Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee, the Committee of the Regions and the European Central Bank - First report on the practical preparations for the future enlargement of the euro area SEC(2004) 1383
Date: 2004-11-10
Institutions: European Commission
Subjects: Central and Eastern Europe, Cyprus, Malta, accession to the European Union, enlargement of the Union, euro, euro area

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.11.2004 
COM(2004) 748 final 

COMMUNICATION FROM THE COMMISSION  
TO THE COUNCIL, THE EUROPEAN PARLIAMENT,  
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE,  
THE COMMITTEE OF THE REGIONS AND THE EUROPEAN CENTRAL BANK  

First report on the practical preparations for  
the future enlargement of the euro area 

SEC(2004) 1383 

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First report on the practical preparations for  
the future enlargement of the euro area 

1. 

INTRODUCTION  

The eventual introduction of the single currency will be a milestone event for all future euro-
area entrants, just as it was for the countries in the present euro area. The new Member States 
joined the European Union as “Member States with a derogation”1 by virtue of Article 4 of 
the  Accession  Treaty.  The  eventual  adoption  of  the  single  currency  forms  part  of  the 
requirements laid down in the Treaty and these countries will therefore introduce the euro as 
soon  as  they  have  fulfilled  the  necessary  conditions.  Many  of  the  newly  acceded  Member 
States have indicated that they would like to join the euro area as soon as possible, and are 
therefore  making  efforts  to  comply  with  the  entry  conditions,  notably  the  “Maastricht” 
convergence  criteria, which are designed  to ensure sustainable  economic convergence of all 
future  euro-area  entrants.  The  preparations  for  the  practical  introduction  of  the  euro  have 
taken nearly six years in the countries which are presently part of the euro area. New Member 
States must therefore start preparing themselves in order to be ready in time and to ensure a 
smooth changeover. 

1.1 

Steps leading to the adoption of the euro 

The degree to which the different countries have met the requirements laid down in the Treaty 
in  order  to  allow  them  to  adopt  the  euro  are  evaluated  by  the  Commission  and  the  ECB  in 
their regular convergence reports2. Article 122(2) of the Treaty provides that, on a proposal by 
the  Commission,  the  Council  decides  which  Member  States  fulfil  the  necessary  conditions 
and consequently abrogates those Member States’ derogations. The Council moreover decides 
the  date  on  which  the  Member  States  concerned  will  join  the  euro  area  and  determines  the 
fixed and irrevocable conversion rate between the country’s national currency and the euro. 
On  the  date  of  adoption  of  the  euro,  the  conversion  rate  becomes  effective,  the  country’s 
former national currency ceases to exist and responsibility for monetary policy is transferred 
to the ECB.  This  occurred  on 1 January 1999 for the first eleven countries  joining  the euro 
area and on 1 January 2001 for Greece.  

For  practical  and  logistical  reasons,  the  current  euro-area  countries  introduced  a  transitional 
period of three years (a single year in the case of Greece) between the adoption of the euro as 
a currency (1999 for eleven countries and 2001 for Greece) and the introduction of euro cash. 
The  main  alternative  is  the  so-called  “big  bang”  scenario  in  which  entry  into  the  euro  area 
coincides with the introduction of euro banknotes and coins. This approach has a number of 

1 

2 

With respect to the adoption of the euro, Denmark and the United Kingdom have a special “opt-out” 
status. The ten new Member States and Sweden are Member States with a derogation. The referendum 
held  in  Sweden  on  14  September  2003  showed  that  a  majority  of  the  population  did  not  favour 
accession to the euro area.  
The latest convergence reports were issued on 20 October 2004 and concluded that none of the eleven 
Member  States  with  a  derogation  currently  fulfilled  all  the  necessary  criteria  (sustainable  public 
finances,  price  stability,  exchange-rate  stability  over  the  required  period,  level  of  long-term  interest 
rates). In view of the conclusions of its convergence report, the Commission decided not to put forward 
any proposal for abrogating derogations. 

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advantages,  particularly  now  that  euro  banknotes  and  coins  already  exist.  The  main 
disadvantage  is  that  it  reduces  the  period  available  for  the  public  and  private  sector,  and 
citizens  generally,  to  prepare  for  the  changeover.  The  introduction  of  euro  banknotes  and 
coins  is  followed  by  a  period  of  dual  circulation  during  which  banknotes  and  coins 
denominated in euro and in national currency both have legal tender status. The length of the 
period  of  dual  circulation  is  typically  decided  at  national  level  although  it  is  usually  kept 
relatively short, at a maximum of two months. 

