2.1.1.

Emergency plans and security measures

The introduction of euro notes and coins could be jeopardised by unexpected incidents or
weaknesses in the plans for the changeover. The risks take various forms and are not
necessarily the same in all Member States. There are, however, a number of common
problems which most, if not all, Member States are preparing to tackle, such as storage and
transport, cash shortages and problems of communication, quite apart from the general
security risk associated with each of these questions.

30

2.1.1.1. Storage and transport of cash

Large quantities of notes - denominated in euros or national currencies - will have to be
stored. All countries consider existing facilities to be sufficient for storing notes, except
Portugal, which has adapted existing air force bases to provide additional storage space.

In the case of coins, however, all countries except Greece expect to create new facilities.
In Belgium the authorities have rented a warehouse to store all the coins withdrawn from
circulation. In Germany the branches of the national central bank will arrange for
additional storage sites, some of them in army barracks. In Spain euro coins are being
stored in a central, purpose-built depot with sufficient capacity for euro and peseta coins.
They will be transported from that depot to 80 regional depots. If necessary, more depots
will be set up. In France stocks of euros will be held in specially adapted centres and,
wherever possible, in local storage depots where cash-in-transit firms will be able to obtain
supplies without having to travel excessively long distances. In Ireland a new coin storage
facility has been built at the national central bank (the Mint) and is already in use. In Italy
euro coins will be temporarily held in central depots and moved in the course of 2001 to
special regional or provincial sites responsible for distributing euro coins and collecting
lira coins. In Luxembourg the supplier of the Luxembourg euro coins, the Royal Dutch
Mint, is responsible for the security of transport from its facilities to the Luxembourg
border. The Luxembourg State then takes over responsibility for security from the border
to a secure military site. In the Netherlands the euro coins are stored in a warehouse newly
built by the national central bank, which will also be used to store guilder coins after
withdrawal. In Austria the Mint is temporarily providing a new facility for frontloading
euro coins and receiving schilling coins after their withdrawal. Portugal has adapted
existing facilities (air force bases) for storage purposes.

Problems relating to transport capacity and security

Member States will monitor very closely the transport of cash and have, in most cases,
entrusted responsibility for this to the Ministry of the Interior. Several have drawn up
special contingency and transport plans with the banks and cash-in-transit firms (Belgium,
the Netherlands, Austria, and Portugal). Some
Germany, Spain, France, Italy,
countries plan to use the army or police to escort transports (France, Spain, Ireland, Italy,
the Netherlands and Austria). In other countries escorts will be provided if there is
thought to be a risk.

In Belgium the transport plans of cash-in-transit firms should be lodged with the national
bank. In Spain decentralised storage points have been set up throughout the country. If
necessary (i.e. if cash-in-transit firms encounter storage problems), the national bank will
provide additional transport capacity and increase the frequency of deliveries, and use will
be made of the rail network in addition to road transport. In the event of strikes or shortage
of capacity in Greece, the Bank of Greece may require each bank branch to hold certain
minimum stocks. Priorities will be set for supplying remote areas. The police and the army
will provide additional transport capacity, including cargo planes. In Ireland the national
bank will transport cash to the banks either directly or via distributors’ depots. It will
supply the largest retailers either directly (in the case of coins) or at the request of
distributors on the basis of orders placed by banks. Otherwise, banks and retailers will
arrange transport between themselves. In the Netherlands the national bank has offered to

31

transport banknotes to banks from its premises during a six-week period. The bulk of
deliveries will go to head offices of commercial banks, which will then distribute them to
smaller branches. Retailers currently supplied by cash-in-transit firms will continue
receiving cash via their usual channel during the changeover. Other retailers will be
supplied with euro coins via a delivery service set up specifically for the euro changeover.
They will receive their banknotes via their bank.

2.1.1.2. The risk of cash shortages

A combination of factors could lead to bottlenecks in the distribution of banknotes and
coins: problems in the transport and storage of cash, unexpected emergencies or simply a
rush to exchange national currency for euros, or indeed all of these things together. A
shortage of small-denomination banknotes could jeopardise the smooth operation of the
changeover.

Measures to avert such a situation include additional distribution of banknotes, extending
bank opening hours (Germany, Spain, Italy, Luxembourg, Portugal and Finland),
increasing capacity for over-the-counter transactions and advising the public not to rush to
banks to exchange national currency during the first days of 2002 (Italy, Portugal and
Finland). Starter kits for retailers and the general public should also help to alleviate initial
pressure.

In Belgium the national bank plans to make additional starter kits and bundles of
€
5 banknotes available. In Greece any surplus national banknotes in one national bank
branch will, if necessary, be transferred to neighbouring branches or the central office.
Branches have already been classified in terms of capacity, and a transfer system has been
5 notes and coins only,
worked out. In Italy small retailers will be sub-frontloaded with
20 notes. Supermarkets will be sub-
10 and
while large retailers will receive
€
€
20 notes from 1 November.
frontloaded with coins from 1 October and with
The Bank of Italy is preparing nearly a million and a half bundles of notes (containing 25
€
5 notes) for businesses. In Ireland, those receiving social benefits in cash will be paid

10 and

5,

5,

€

€

€

€

€

mainly in small denominations.

Capacity will be increased in Luxembourg, where special exchange points will be set up.
In Portugal measures will be taken to increase over-the-counter capacity at the national
bank and commercial banks.

In an effort

If there is a run on the banks in France, the authorities will activate a crisis communication
they have organised extensive
procedure.
frontloading of starter kits and a preventive communication campaign. In Portugal a
contingency plan will operate in conjunction with the cash-in-transit firms and commercial
banks, and the national bank will monitor demand from all commercial banks.

to avoid such a situation,

2.1.1.3. Concentration of frontloading at the end of 2001

There is a danger that concentration of frontloading at the end of 2001 might cause delays
in the injection of cash into the economy and queues at banks. Most Member States plan to
monitor frontloading and sub-frontloading operations very closely. Greece and Italy plan
to extend bank opening hours and introduce weekend opening. Italy has brought forward

32

frontloading of notes by a fortnight compared with the original timetable. It will now begin
for banks and post offices on 1 November instead of 15 November. Germany has
introduced a system of financial bonuses to encourage the commercial banks to frontload
quickly. Some of these financial benefits may be passed on by the banks to the clients they
sub-frontload.

2.1.1.4. Communication problems

The problems that may arise during the changeover could all have repercussions on
communications between the public sector and the private sector and between the different
authorities in the Member States. Belgium, Germany and the Netherlands will ensure
that their national authorities issue consistent information to the public in the event of
disruption so as to avoid any contradictory statements harmful to the communication
process. In Austria the main partners will be able to communicate via encrypted lines, and
the central bank will be in contact with the police at all times.

The ECB and the national central banks have established a crisis communication
procedure. This is intended to allow the Eurosystem to react quickly and speak with one
voice in the event of crises at Eurosystem level. National crises would be handled at
national level. The ECB’s Cash Coordination Committee (Cashco) would be informed as
soon as a potential crisis was identified that could have an impact
the
Eurosystem. Any common statement or common wording would be prepared by the
Executive Board and approved by the Governing Council.

throughout

In response to initiatives by the Netherlands and France, the Commission has proposed the
setting up of a Changeover Information Network to provide a common framework for
handling overall changeover information during the period of the introduction of euro
banknotes and coins and for measuring the progress of the operation as a whole.
Participants in the scheme, which would be managed by the Commission and the EFC39
secretariat, would be officials appointed by the Member States, as well as the ECB and
Europol. In addition to the public authorities, sources of information would include the
Commission’s contacts with the private sector, Commission offices in the Member States
and any other available sources. Information would be pooled, processed and circulated to
the participants in the appropriate form. The informal Ecofin Council in Liège on 22
September 2001 agreed in principle to the creation of such a network.

2.1.2.

Progress in the fight against counterfeiting

With the introduction of euro notes and coins, action against counterfeiting in the euro area
will no longer focus on protecting the currencies of individual Member States but on the
common currency. An appropriate level of legal harmonisation will therefore have to be
achieved and common protection procedures introduced. With a view to this, a large
number of legal, law-enforcement and technical measures have already been taken, and
coordination at European level has been stepped up.

39

Economic and Financial Committee.

33

2.1.2.1. Council Regulation for the protection of the euro against counterfeiting

On the basis of a proposal by the Commission, the Council adopted on 28 June 2001 a
regulatory framework establishing procedures for collecting, storing and exchanging
institutions to withhold and hand over
information on counterfeits,
counterfeits to the competent national authorities and organises cooperation at national and
EU level and with third countries and international organisations.40

requires credit

the technical aspects of

Implementation of
the Regulation is well advanced in
Member States and at the ECB. The ECB is organising the technical protection of euro
banknotes, while the Commission coordinates the actions of Member States for the
technical protection of euro coins. All Member States have the technical capacity to
conduct an initial analysis of counterfeit notes and coins. The ECB has established a
Counterfeit Analysis Centre to provide comprehensive processing of counterfeit euro
notes. Following the exchange of letters between the President of the Council and the
French Finance Minister,41 a European Technical and Scientific Centre for the expert
analysis of counterfeit euro coins, headed by a Commission staff member (from OLAF)42,
has been set up to help all the national authorities responsible for combating counterfeiting
(police, customs, central banks, mints, etc.). In addition, the ECB is in the process of
creating a database for counterfeit notes and, in collaboration with the Member States and
the Commission, counterfeit coins. Work to create this instrument must be speeded up to
make up the time that has been lost: the database must be operational by 1 January 2002.

In line with the Regulation, efforts are being made to improve the transmission of
information to Europol and to reinforce the protection of the euro. Italy has set up a central
office for that purpose, and Belgium has reinforced and reorganised its existing structure.

Member States and the European institutions and bodies still need to undertake a number
of measures in order to comply with the Regulation, especially in the area of cooperation,
both domestically and with third countries and international organisations. They will also
have to pay particular attention to the new requirement that credit institutions withdraw
and hand over counterfeits. The ECB and the Commission are monitoring the
implementation of the Regulation and will be reporting on the progress made.

2.1.2.2. Council Framework Decision on penalties and sanctions

In order to achieve the desired degree of harmonisation among Member States as regards
the treatment of counterfeiting under criminal law, a Council Framework Decision was
adopted in May 2000 in connection with the introduction of the euro.43 It defines the

40

41

42

43

Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the
protection of the euro against counterfeiting (OJ L 181, 4.7.2001, p. 6) and Council Regulation (EC)
No 1339/2001 of 28 June 2001 extending the effects of Regulation No 1338/2001 to those
Member States which have not adopted the euro as their single currency (OJ L 181, 4.7.2001, p. 11).
Letters dated 28 February and 9 June 2000.
European Anti-Fraud Office.
Council Framework Decision (2000/383/JHA) of 29 May 2000 on increasing protection by way of
criminal penalties and other sanctions against counterfeiting in connection with the introduction of
the euro (OJ L 140, 14.6.2000, p. 1). Following an initiative by Sweden, the Framework Decision

34

relevant offences and requires the most serious offences to be punishable by terms of
imprisonment of not less than eight years. The Framework Decision requires the Member
States to communicate the text of the national implementing measures to the Council, the
Commission and the European Central Bank by June 2001. So far only eight
Member States have communicated such measures.44 The Commission (OLAF) has
therefore taken steps to ensure that the commitments made by the Member States are
implemented.

2.1.2.3. Extension of Europol's mandate

In April 1999 the Council adopted a Decision extending Europol's mandate to deal with
forgery of money and means of payment.45 In line with its mandate, Europol supports the
Member States' law enforcement agencies in preventing and combating serious organised
crime by facilitating the exchange of information and providing operational and strategic
analysis. In addition, it provides expertise and technical support for investigations and
operations carried out by the Member States' law enforcement agencies within the EU.
Europol will maintain a central database for law enforcement information relating to euro
counterfeiting and will also use the ECB's technical database. It is important that the
Europol database be operational at the beginning of 2002.

2.1.2.4. Draft Council Decision on intergovernmental cooperation and other measures

(a) On the basis of an initiative by the French Republic,46 the Council agreed in May 2001
on the substance of a draft Decision on the protection of the euro against counterfeiting,
which proposes intergovernmental cooperation to supplement the June 2001 Regulation.
The main thrust of the draft Decision is to require Member States to communicate to
Europol the results of technical analyses of counterfeit euro notes and coins and the
relevant centralised information on criminal investigations into forgery of the euro. The
draft Decision also provides for judicial cooperation (Eurojust). It will be reconsidered by
the European Parliament before being adopted.

(b) The Commission is currently assessing the case for legislation under which the ECB
and the central banks would devise a scheme for preventing, at least to some extent, the
reproduction of euro notes using printers and scanners.

(c) The ECB and the Commission have issued a number of recommendations and
communications concerning copyright protection for notes and coins, training, information
and other measures to enhance the legal protection of euro notes and coins.47

may be amended to include recognition of previous convictions when establishing a criminal
sentence in another Member State.
They are Germany, France, Ireland, Luxembourg, Denmark, Sweden, the Netherlands and Austria.
1999/C/149/02 (OJ C 149, 28.5.1999, p. 16).
Council Act: Initiative by the Government of the French Republic with a view to adopting a Council
Decision on the protection of the euro against counterfeiting (OJ C 75, 7.3.2001, p. 1).
See Commission Communication COM(2001) 190 final, 3.4.2001.

44

45

46

47

35

2.1.2.5. Coordination at European level

A steering group comprising representatives of the Commission, the ECB and Europol was
set up in February 2001 to coordinate measures to protect the euro against counterfeiting at
EU level. It exchanges information, takes initiatives and prepares coordinated decisions by
the three institutions. Its main task is to gather and exchange information about work
carried out on the protection of the euro against counterfeiting. It also examines and
coordinates these efforts with a view to developing a common strategy for ensuring an
effective EU-wide policy on protecting the euro. Coordination meetings take place roughly
once a month.

2.1.2.6. Training

In order to protect euro notes and coins from the moment they come into circulation,
people specialised in recognising the new currency need to be trained. A large number of
training initiatives are being undertaken by the Commission, the ECB and Europol, as well
as by the Member States and the national central banks, mainly within the Community but
also outside. The Commission has also proposed an exchange of information and an
exchange and assistance programme in the field of training in the protection of the euro
against counterfeiting. This programme has a budget of
4 million for the period 2002-05
and is currently under discussion in the Council.48

€

2.1.3. Dealing with the risk of price increases

The fear of price increases at the time of the changeover is a prime concern among
European consumers. According to the latest Eurobarometer survey (June 2001), the public
in the euro area are increasingly worried about being cheated and about prices being
tampered with during the changeover. Many have started to doubt whether the euro will
contribute to price stability.

Public administrations are directly concerned with this issue when it comes to converting
public-sector prices, such as utility prices, charges and fines, in euros. All Member States
have produced extensive legislation on the adaptation of these amounts. Most have
committed the public administrations to a policy of adapting prices in a way that is not
detrimental to the public. According to the information currently available, Belgium and
Luxembourg will convert public-sector charges into convenient euro amounts by
systematically rounding down in the public's favour. Germany, the Netherlands, Greece,
Italy, Spain, France and Ireland will adapt charges in a manner generally favourable to the
public by pursuing an overall policy of neutral price adaptation or rounding-down.
Portugal, Finland, Spain and Austria will apply neutral conversion. However, there have
been complaints in Germany, France, Belgium, Finland and Italy that some public
administrations at both national and local level have been raising or intend to raise prices
on the occasion of the changeover to the euro.49

48

49

COM(2001) 248 final, 22.5.2001.
For instance, a Belgian Royal Decree adopted on 11 August 2001 set the fee for an international
€
37.18). This is equivalent to a 7.5%
patent application at EUR 40, whereas it used to be BEF 1500 (
increase.

36

In addition, surveys carried out by public authorities in France and Finland have brought to
light some increases in retail prices on the occasion of the changeover. The reasons for
these increases differ and, in many cases, have nothing to do with the changeover to the
euro. The French Ministry of Finance has already decided to monitor prices every fortnight
and to increase checks on compliance with conversion rules. In Austria the “Euro
Währunsangabengesetz” allows the Ministry of Economic Affairs to set prices for a period
of six months in the event of unjustified price increases. Such increases are also punishable
by a fine of ATS 100 000 (

7267.28), which is doubled for a second offence.

€

The Commission has proposed practical measures that are being implemented at different
levels. Public administrations should set a good example, and dual display should be
strongly encouraged. Promoting good practices and spotting abuses (“name and shame”)
are also important for preserving customer confidence and encouraging price stability.
Finally, surveys and checks should be encouraged in order to monitor price developments
and reassure consumers.

The Commission has brokered an agreement - signed on 2 April - between European
representatives of consumers, retailers and SMEs whereby the retail trade has entered into
a voluntary commitment on price stability with a view to ensuring that the overall impact
of
to the euro is neutral. This has been transposed in several
Member States, including Italy, Greece and Spain.

the changeover

In their declaration of 10 September 2001, the European representatives of trade and
consumer associations restated their commitment to overall price stability and underlined
the importance of communication about this initiative.

2.1.4.

Production of euro notes and coins

2.1.4.1. Notes

The production of euro notes is on schedule. Production is running at approximately
1 billion notes per month. About 11.3 billion notes had already been produced by the end
of August 2001, i.e. more than the 10 billion notes expected to be put into circulation and
just over 75% of the total to be produced.

Demand for small-denomination notes indicated in the orders for frontloading has led to
revised estimates of the volumes to be produced for the launch. The Governing Council of
the ECB has therefore decided to increase the total number of notes needed before
1 January 2002 from 14.25 billion to 14.89 billion. In addition, it had earlier decided on a
central reserve arrangement amounting to around 10% of the launch requirements.

37

National distribution of denominations.
( Volumes of denominations in that country in million notes ).