1.2 

Purpose of the report 

Successful entry into the euro area not only requires compliance with the Treaty requirements, 
but also carefully planned and extensive practical preparations, which involve both the public 
and  private  sector,  and  even  the  public  at  large.  The  Commission  will  report  on  a  regular 
basis, at least once a year or whenever justified by specific developments, on the state of these 
preparations.  The  present  Communication  constitutes  the  first  such  report.  Contrary  to  the 
convergence reports, it does not stem from any legal or other obligation, but results from the 
Commission’s intention to keep all relevant parties, in particular the Community institutions 
and  the  Member  States,  as  well  as  the  interested  public  and  the  media,  properly  informed 
about progress being made in this important area. In terms of timing and issue frequency, the 
Commission’s  reports  on  the  state  of  practical  preparations  will  thus  not  be  linked  to  its 
convergence reports.  

The  overall  framework  and  the  key  elements  of  the  transition  to  the  new  currency  are 
generally  laid  down  in  a  country’s  “changeover  scenario”,  and  many  of  the  countries 
concerned  are  presently  in  the  process  of  drawing  up  such  scenarios.  As  regards  Sweden,  a 
referendum  was  organised  on  14 September 2003,  which  indicated  that  a  majority  of  the 
population  was  not  in  favour  of  joining  the  euro  area  at  the  time.  The  outcome  of  the 
referendum effectively stalled the practical preparations in Sweden. 

2. 

CURRENT PLANS FOR EURO ADOPTION  

Three Member States with a derogation (Estonia, Lithuania and Slovenia) joined ERM-II on 
28 June 2004. All three countries would like to join the euro area as soon as possible (2007). 
Most  of  them  have  adopted  national  changeover  plans  and  appointed  national  co-ordinators 
for  the  changeover.  A  single-step  transition  to  the  euro  (the  “big  bang”  scenario),  whereby 
euro banknotes and coins would become legal tender on the date of entry into the euro area, is 
generally  favoured.  The  selection  procedure  for  the  design  of  the  national  side  of  the  euro 
coins is either under way or has already been completed.  

The official plans and intentions in most other countries are gradually taking more concrete 
shape. Many countries plan to join the euro area at a somewhat later stage, towards the end of 
the  decade,  although  much  will  obviously  depend  on  their  degree  of  compliance  with  the 
convergence criteria.  

The  state  of  preparations  is  summarised  in  the  table  below,  which  is  generally  based  on 
information made public by the national authorities concerned, and which is meant to reflect 
the national decisions and positions on the different relevant issues. The Member States are 
listed in the order set by the Treaty. 

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EURO 
COINS 

Competition 
under 
consideration  

Competition 
launched in 
June 2004; 
final selection 
due in 
December 
20043 
Launch of 
competition to 
be scheduled 

ERM II 
ENTRY 

NATIONAL 
TARGET 
DATE  FOR 
EURO 
ADOPTION 
2009-10 

BIG BANG 
OR 
TRANSITIO
NAL 
PERIOD  

28.6.2004 

mid-2006 

2007  

Big Bang 

The 
Council of 
Ministers 
has recently 
decided to 
submit an 
application 
at the 
earliest 

1.1.2008 

Big Bang 

Competition 
launched 

28.6.2004 

1.1.2007 
(tentative) 

Big Bang 
parallel 
circulation  
2-3 weeks  

Final 
procedure of 
the tender for 
the creation of 
the gypsum 
models  

2010 

NATIONAL 
CHANGEOVER 
PLAN OR 
SIMILAR 
SCENARIO 
Czech 
Republic’s 
Euro Accession 
Strategy, 
(approved by 
the Govern-
ment in 
October 2003) 
Joint statement 
by the Estonian 
Government 
and the Bank of 
Estonia, 16th 
Jan. 2004 

A general 
preliminary 
framework has 
been prepared 

Preliminary 
changeover 
plan 

Preparation of 
the changeover 
plan outlines by 
December 2004 
and the 
strategic 
framework for 
the co-
ordination of 
the project 

COUNTRY 

NATIONAL 
CO-
ORDINATOR 

Czech 
Republic 

Estonia 

The 
Commission  of 
Ministers  (incl. 
CB Governor) 