E5

E10

E20

E50

E100

E200

E500

Aug-01

Total to be
produced

Belgium
Germany
Greece
Spain
France
Ireland
Italy
Luxembourg
Netherlands
Austria
Portugal
Finland

TOTAL

110
1 027.2

125
1 158.7

10
99.6
4
12.8
20
0.1
32
2
15
20
1
7
3155.1 3220.7 3406.3 3283.0 1230.5 223.5

100
1144.0
67
655
360
50
525
11
223
60
58
30

140
771.9
178
547.2
710
130
441.2
13
105
45
259
66

50
362.9
26
103.3
150
8.3
361
3
35
105
6
20

183
281.5
625
45
516
3
130
150
90
60

158
308.9
350
60
540.5
6
135
150
123
40

Production
achievement per
denomination in
volumes

Overall amount of total
denomination requirement

achieved as at end August 2001.

2374.84 2025.50 2808.83 2386.74 1119.14 213.17

15
218.6
1
15.4
50
0.1
24
8
16
20
0.5
2
370.6

550
4782.9
617
1924.1
2265
293.5
2439.7
46
659
550
537.5
225

14889.7

337.36

11265.58

Production
achievement per
denomination in
percentage

Overall % of total denomination
requirement achieved as at end
August 2001 ( ie: total
denomination = 100% )

75.27% 62.89% 82.46% 72.70% 90.95% 95.38% 91.03%

2.1.4.2. Coins

Coin production is on schedule. The production rate is about 1.9 billion coins per month.
The total amount of coins produced by the end of September was about 91% of the
quantities required by 1 January 2002. This amounts to almost 47 billion coins (out of 51.6
billion). While, overall, this quantity covers the amount estimated for frontloading, experts
are examining whether the individual denominations correspond to the frontloading orders.
For example, it is important to know what the effect will be if higher-than-foreseen
demand for small-denomination notes spills over into the larger-denomination euro coins.

Number of euro coins to be produced by end-2001

(millions of coins)

1 cent

2 cent

5 cent

10 cent

20 cent

50 cent

1 euro

2 euro

TOTAL

Belgi(qu)e

335

337

300

327

181

197

160

120

1957

Deutschland

3700

1800

2300

3300

1600

1600

1700

1000

17000

Ellas

España

France

73

143

240

811

1500

1083

214

901

1700

1500

1130

1080

309

901

800

121

1264

650

98

435

820

136

190

470

1333

7085

8150

38

Ireland

Italia

Luxembourg

Nederland

Österreich

Portugal

Suomi Finland

277

176

144

114

138

82

102

45

1078

1000

900

1380

900

1400

1100

950

310

7940

20

500

350

232

2

20

400

210

272

2

20

600

140

196

361

20

500

400

220

296

10

220

190

116

211

10

250

160

152

71

10

170

200

68

60

10

160

150

40

50

120

2800

1800

1296

1052

TOTAL

9000

7260

7894

8272

6076

5657

4773

2681

51611

Euro coins produced at end-September 2001

Millions of coins

% of end-2001 target

1 eurocent

2 eurocent

5 eurocent

10 eurocent

20 eurocent

50 eurocent

1 euro

2 euro

Total

8 395

6290

7 492

7 517

5 618

5 038

4 211

2 294

46 856

93.3

86.7

94.9

90.9

92.5

89.1

88.2

85.6

90.8

39

2.1.5.

Bringing the new notes and coins into circulation

A distinction must be made between notes and coins.

2.1.5.1. Methods and pace of euro note distribution

Euro notes will be distributed to consumers primarily through three channels: withdrawals
from cash dispensers, over-the-counter withdrawals and cash payments.

Cash dispensers provide on average 70% of the public's supply of banknotes: they are
therefore the key to the distribution of euro notes. Pressure brought to bear by the
Commission, the Eurosystem and the Member States in support of virtually immediate
adaptation of cash dispensers to the euro - a sine qua non for a rapid transition – has by and
large proved successful: in ten of the twelve Member States between 80% and 100% of
cash dispensers will dispense euros from 1 January 2002. However, difficulties persist in
Finland (25% on 1 January) and Portugal (50% on 1 January) which could slow down the
pace of transition and create change-giving problems for traders (it will be difficult to give
change in euros if consumers are still being supplied with national currency). Small
denominations (5 or 10 euros) will be available in all or some machines in all participating
Member States, except Finland, Greece and Belgium.

Bank or post office counters are also an important source of banknotes for consumers, and
this indirectly raises the question of their opening hours. Banks will be open to all or some
customers on 1 January in Germany, Austria, the Netherlands and Luxembourg, allowing
withdrawal or exchange transactions to start immediately. The issue is being discussed in
Portugal and Greece. Many banks also plan to extend their opening hours during the first
few weeks of 2002. The agreement of 19 February 2001 between the three European
banking associations and the Commission stipulates that withdrawals of household
amounts will be in small-denomination notes.

Cash payments are still important in a number of participating Member States and will
contribute to the spread of euro notes. This applies, for example, to salaries in Greece,
pensions in Italy and social security benefits in Ireland.

Lastly, traders in two Member States (Belgium and Ireland) provide a cashback facility (at
the customer's request, the amount of a card payment is increased and the difference is paid
in cash to the customer) and will thus significantly help to bring notes into circulation.

€

Assuming that cash dispensers are adapted immediately, the pace at which the new notes
are introduced will depend essentially on a behavioural variable:
the frequency of
withdrawals by consumers. Countries where consumers make frequent withdrawals of
small amounts (e.g. almost 400 withdrawals per ATM per day in Ireland, at an average
value of
45) have an advantage over those where consumers make infrequent withdrawals
of large amounts (e.g. some 50 withdrawals per ATM per day in Austria, at an average
€
value of
138). Assuming that there will be 20% more business than usual, and taking into
account only ATM and over-the-counter withdrawals, the majority of the population will
have received euro notes from banks by the fifth day in eight of the twelve participating
Member States. If other sources are included (cash payments, change given, etc.), this
threshold of 50% of the population ought in reality to be exceeded everywhere.

40

2.1.5.2. Methods and pace of euro coin distribution

Euro coins will be distributed to consumers primarily through two channels: frontloading
and change given by traders.

The frontloading of consumers with coins is particularly important: the quantities that will
be sold in kits in the last two weeks of December are on average equivalent to 29% of the
volumes currently in circulation (between 17% and 45%, depending on the country). It is
difficult to predict at this stage how consumers will react to these kits: will they buy one
per household, one per adult, or one per family member? Participating countries' ambitions
in this respect vary greatly. The proportion of kits available to the population over four
years old (many kits will be given to children) varies from 10% in Finland to 96% in
France and as much as 160% in the Netherlands.

Change given by traders will constitute the other major source of coins. In all participating
the
Member States
Commission and the Member States and to give change exclusively in euros.50

intend to follow the recommendation of

trade organisations

If consumer participation in frontloading is satisfactory and if traders comply with their
undertaking to give change in euros, coins should be brought into circulation very quickly
and most euro coins should therefore be in circulation from the end of the first week.

2.1.6.

Practical euro training measures for the general public and in particular for
groups which have difficulty in obtaining information

The data from the Commission's latest Eurobarometer surveys (see Section 1.4.1) show
that much but still not enough has been done to inform the public. The success of the
introduction of the euro lies ultimately in the ability of the various players on the ground to
help each member of the public not only to be aware of the key facts pertaining to the
changeover to the euro (conversion rates, date of introduction of notes and coins, etc.) but
also to learn the new scales of monetary value in order to deal with the introduction of
notes and coins with confidence. Over half the population now has a reasonable grasp of
the key facts. There are a few months left in which to pass on practical knowledge on the
euro to the public and to allow groups outside the usual information circuits to catch up
and prepare for the changeover.

The communication campaigns being conducted in Member States in conjunction with the
Commission and the European Parliament have already begun to convey messages
regarding the main practical stages of the changeover. With the launch of the Eurosystem
information campaign in September, the public now knows among other things what euro
notes and coins look like. It has three months in which to recognise them and to be able to
those involved in
handle them with confidence in the first few days of 2002. All
disseminating information on the euro are acting as a sounding board.

The groups that are traditionally the most marginalised in such an exercise have enjoyed a
relative advantage in the run-up to the changeover:
the deaf and
hard-of-hearing and for blind and partially sighted people and people with mental
in collaboration with the
disabilities have already received from the Commission,

instructors for

50

Since euro notes and coins will be legal tender, a customer may not refuse to accept change in euros
even if he has paid using the old national currency unit.

41

European Central Bank and the Mint Directors, over 28 000 kits of dummy euro notes and
tokens which reproduce the essential characteristics for recognising the real notes and
coins (right paper, right colours, right format, etc.). These training tools are essential to
allow these groups to receive a level of information similar to that which the general public
can obtain by glancing at a descriptive leaflet.

As part of the "Euro Made Easy" projects, co-financed by the Commission and the
European Parliament, over 12 000 specialised instructors (out of a planned total of 30 000)
have already been trained and are working very hard in associations and in every locality.
These instructors will then train on a one-to-one basis using practical exercises individuals
isolated from the normal information circuits who have not yet received the information or
the basic training (elderly people living on their own, the socially excluded, people with a
sensory handicap, the illiterate, etc.). The Commission has also prepared 22 training tools
from the "Euro Made Easy" projects (in ten languages) costing a total of
3 million and is
distributing them to these instructors. An initial set of copies has already been distributed.
Some 500 tonnes of material (leaflets, games, cardboard reproductions of notes and coins,
etc.) are being reproduced in September and October and will be sent throughout the euro
area. For wider distribution, models of these training products have been made available
for reproduction on the Commission's website.51

€

The Member States have reproduced some of these products in larger quantities. Most have
also directly trained or financed the training of specialised instructors or "mediators" who
will prepare the ground in their own countries from now until mid-2002 in order to
ascertain specific information requirements. Although there are many of them (some
30 000), the instructors are finding it hard to cope with demand.

It is up to each one of us to become a euro mediator and to play the part of communicator
to those around us. Like doctors in Italy, communities of elderly people in Spain, priests in
Portugal, local shopkeepers, each of us has an essential role in sharing information and
questions.

€

Leaving aside the difficulty of reaching every individual, the most complex task is to assist
the public in learning the new scale of values. Consumers should, for example, be able at
the beginning of 2002 to decide without using a ready reckoner whether or not a
100 from an ATM will be enough to see them through the week. Setting
withdrawal of
prices in euros, sending out a stronger message as part of information or training
campaigns and bringing forward the conversion of bank accounts and means of payment
will help individuals to come to terms with this new currency language and to learn to do
without ready reckoners as soon as possible in 2002.

1.1.1.

Cross-border payments in euros

On 1 January 2002 the introduction of euro notes and coins will bring home to the general
public the existence of the single currency. However, all
the
Commission's disposal indicates that, as things stand and with no change on the part of the
banks, bank charges for cross-border payments in euros by card, ATM, check or transfer
will remain just as expensive as they are now and will be much higher than the charges for

the information at

51

Europa.eu.int/euro, click on Citizens & Consumers, then Euro Made Easy/ Training and Information
Tools.

42

domestic payments. This was the finding of an initial study52 published on 12 July on
transfers, payments by card and ATM withdrawals.

As things stand, Union citizens will not be able to enjoy the full practical advantages of the
single currency, since the creation of the single market and the single currency has not
gone hand in hand with the creation of a single payments area.

It was for this reason that the Commission, in its previous communication,53 stated that:

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.

Accordingly, on 24 July it proposed a regulation on cross-border payments in euros.54

The proposal comprises three types of measure:

• It lays down for euro payments the principle of non-discrimination in charges between a
cross-border payment and a domestic payment. There should not be a different charge
simply because a payment crosses a frontier. This also applies to card payments and
withdrawals from ATMs as from 1 January 2002. An extra period of one year is
envisaged for transfers and cheques;

• It provides for measures to inform bank customers about charges for all payment
services and stipulates in particular that any price change must be notified prior to being
applied. The Commission considers that customer information and hence competition
will stop national prices from increasing as a result of application of the regulation;

• Lastly,

it encourages and facilitates the establishment of infrastructures permitting
automated cross-border payments. For instance, standards such as the International
Bank Account Number
(IBAN) and the Bank Identifier Code (BIC) are made
compulsory. Similarly, various national provisions, such as statistical reporting, which
give rise to practical difficulties between domestic payments and cross-border payments
will be either abolished or harmonised.

The Commission's analysis was confirmed by the findings of a new study published on
20 September,55 covering 1480 transfers of
100 carried out in March 2001 between the 15
Member States of the Union. The study showed that the average cost was
24.09, roughly
the same figure that emerged from a similar study conducted in 1993 by the same
consultant using the same methodology.

€

€

The establishment of a single payments area was the subject of a well attended
conference56 in Brussels on 24 September, at which the Commission's proposal for a

52

53

54

55

56

Press release IP/01/992.
COM(2001) 190 final.
COM(2001) 439 final (OJ C 270E, 25.9.2001, p. 270).
Press release IP/01/1293 and MEMO/01/294. The full findings can be found at the following
address: http://europa.eu.int/comm/internal_market/en/finances/payment/news.htm
Power point presentations and speeches available at

43

regulation was discussed at length, and in particular the issue of the infrastructures needed
to guarantee cross-border systems that are as efficient as domestic systems.

The proposal for a regulation is under discussion between the two co-legislators,
Parliament and the Council. The Commission hopes that the work will be completed in
December so that the Regulation can enter into force on 1 January. It views this instrument
as an essential accompaniment to acceptance of the euro by the general public.

2.2.

Forty good practices to facilitate the changeover to the euro

These good practices do not
participating Member States or in all sectors but, generally, speaking,
usefully copied in most of the participating Member States.

in every case lend themselves to the situation in all
they could be

2.2.1.

Twenty good practices the Commission believes are of great importance

1.
Setting of prices in euros already, together with the national-currency equivalent.
This measure, recommended by the Commission in October 2000, significantly helps
consumers to learn reference prices. The European representatives of the distributive trades
undertook to do this in an agreement concluded with consumer representatives in April.57
Display of the euro price first is compulsory in Portugal and is beginning to spread in large
retailers, especially in France and in Belgium. It is welcomed in general by consumers.58

2.
Early changeover of bank accounts and non-cash means of payment. This measure,
recommended by the Commission in October 2000, makes it possible to spread the
changeover operations of banks more effectively and helps actively to familiarise
consumers with the euro. It is being carried out by most European banks, but still by only a
minority of them in Austria and the Netherlands and not at all in Ireland.

3.
Early changeover of bills issued by the main utilities. Recommended by the
this measures helps provide consumers with euro
Commission in October 2000,
benchmarks. The main utilities began to switch over their invoicing systems as of January
in France. Similar measures were taken in July in Belgium and Italy, in September in Spain
and Luxembourg and in October in Portugal. It would be a good thing for the practice to be
copied everywhere.

4.
Free unlimited exchange of national currency at the bank counter at the beginning
of 2002 for bank customers, subject merely to a period of notice for large amounts.
Recommended by the Commission in October 2000, this measure should be applied by
most banks in all countries except Austria. It is essential to the simplicity and hence
success of exchange operations for consumers.

5.
counter at

Exchange free of charge of national currency for non-customers at

the bank
to a ceiling to be set by each bank.

the beginning of 2002, subject

57

58

http://europa.eu.int/comm/internal_market/en/finances/payment/conference/presentations.htm
Available at www.europa.eu.int on the website of the Directorate-General for Health and Consumer
Protection.
For example, a study conducted by Audencia Nantes in July 2001 on a trial basis in a shop where
prices were in euros (Hyper-U in Bourgueil) showed that 82% of customers took the view that
display of the euro first was an incentive to think in euros and to pay in euros and would like to see
its rapid introduction throughout the country ("In situ", Blandine Labbé-Pinlon, Audencia Nantes).

44

Recommended by the Commission in October 2000, this measure should be applied by
most banks in all countries except the Netherlands (where a charge will often be made).

6.
The almost immediate adaptation of cash dispensers to euro notes. The updating of
cash dispensers is essential for a rapid changeover to the euro. It will help to minimise the
problems of managing queues and giving change in shops by guaranteeing a very rapid
increase in the proportion of payments made in euros.59 Almost all cash dispensers
the participating
(between 80% and 100%) will be adapted from 1 January in all
Member States except Finland (25%) and Portugal (48%), where a special effort is needed.

7.
No handling fees charged by banks for the return of national currency by retailers
at the beginning of 2002. Most large European banks have already committed themselves
to this. It would in fact be odd if traders were penalised for their active help in withdrawing
national currency.

Deferred debiting (in terms of value date) of frontloaded notes and coins received
8.
by traders. In order to encourage traders to participate in the frontloading of notes and
coins, the money they receive should be debited in terms of value date as late as possible
and, in any case, not before 1 January 2002.

Distribution among small

9.
traders of change calculators. 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 devices exist on the market, but few have been
distributed so far. Ireland is the only country to date to have distributed such devices
widely among traders.60 Tools of this nature are, however, essential in order to avoid
queues building up in local shops and to minimise the risk of mistakes when giving
change. There are many channels through which euros could be distributed: chambers of
commerce, banks, associations of retailers, public administrations, etc.

10.
Sending specialists to explain on the spot to traders the arrangements for the
changeover to the euro. This step has been taken, for example, by the Assemblée des
Chambres Françaises de Commerce et d'Industrie (ACFCI),61 which has appointed experts
to call on all traders in turn at off-peak times to explain how the changeover will take
place. In Portugal instructors will visit 12 000 traders between September and November.62
Initiatives of this kind could usefully be taken throughout the euro area by chambers of
commerce, chambers of trade or local authorities.