Cyprus 

Latvia 

Joint co-
ordination by 
the Minister of 
Finance and the 
Central Bank of 
Cyprus is 
considered 

Changeover 
working group 
in the Bank of 
Latvia, 
consultations 
between MoF 
and the central 
bank 

Lithuania  Working group 
in the Bank of 
Lithuania for 
the develop-
ment of the 
changeover 
plan  

Hungary  With regard to 
the target date 
2010, 
preparatory 
work is under 
way in the 
Ministry of 
Finance and 

3 

By the closing date of the competition on 19 October 2004, 134 designs have been submitted. The panel 
of  experts  will  chose  by  mid-November  the  ten  best  designs  and  the  final  choice  will  be  made  in 
December 2004 through a nationwide telephone voting procedure. 

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2008 

Still to be 
determined  

Implemen-
tation plan 
covering 
whole process 
from 
competition 
stage to actual 
minting drawn 
up 

2009  

Still to be 
determined 

Public survey 

28.6.2004 

1.1. 2007 

Competition 
launched 

Big Bang 
(dual 
circulation:  
2 weeks ) 

1.1.2008/ 
2009 

Big Bang  

Competition 
launched 

Malta 

Poland 

Slovenia 

Magyar 
Nemzeti Bank 
(Central Bank 
of Hungary). 
A co-ordinating 
body charged 
with leading 
the process has 
still to be 
formally 
appointed. 
Ongoing 
consultations 
are in process 
between MoF 
and the central 
bank. 
Interinstitu-
tional working 
group MoF-
NBP 
Co-ordinating 
body (Ministry 
of Finance, 
central bank, 
other ministries 
and bodies) 

Slovakia 

Ministry of 
Finance 

Preliminary 
changeover 
plan being 
drafted by the 
MoF and the 
central bank 

Programme for 
ERM II Entry 
and Adoption 
of the euro 
(approved by 
the 
Government 
and the 
Governing 
Board of the 
Bank of 
Slovenia, Nov. 
2003) 

Sectoral Master 
plans  
Specification of 
the Strategy for 
Adopting the 
Euro in the SR, 
approved by the 
government in 
September 
2004. 
National 
changeover 
plan to be 
approved by 
mid-2005 

3. 

PAST AND FUTURE ENTRIES INTO THE EURO AREA: SIMILARITIES AND DIFFERENCES 

The changeover of the future euro-area entrants will have certain elements in common with 
previous  changeovers  and  moreover  benefit  from  lessons  learned  in  the  past.  Some  major 
differences are also highlighted. 

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3.1 

Lessons drawn from the previous changeover 

While  the  first  changeover  was  a  big  success,  there  is  room  for  improvement  in  several 
respects. The main lessons from the experience of the first-wave countries are the following: 

(i) 

Careful  and  pro-active  preparation  pays  off.  Countries  which  invested  in  early, 
thorough  preparations  were  rewarded  for  their  efforts  in  terms  of  speed  of  the 
changeover, public acceptance of the new currency and smoothness of the transition. 
Investment in communication and information was equally rewarded. 

This  is  the  key  lesson  of  the  initial  changeover  and  explains  why  the  Commission 
and  the  countries  in  the  next  wave  have  already  started  discussions  on  practical 
preparations.  

The results of the latest Eurobarometer (section 4) confirm that the need for precise 
and  timely  information  remains  as  important  as  it  was  in  the  past.  A  lack  of 
information  could  lead  to  fearful  or  even  hostile  reactions,  which  could  easily  be 
avoided. 

(ii) 

The transitional period of three years was too long. Some momentum was lost after 
1999 and the public authorities had to renew their efforts to (re-)convince enterprises 
and  citizens  to  prepare  in  time  for  the  cash  changeover.  Moreover,  the  use  of  the 
“scriptural” euro remained rather limited during the transitional period.  

For  a  number  of  reasons,  explained  in  section  3.2,  mainly  related  to  the  need  for  a 
swift cash changeover, a long transitional period is not advisable for future euro-area 
entrants.  However,  for  processes  such  as  the  changeover  of  information  systems  in 
the public and private sector, the lead times will remain as long as they were in the 
original  euro-area  countries.  Consequently,  since  the  changeover  itself  will  be 
shorter, the preparations will have to start at a very early stage. 