11.
Development of a dialogue on the euro between employees and management within
firms. The changeover to the euro may have a significant impact on the organisation of
work (overtime, working at week-ends or on public holidays, etc.), on security or even on
employee stress (e.g. checkout staff). These matters should be openly tackled within firms
and discussed directly between employees and management.

59

60

61

62

Payments in national currency (with change given in euros) will take much longer and will therefore
cause queues.
A convertor-cum-change calculator is included in the training kit supplied to traders.
The ACFCI "10 000 pilot traders" initiative, 15 June 2001.
As part of a "Let's sell in euros" campaign organised by the National Commission on the Euro, the
Institute for SMEs and the Institute for Tourism.

45

Practical training of checkout staff in the handling of euro notes and coins. Various
12.
simulations carried out have shown that staff trained superficially make serious mistakes in
giving change, even when they have ready reckoners or the like.63 The national central
banks are organising training sessions for instructors. There should be more initiatives of
in order to limit
this kind, sponsored by the public authorities or trade associations,
practical problems in the first days of 2002.

Opening some or all bank counters on 1 January 2002. German, Luxembourg,
13.
Dutch, Finnish and Austrian banks 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.

14.
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).

15.
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 200164 between the
Commission and the three European banking associations.65
It will be a useful
accompaniment to the loading of cash dispensers with small denominations and thus help
to reduce the problems of giving change in euros.

Giving of change by traders exclusively in euros. One of the Commission's
16.
recommendations in October 2000, this measure has given rise to undertakings by traders
or to official recommendations in all the participating Member States except Finland.
Although it means traders will need a much larger cash float (they will not be able to
recycle national currency when giving change), this measure is essential for a rapid
currency changeover.

Compliance by traders with the commitment to overall price stability entered into
is

17.
by their European representatives. Application of this principle of good conduct
essential to preserve consumer confidence in the first weeks of 2002.

Continuation of dual pricing at least until the end of the period of dual circulation.
18.
It takes time to learn a new scale of values and this may be very difficult for some people.
To help them, they should be given some reference points in national currency for another
few months.

19.
Specific practical training for people with sensory or motor disabilities. Blind
people, for example, cannot be left to cope on their own with the new notes and coins in

63

64

65

A simulation carried out by McDonald's in Utrecht produced an error rate equivalent to 5% of daily
turnover, while one carried out by Carrefour in Brussels produced an error rate of 3% (compared
with 0.01% in a normal period).
Available on www.europa.eu.int/rapid
The European Banking Federation,
European Savings Banks Group.

the European Association of Cooperative Banks and the

46

they need repeated training in 2001 using the dummy notes and coins
early 2002:
distributed by the European institutions in order to develop a real sensory memory of the
new currency. Many Member States have already made commitments in this area, usually
in conjunction with the "Euro Made Easy" programme.

20.
Targeted information measures by local authorities and associations for vulnerable
groups (e.g. the homeless and the elderly living alone). Only the local authorities have
regular contact with groups which are often left out of traditional information campaigns.
Tools and materials specially designed for this "one-to-one" campaign are available in all
Member States.66

2.2.2.

Twenty good practices the Commission believes would be useful

1.
Distributing simple tools for estimating cash requirements. It is not easy for traders
to estimate their frontloading and cash-float requirements for early 2002. Austria, Ireland,
France 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-float
requirements.

With the customer's agreement, including kits of euro coins in change given during
2.
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 the early days of
2002.

3.
Distribution of kits of euro coins by employers 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).67 This measure is also likely to
increase the volume of euro coins frontloaded to consumers.68

4.
Loading cash dispensers with smaller denominations of national banknotes during
the final days of December. This measure is planned by some banks 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.

5.
Organising operations to simulate euro payments. There has been a proliferation -
often on the initiative of local authorities or large retailers - 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

66

67

68

For example, "Euro Made Easy" tools and materials.
In Belgium the gift of the kit must constitute an extra fringe benefit which does not replace other
allowances to which employees are entitled under
their employment contract or collective
bargaining agreement.
In addition to the sale of kits with a higher value to the general public, the Netherlands has also
decided to offer a kit containing one euro coin of each denomination to all residents over six years
of age.

47

in a consumer-friendly manner and helps the firms or authorities concerned to identify
potential sources of difficulty.

6.
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.

7.
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 and France. Where the dates
of sales are determined by the authorities, it would be desirable for them 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.

8.
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 could result
in even longer queues.

Distributing standard packages for returning national coins. This will be the case,
9.
for example, in France and Belgium. The kits will help to ensure that coins are quickly
returned by shops and counted by banks.

Keeping in a separate place national notes and coins received at checkouts. Most
10.
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.

11.
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.

12.
Creation of euro "mediators" by local authorities or chambers of commerce. These
people walk about shopping areas answering questions about the euro and mediate in
disputes in shops.

13.
Distribution to traders by local authorities and chambers of commerce of posters
showing the euro notes and the full set of euro coins (all the different national versions).
Information campaigns often focus too much on the national versions of the coins,
forgetting that coins from other Member States will very soon be in circulation, especially
in tourist areas.

48

Arranging for price movements to be monitored by the public authorities, possibly
14.
in cooperation with consumer associations. Such monitoring could focus on a sample of
products in order to provide indications of price increases very quickly.

Organisation by national or local authorities of

information campaigns for
15.
immigrant groups, with material drafted in the main languages they speak (Arabic,
Turkish, Swahili, etc.). Such material already exists in several Member States. It should be
widely distributed to facilitate the changeover to the euro.

16.
Sub-frontloading of euro notes to traders mainly in small denominations (5 and/or
10 euros). Planned in particular in Italy, this measure will facilitate the giving of change in
shops.

17.
Placing printed conversion tables or discs on shopping trolleys in large
supermarkets. Planned by several supermarket chains, this measure will provide people
with benchmark values in the early days of 2002 and is a useful accompaniment to dual
pricing.

18.
Distribution by the public authorities or voluntary associations of special
converters to vulnerable population groups. Belgium has, for example, distributed voice
converters to widows and widowers, the disabled, pensioners aged over 66 and orphans via
chemist's shops.

19.
Organisation by the public authorities or chambers of commerce of training in
counterfeit detection for traders. These measures would help teach small traders simple
checks they can make and would provide a useful adjunct to the Eurosystem information
measures.

20.
Measures to stimulate payments in euros in 2001. It is up to both businesses and the
public authorities to adopt such measures. For example, French retailers have decided to
handle all card payments exclusively in euros from 1 November 2001.

3.

ANNEXES

3.1.

Legislative measures in the Member States

In Belgium three laws relating to the euro were published at the end of July 2000. They
the decimalisation
deal with the rounding of public amounts converted into euros,
necessary for the introduction of the euro in public-sector computer software and price
displays on measurement devices. A first set of twenty-four royal decrees implementing
these laws was published at the end of August 2000. In November 2000 the authorities
adopted "a comprehensive scenario for the transition to euro book money". The adaptation
of legislation to the euro was thus largely accomplished. Further drafting of legislation
continued in all departments as far as the language communities and regions are concerned.
A second set of sixteen royal decrees finalising adaptation of legislation to the euro was
signed on 13 July 2001 and published in August. The adaptations made are generally to the
advantage of the general public. A preliminary draft bill on the definitive changeover to the
euro was approved by the government on 19 July 2001 and will be tabled in parliament at
the beginning of October. It covers three areas: monetary matters relating to the withdrawal
of Belgian notes and coins and the issue of euro notes and coins (withdrawal of the legal

49

tender status of the Belgian franc at the end of the dual circulation period, protection of the
euro); economic and commercial matters (dual pricing, period covered by sales) and tax
matters (abolition of the option of paying stock exchange taxes and VAT by way of
stamps).

In Germany legislation on the "adjustment of reference amounts" has been completed with
the adoption of the Law of 19 December 2000 on the conversion and rounding of euro
laws
amounts in tax laws (Steuer-Euroglättungsgesetz). More than a dozen draft
(Artikelgesetze) have been adopted by the Federal Government, and some of them have
already been passed by parliament and published in the Federal Gazette. The sixteen
Länder are also finalising their legislation. Some have enacted general laws, while others
have brought in specific laws in some fields (Einzelgesetze). Legislation to facilitate the
introduction of euro banknotes and the withdrawal of DM banknotes is also to be enacted.
Working hours for bank employees and other employees can be extended to 70 hours per
week in the weeks before and after 1 January 2002 (exemption from the rules on working
hours - Arbeitszeitverordnung). Cash-transport firms will also be allowed to use pedestrian
areas for a specified period of time (exemption from traffic regulations).

In September 2000 Greece adopted a basic law on the introduction of the euro (Law
No 2842/2000), which relates, among other things, to conversion and rounding, share
capital, dual pricing, capital market rules and conversion of fines and penalties. Dual
pricing is compulsory as of 1 March 2001 and until February 2002. This requirement also
than 10 employees). Three related legislative
applies to small companies (fewer
instruments were issued: a joint decree by the Ministry of Finance and the Ministry of
Development on dual pricing; a circular from the Ministry of Development setting up the
euro observatory; and a circular from the Ministry of Finance dealing with tax issues
during the transitional period. The redenomination of Greek government securities in euros
has been completed. The Ministry of Finance issued a circular on customs issues related to
the euro, while the Ministry of Development issued one on the conversion of share capital
into euros. Two circulars on the settlement of expenditure and the conversion of civil
servants' salaries are being drafted by the Ministry of Finance. A circular has been issued
by the Ministry of the National Economy prohibiting any increases in prices, fees,
penalties, etc. by public-sector entities in response to the introduction of the euro. It also
provides for the conversion and rounding of existing values to the benefit of the consumer.
A draft law on the introduction of euro banknotes and coins and the withdrawal of the
drachma legacy currency as well as on taxation issues (conversion into euros of amounts
specified in tax legislation and other relevant provisions) was adopted by the Greek
Parliament in September. The Ministry of Development has signed an agreement with
trade organisations aimed at preventing increases in the prices of goods and services by
downward rounding.

Spain has adopted legislation amending Law No 46/1998, which deals with the
introduction of the euro and frontloading. The period of dual circulation is set at two
months and it will be possible to exchange 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. The Spanish law on the introduction of the euro has been amended by Law
No 9/2001, which requires the use of six decimals in prices of intermediate operations.

introduced legislation on rounding

and
France
September 2000 (Order No 916/2000). Some 600 thresholds and amounts, mostly in the
tax field, were converted into euros. Four decrees were published in February 2001 on

(Law No 517/2000)

June

in

50

conversion into euros and adjustment of about 200 amounts in texts relating to taxation,
finance, insurance, tariffs and duties, consumer protection and savings. Several decrees
concerning the setting of administrative thresholds were also published. A special decree
appeared on 3 June 2001 that simplifies the arrangements for, and reduces the costs of,
converting capital into euros. All remaining thresholds and amounts were to be converted
by 1 October 2001. The legislative work will then have been completed.

In Ireland the Euro Changeover (Amounts) Act deals with the adaptation, where
necessary, of any money amounts specified in legislation to euros on 1 January 2002. The
amounts in the Tax and Social Security Codes have already been covered by the Finance
Act 2001 and the Social Welfare Act 2001. The Motor Vehicles Act 2001 lays down the
euro rates of taxation (taxes and dues) for motor vehicles. All conversions to more
practical euro sums have been carried out to the benefit of the public. An Order was
adopted on 11 July 2001 to withdraw legal tender status from Irish pound notes and coins
on 9 February 2002, following approval of the date by the Irish Parliament. Orders relating
to the recovery of coins, the establishment of the Minister's powers for the issue of euro
coins and the design of the national face were also adopted in July.

Italy adopted a budget law containing the main measures for the introduction of the euro
(Law No 388 of 23 December 2000, Article 155). In particular, it sets the end-date for
legal tender status of the lira and lays down the technical arrangements for the withdrawal
of lira coins. Some indications on the rounding of money amounts in public administration
are contained in the cash changeover plan. A law dealing with banking matters has been
adopted by Parliament. It provides for the closure of banks and the postal system on
31 December 2001 and the interruption of
the
denomination of bank accounts in euros without customers having to request that this be
done (or the possibility of keeping lira-denominated accounts, but at the express request of
customers) as well as measures and sanctions to combat counterfeiting of euro banknotes
and coins during the preparatory phase (until 31 December 2001). A government circular
has been sent to all Ministries with a view to adapting the amounts specified in legislative
texts. Rules to simplify the conversion of the share capital of public limited-liability
companies into euros are under examination. Measures are under examination relating to
the introduction of the euro, in particular the conversion of thresholds and national taxes
(to the benefit of taxpayers) and the obligation to complete tax returns solely in euros from
1 January 2002.

services on 29 December,

their

In Luxembourg the law of 1 August 2001 converts to the euro 250 amounts specified in
legislation. In parallel, a Grand Ducal Regulation, adopted on the same day, converts some
800 amounts specified in regulations. All the changes are to the taxpayer's benefit. These
texts also include measures for rounding and adjusting fines, administrative charges, tax,
historical, or social security amounts, stamp duty, thresholds, customs duties, etc. The law
also recommends that the number of decimal points to be used in intermediate calculations
should be set at four, in particular for the adaptation of wages and salaries. Lastly, the law
of 1 August 2001 extends until 30 June 2002 the simplified procedure created by the law of
10 December 1998 for the conversion of share capital into euros.

the

government

In the Netherlands
plan on
8 December 1998. A draft law on the conversion of legislative amounts, which is currently
before Parliament, has as its basic principle the neutral conversion of such amounts. A
draft currency law under which the guilder will cease to be legal tender on 28 January 2002
(00.00) is also before parliament. These two texts have been approved by the Lower House

cash changeover

adopted the

51

and must now be endorsed by the Senate. Legislation authorising 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 both the legal and the regulatory aspects of the euro and contains detailed
information about the cash changeover as well as information about the changeover in the
accounting and tax fields and about electronic applications in the public sector. Various
laws have been amended in order to comply with EU rules. As for specific legislation, the
Eurogesetz (Federal Law Gazette I, No 72/2000) lays down the rules for the period of dual
circulation. The rules on dual pricing are laid down in the Euro-Währungsangabengesetz
(Federal Law Gazette I, No 110/1999), while the changeover of long-term contracts and
agreements is regulated by the Euro-Justiz-Begleitgesetz (Federal Law Gazette I,
No 125/1998). A law was adopted before the summer to deal with all remaining problems
relating to the changeover to the euro. The conversion of amounts specified in tax
provisions was
the
Euro-Steuerumstellungsgesetz. The effect of all conversions was either neutral or to the
taxpayer's benefit.

Parliament's

July with

completed

adoption

on

of

6

In Portugal the Government approved on 16 November 2000 the cash changeover plan,
which 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. The Ministry of
Finance approved the final version of the changeover plan for financial administration on
7 February 2001. In February 2001 the Bank of Portugal issued a notice about the use of
cheques. Escudo cheques issued before 31 December 2001 will be accepted by banks until
28 February 2002. On 15 March 2001 the government approved two laws. The first law
sets the period of dual circulation at two months and provides for the exchange of escudo
banknotes and coins free of charge up to the end of June 2002 at commercial banks and for
a period of twenty years at the Bank of Portugal. On the basis of the principle that silence
on the part of bank customers signifies agreement, it authorises commercial banks to
undertake early conversion of bank accounts after October 2001. All deposit-account
balances remaining in escudos on 31 December 2001 will be automatically redenominated
in euros as from 1 January 2002. The changeover operations are free of charge. The second
law regulates dual pricing, which is mandatory during the period from 1 October 2001 to
28 February 2002. It applies to all retailers, albeit with some possible exemptions, mainly
for the liberal professions or companies and other entities employing not more than nine
people and for goods or services for which dual pricing would be materially impossible or
too expensive. These, however, are only possible exemptions; none have been applied as
yet. A law has been adopted that advises retailers and banks to give change in euros only.
It does not contain an explicit prohibition of mixed payments but recommends that all
invoices be paid in one or other of the two currencies. The Organic Law of the Bank of
Portugal has been amended in order to take account of the changes imposed by the
introduction of euro banknotes and coins. The final version of the switchover programme
for finance departments was approved in early May. It deals with a range of matters under
the responsibility of the Ministry of Finance. It also identifies the issues that still need to be
addressed and proposes solutions. The legislation on rounding and share capital is being
finalised.

In Finland the cash changeover plan was published in October 2000 and revised in
April 2001. It includes the key provisions of the public sector’s changeover plans. The
remaining legislative efforts were directed primarily at the arrangements for converting

52

amounts in Finnish markkaa, especially in the social security field. The legislative work
has now been completed.

3.2.

Comparative table of national euro changeover plans

53

1.

2.

3.

4.

5.

6.

Belgium

Germany

Greece

Spain

France

Ireland

Web site

www.euro.fgov.be
www.bnb.be

Www.bundesfinanzministerium.de
Www.bundesbank.de

www.euro-hellas.gr
www.bankof greece.gr

www.mineco.es/
www.bde.es

www.euro.gouv.fr/
www.banque-france.fr

www.euro.ie
www.centralbank.ie

Start of frontloading to
financial institutions

Coins: 1 September 2001
Banknotes: 1 November 2001

Banknotes and coins:
1 September 2001

Banknotes and coins:
1 October 2001

Banknotes and coins:
1 September 2001

Banknotes: 1 December 2001
Coins: 1 September 2001

Banknotes: 1 November 2001
Coins: 1 September 2001

Start date of frontloading
to retailers and
cash-in-transit companies

Cash-in-transit companies:
1 September 2001

Banknotes and coins:
1 September 2001

Retailers: 1 December 2001

Banknotes:
1 December 2001

Coins:
1 November 2001

(retailers only)

Large retailers:
1 September 2001
Small retailers:
1 December 2001

Retailers: 1 December 2001
(banknotes and coins)
Cash in transit: 1 September
2001 (coins); possibly
1 December 2001 (banknotes)

Banknotes: 1 November 2001
Coins: 1 September 2001

Kits for distribution to
retailers (packaging and
content)

867 000 kits containing
€
525 coins to a value of
(BEF 9 682)

240

To be agreed between banks and
retailers

€

147;

Kits will contain
number of coins not
decided.

4 million kits containing
123 coins to a value of
€
ESP 5 060 (

30.41)

1.5 million kits containing two
rolls of coins for each
denomination (640 coins -
€

222)

165 000 kits containing coins
€
to a value of

253

15 December 2001

17 December 2001

17 December 2001

15 December 2001

14 December 2001

17 December 2001

Start of frontloading of
coins to the public

Kits for distribution to
the public (packaging
and contents)

5.3 million kits containing
29 coins to a value of
(BEF 500)

€

12.40

53.5 million kits in plastic foil
containing 20 coins to a value of
€

10.23 (DEM 20)

3 million kits containing
45 coins to a value of
14.67)
GRD 5 000 (

€

At least 23 million kits in
plastic foil containing 43 coins
to a value of ESP 2 000
€
(

12.02)

€

53 million kits containing
15.25) to a value of
40 coins (
FRF 100. They will be packed
in a small transparent plastic
bag (the content of the “euro
purse”; its price and value will
be indicated on the bag).

750 000 kits containing
19 coins to a value of IEP 5
€
(

6.35)

At this stage: banks, post
offices, treasuries

Mainly through post offices

Distribution channels for
frontloading coins to
public

Commercial banks, post
offices, public transport
companies, large employers

Commercial banks and the
Bundesbank (in limited quantities)

Under examination

Commercial banks and Bank
of Spain; distribution through
supermarkets and the like
under consideration

54

Belgium

Germany

Greece

Spain

France

Ireland

Web site

www.euro.fgov.be
www.bnb.be

Www.bundesfinanzministerium.de
Www.bundesbank.de

www.euro-hellas.gr
www.bankof greece.gr

www.mineco.es/
www.bde.es

www.euro.gouv.fr/
www.banque-france.fr

www.euro.ie
www.centralbank.ie

7.

8.

9.

Using up hoarded
quantities of small coins
in good time

Operation “tirelire”
(15 October to
15 November 2001) for
collection of hoarded
quantities of coins

Start of early changeover
of bank accounts69

July 2001

Early changeover of
main utilities bills

Autumn 2001

10. Early changeover of
public procurement

11. Early changeover of civil

servants' salaries

May 2001

–

Saving cassettes for
charities

Under consideration for
September

Under consideration

Spring and autumn 2001

– Campaign for
“savings day”
29 October 2001

July 2001

October 2001

15 September 2001

July 2001

No, except on request

15 September 2001

January-July 2001

No

July 2001

Tenders in euros already
encouraged

Awarding of contracts in
euros for 2001

Agencies are urged to
draw up contracts in
euros.

Dual display on salary slips in
July 2001; as of 15 September,
only the euro will be used.

July 2001

Conversion of salary slips by
department.

69

Information based on a Commission survey among banks.

55

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Web site

www.tesoro.it/euro
www.bancaditalia.it

www.etat.lu.fi
www.bcl.lu

www.euro.nl
www.nb.nl

Www.euro.gv.at
Www.oenb.co.at

www.min-economia.pt
www.bportugal.be
www.infoeuro.pt

www.euro.fi
www.bof.fi

1.

Start of frontloading to
financial institutions

Banks and post offices:

Banknotes: 1 November 2001.

Coins: 1 September 2001

Banknotes and coins (banks
and post offices):
1 September 2001

Banknotes and coins:
1 December 2001

Banknotes and coins:
1 September 2001

Banknotes: 1 October 2001
Coins: 1 September 2001

Banknotes and coins:
1 September 2001

2.

Start date of frontloading
to retailers and
cash-in-transit
companies

Large retailers:

Banknotes and coins:

Banknotes: 1 December 2001

1 September 2001

Coins: 1 October 2001

Small retailers:

€

5 notes and coins:
1 December 2001.

No frontloading to
cash-in-transit companies.

3.

Kits for distribution to
retailers (packaging and
content)

1.2 million kits containing
22 rolls, i.e. 960 coins to a
value of

315

€

50 000 kits containing 8 rolls
€
to a value of

111

Banknotes and coins:

Retailers:

1 September 2001

1 December 2001 (banknotes
and coins)

Cash-in-transit companies:
1 September 2001 (banknotes
and coins)

Retailers: beginning of
December

670 000 kits to a value of ATS
2000 (

€
145.34)

150 000 kits to a value of
€

250

150 000 kits to a value of
€

168

Cash-in-transit companies:
banknotes and coins on
1 December 2001

Large retailers: banknotes and
coins on 1 December 2001

Small retailers: banknotes on
19 December and coins on
27 December

For training purposes, retailers
can obtain small quantities of
notes and coins as of October.

1.6 million kits of
large-denomination coins
containing 2 rolls of each
denomination (except 1 and 2
€
cents) to a total value of
219;
400 000 kits of
small-denomination coins
containing 10 rolls of 1 and 2
€
cents to a total value of

15

56

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Web site

www.tesoro.it/euro
www.bancaditalia.it

www.etat.lu.fi
www.bcl.lu

www.euro.nl
www.nb.nl

Www.euro.gv.at
Www.oenb.co.at

www.min-economia.pt
www.bportugal.be
www.infoeuro.pt

www.euro.fi
www.bof.fi

15 December 2001

15 December 2001

14 December 2001

17 December 2001

17 December 2001

17 December 2001

Start of frontloading of
coins to the public

Kits for distribution to
the public (packaging
and contents)

30 million kits containing
53 coins to a value of

€

12.91

Distribution channels for
frontloading coins to
public

Banks and post offices

600 000 kits containing
€
29 coins to a value of
(LUF 500)

12.40

€

-centres set up by

Retailers, banks, post offices
and special
commercial banks or other
agents (supermarkets, railway
stations, etc.)

5.5 million kits containing
ATS 200 (
14.53) in coins

€

1 million kits to a value of

€

10

500 000 kits containing 8
coins to a value of
3.88

€

Distribution free of charge of
16 million kits containing
8 coins to a value of
3.88 to
everyone aged 6 or over; sale
of 9 million kits to a value of
€

€

11.34 (NLG 25)

Banks and retailers

Commercial banks

Central bank and commercial
banks

Packages: post offices

Using up hoarded
quantities of small coins
in good time

Planned; details still to be
decided

September 2001 -
February 2002

Banks to organise a campaign
in October-November 2001

September-October 2001

Under consideration

Start of early changeover
of bank accounts70

July 2001, with explicit
agreement of customer

July 2001

September 2001 for certain
banks

July 2001

July 2001

October 2001

Early changeover of
main utilities bills

July 2001

Autumn 2001: details only in
euros, dual display for total
amount

No

No

October 2001

Autumn 2001

4.

5.

6.

7.

8.

9.

10. Early changeover of
public procurement

To be decided by each
administration

Recommendation to all
ministries and public
administration to use the euro
for public procurement

For contracts continuing
beyond 1 January 2001
recommendation to draw up
contract in euros

11. Early changeover of

October 2001

civil servants’ salaries

Salary slips show total amount
in national currency unit and
in euros

No

No

December 2001

As soon as possible. In
February 2001, 60% of salary
slips were already expressed
in euros.

70

Information based on a Commission survey among banks.

57

Dual-circulation period: Mass circulation

Belgium

Germany

Greece

Spain

France

Ireland

1.

2.

3.

4.

5.

6.

71

72

End-date of release of
national notes and coins
by banks

31 December 2001

Free-of-charge exchange
by banks for customers71

BEF deposit: free of charge
without limit until
31 December 2002
BEF exchange: free of charge
for notes without limit until
28 February 2002, with notice
to be given for large amounts

Recommendation for
change by retailers to be
given in euros only

Yes

Bank opening hours on
1 January 2002

Closed

Banknotes:
31 December 2001
Coins: 28 February 2002,
while stocks last

To be decided by each bank;
some banks have already
stated they will not charge for
exchange of legacy currency.

Change expected mainly in
euros but possibility of giving
change in DEM until
28 February 2002

May be open: administrative
measures will be taken to alter
statutory working hours, etc.
between 17 December and
28 February. Open on
30 December and 1, 6 and
13 January

31 December 2001

31 December 2001

31 December 2001

As necessary, up to end-2001

No limit

No limit

No limit

Household amounts up to an
overall total of (at least)
IEP 500 per individual

Official recommendation is
expected.

1 January 2002

Recommendation to retailers
to give change in euros only,
as far as possible, from
beginning of January 2002

Yes

No decision taken

Closed

Closed

Closed

Commitment to extend
opening hours during the first
few weeks of January

Bank opening hours on
31 December 2001 and
the other days

Open

Open

Open

Open

Each individual bank will
decide on the level of service
it wishes to provide.

ATMs converted on first
day (%)72

100%

Almost 100%

Almost 90%

Almost 90%

85%

+/- 90%

For account-holders.
Information based on a Commission survey among banks.

58

7.

8.

9.

ATMs to be converted
by end of first week
(%)73

Denominations of notes
distributed by ATMs
during first two weeks

Other specific methods
for initial distribution of
€
10 notes

5 and

€

Belgium

Germany

Greece

Spain

France

Ireland

100%

100%

Almost 100%

100%74

100%

100%

€

€

20 and
some banks

50;

€

5 available in

In most cases (4 cassettes)
10, 20, 50; in other cases
(2 cassettes) proposal to
dispense

10 and 50

€

€

5,

Predominantly

€

20 and

€

50

If 4 cassettes:
If 2 cassettes:

€
€

10; 20; 50
20; 50

Predominantly

€

10 and

€

20

Predominantly
notes

€

10 and

€

20

€

Banking sector will also
5 and
distribute
over the counter.

€

10 notes

€

Banking sector will also
5 and
distribute
over the counter.

€

10 notes

Under consideration

€

Banking sector will also
5 and
distribute
over the counter.

€

10 notes

Credit institutions will put into
10
circulation mainly
notes.

5 and

€

€

The bulk of social welfare
payments are paid by post
offices in cash weekly and
these will be in euros from
in the first
1 January 2002;
week of 2002, payments over
€
20 will generally include at
least four
5 notes. Retailers
will also be frontloaded with
€

€

5 notes.

Some ATMs in strategic
locations (universities, etc.)
will distribute smaller
denominations.

73

74

Information based on a Commission survey among banks.
Under an agreement between the Spanish authorities and the banking sector, 85% of banks should have converted ATMs by 5 January.

59

Dual-circulation period: Mass circulation (continued)

1.

2.

3.

4.

5.

6.

7.

75

76

77

End-date of release of
national notes and coins
by banks

Free-of-charge exchange
by banks for customers75

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

31 December 2001

31 December 2001

31 December 2001

31 December 2001

31 December 2001, whenever
possible

31 December 2001

Italian Banking Association
recommendation: exchanges
for amounts up to twice the
daily limit for withdrawals
from ATMs (about
500);
unlimited exchanges with one
working day’s notice

€

Banks and post offices will
exchange up to
€

1 000.
-centres will exchange
€

€

amounts of more than

1 000.

Free-of-charge exchange for
non-customers subject to
limits imposed by each bank

Customers can deposit
national currency and
withdraw euro currency free
of charge until 1 April 2002.

Recommended ceiling:
ATS 50 000

Banks recommend that the
exchange be done by deposit.
Exchange without charge for
account-holders. Additional
exchange depends on the rules
of each bank.

limit

No
or
for
frequency when the exchange
is done by deposit

amount

Recommendation for
change by retailers to be
given in euros only

Agreement envisaged with
retailers to give change
whenever possible only in
euros

Agreement with retailers to
give change whenever
possible only in euros

In principle, retailers will give
change in euros only as of 1
January 2002.

Recommendation to retailers
to return change only in euros

After 1 January 2002, retailers
will give change only in euros
whenever possible.

No official recommendation;
retailers will give change only
in euros whenever possible.

Bank opening hours on
1 January 2002

Closed

Open from 14.00 to 17.00

Bank opening hours on
31 December 2002 and
the other days

Law on opening of banks and
post offices on 31 December
under examination; no
banking services on
29 December

ATMs converted on first
day (%)76

Some 80%

ATMs to be converted
by end of first week
(%)77

More than 90%

Closed

100%

100%

Open the afternoon but only
for retailers to withdraw the
euro notes they have ordered

Closed to private individuals;
open to retailers, tourism
firms, etc. subject to prior
agreement

Under discussion

Closed

Open (for cash transactions)
Extended opening hours
planned for 31 December and
1 January

Open

Open

Each individual bank will
decide on the level of service
it wishes to provide.

About 90%.

100%

100%

100%

About 50%

About 25%

Almost 100%

About 75%

For account-holders.
Information based on a Commission survey among banks.
Information based on a Commission survey among banks.

60

8.

9.

Italy

Luxembourg

Denominations of notes
distributed by ATMs
during first two weeks

€

50 and

€

10 or

€

20 and

€

10.

Each bank will decide
independently, depending on
the location of the ATM.

€

20 and

€

50 or

€

In some ATMs,

100
€

10

Netherlands
€
€

20,

50

€

5 ,

€

10,

Austria

€

€

100 and

10; approximately
70% of these banknotes will
be distributed via ATMs.
Indoor cash dispensers will
supply denominations of other
euro banknotes as well.

Portugal
€

20,

50

€

5,

€

10,

€

Finland

€

20 and

€

50

Other specific methods
for initial distribution of
€
10 notes

5 and

€

Through the 26 000 bank
branches and 14 000 post
offices. Large retailers will
also play a role. Small
€
retailers will receive only
5
notes in advance.

Retailers will hold a
€
substantial stock of
€

5 and
10 notes in early January
2002. This, along with the
distribution via ATMs, should
€
provide sufficient
10
notes for the public after a few
days.

5 and

€

There will be specific
frontloading arrangements for
smaller denominations.

Not yet decided

specific methods
distribution

No
envisaged;
normal channels

are
via

61

Dual-circulation period: Remainder of period

Belgium

Germany

Greece

Spain

France

Ireland

1.

End-date of legal tender
status of national notes
and coins

28 February 2002, midnight

31 December 200178

28 February 2002

28 February 2002

17 February 2002, midnight

2. Measures envisaged for

withdrawing national
coins

Withdrawal by banks; control
by National Bank and Royal
Mint of Belgium

Coins and banknotes in
national currency will be
withdrawn in the same way
and stored in the same depots
used for distribution of euro
coins and banknotes.

Withdrawal by the Bank of
Greece and, for coins only,
through Treasury branches

Notes and coins will be
withdrawn in accordance
with the same general
procedure as for distribution
of euros.

Retailers can deposit coins in
standardised packing for
speeding up transactions and
verification. Storage: BdF

Saturday 9 February 2002,
midnight; Irish Parliament will
have final say.

Withdrawal by banks, under
the control of the central bank

1.

End-date of legal tender
status of national notes
and coins

2. Measures envisaged for

withdrawing national
coins

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

28 February 2002

28 February 2002

28 January 2002, midnight

28 February 2002

28 February 2002

28 February 2002

Storage in army facilities

Storage in special facilities

Austrian schilling banknotes
and coins are progressively
withdrawn from circulation
by banks and cash-in-transit
companies under the control
of the Austrian National
Bank and the Mint.

Withdrawal by banks, under
the control of the BCL

National coins will be collected
in the same depots used for
stocking the euro coins. In
October 2000 small coins of
ITL 50 and 100 ceased to be
legal tender. Initiatives
involving non-profit
organisations are under
discussion.

Withdrawal by banks via the
postal system

Free-of-charge exchange for
their own private customers
(for administrative reasons,
banks will probably require
the national currency to be
deposited in the current
account and offer the
possibility of withdrawing
euros simultaneously). This
should avoid overburdening
the retail sector as regards
changing guilders into euros.

Retailers will have the option
of contacting special call
centres set up by the central
bank to ask for a delivery of
euros (within 48 hours) or a
withdrawal of guilders
(within 72 hours) with a
direct credit or debit on their
bank accounts.

78

In accordance with the "joint declaration", the use of DEM notes and coins is authorised until at least 28 February 2002.

62

Arrangements after the dual-circulation period

1.

2.

1.

2.

Belgium

Germany

Greece

Spain

France

Ireland

Until 31 December 2002

At least until 28 February 2002

Length and exact arrangements
under consideration

30 June 2002

30 June 2002

For a period not yet specified

Period of exchange of
national currency by
commercial banks after
end of legal status

Redemption period after
end of legal status
(banknotes - coins)79

Banknotes: no limit

Coins: up to end-2004

DM banknotes and coins without
time and quantity limit at
Bundesbank

Banknotes: until 1 March 2012

Banknotes and coins:
indefinitely

Banknotes: until
17 February 2012

Banknotes and coins: indefinitely

Coins: until 1 March 2004

Coins: until
17 February 2005

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Period of exchange of
national currency by
commercial banks after
end of legal status

Banks that wish to do so
may continue exchanges.
Decisions will be taken
in February.

30 June 2002

Commercial banks will exchange
national currency until
31 December 2002; for the
private customer, this service will
be free of charge until
1 April 2002.

Each individual bank will
decide after
28 February 2002

30 June 2002

To be decided individually
banks

Redemption period after
end of legal status
(banknotes - coins)80

Banknotes and coins:
until 1 March 2012

Banknotes: unlimited

Coins: end-2004

Banknotes: until 1 January 2032

Coins: until 1 January 2007

Banknotes and coins:
indefinitely

Banknotes: until
30 December 2022

Banknotes and coins: until
29 February 2012

Coins: until
30 December 2002

Compiled by the Commission departments

79

80

At central bank.
At central bank.

63