However,  since  the  transitional  periods  currently  being  envisaged  by  the  countries 
concerned  are  likely  to  be  shorter,  the  complexity  involved  in  using  two  currency 
units  (the  euro  and  the  national  currency)  simultaneously  will  be  reduced  and  the 
transition will thus be simpler to explain and to understand. 

(iii) 

The introduction of euro notes and coins needs to be swift: A “gradual” introduction 
of  euro  cash  creates  complications  for  citizens  and  enterprises  alike.  A  rapid 
introduction benefits all parties involved, provided it is carefully prepared. The same 
applies to the period of dual circulation, which should preferably be short. 

As demonstrated by the cash changeover in the current euro-area countries, a swift 
introduction  of  euro  cash  will  need  to  be  based  on  extensive  frontloading  and  sub-
frontloading,  the  immediate  changeover  of  all  ATMs,  the  giving  of  change  by 
retailers exclusively in euro and the possibility for customers and non-customers of 
banks to exchange legacy currency into euro at no cost.  

In  this  respect,  the  importance  of  card-based  payments  and  e-payment  needs  to  be 
emphasised.  Such  payment  methods  contributed  considerably  to  the  smooth 
transition, particularly in the retail sector.  

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(iv) 

The withdrawal of the national currency requires careful preparation: in the original 
changeover, probably too much focus was put on the introduction of the euro notes 
and  coins,  while  the  consequences  of  the  huge  backflow  of  legacy  currency  were 
underestimated. In particular, the logistical measures to cope with the huge quantities 
of  returned  coins  were  not  always  in  place,  and  sometimes  gave  rise  to  significant 
delays  in  the  shipping,  processing  and  counting  of  coins  and  the  crediting  of 
accounts.  

(v) 

Measures  should  be  taken  to  avoid  any  impact  on  prices.  This  requires  special 
attention, since it is difficult to tackle and often based on misperceptions which are 
difficult to correct. Prevention is definitely better than cure. 

The  Eurobarometer  results  clearly  show  that  citizens’  awareness  of  this  issue  is 
already  high.  The  risk  of  abuses  and  cheating  on  prices  during  the  changeover  is  a 
key concern for 71% of the respondents (average for all the newly acceded Member 
States).  However,  it  is  worth  noting  that  there  are  marked  differences  between 
countries.  The  breakdown  by  socio-demographic  categories  does  not  lead  to  any 
clear conclusions, except that older people are more apprehensive on this issue than 
the young.  

The  correct  conversion  of  prices  by  shopkeepers  and  retailers  in  general  will 
unquestionably  require  careful  preparations  by  the  authorities  concerned,  for 
example  in  the  form  of  price-stability  agreements  negotiated  with  the  retail  sector 
and  closely  monitored  before  and  after  the  changeover,  preferably  with  the  active 
involvement of consumer protection organisations and professional organisations of 
the retail sector at the national and European level. The authorities might also require 
individual retailers to  publicly display  their commitment  to ensuring  an  exact price 
conversion, for example by means of stickers or signs and by actively  encouraging 
the  use  of  dual  display  of  prices  during  a  certain  period  before  and  after  the 
introduction  of  the  euro  cash.  Both  means  would  increase  credibility  and  enable 
consumers to bring pressure to bear on retailers. Such measures should help alleviate 
fears and contribute to a smooth transition. 

(vi) 

The  “mental”  changeover  takes  considerably  more  time  than  the  physical 
changeover.  Survey  results  dating  from  November  2003  showed  that  30%  of 
respondents  most  often  thought  in  national  currency  when  doing  day-to-day 
shopping, as opposed to 46% most often thinking in euro. For large-value purchases 
(e.g. house or car), however, the majority of euro-area citizens still counted mentally 
most often in national currency (54%), while only a small minority (16%) counted in 
euro.  

3.2 

Main differences with the previous changeover 

While some common elements will apply, it should be borne in mind that the newly acceded 
Member States have many country-specific characteristics and peculiarities. In general terms, 
the key differences with the first-wave changeover will be the following: 

(i) 

The future enlargement of the euro area will occur in several successive waves. It is 
very  unlikely  that  the  pre-ins  will  join  as  a  single  group.  It  is  expected  that  small 
groups of countries (or individual countries) will join in a particular year.  

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Therefore,  the  collective  momentum  of  the  first-wave  euro-area  countries  will  not 
exist  to  the  same  extent,  and  future  enlargements  of  the  euro  area  will  have  less 
external visibility outside the countries directly concerned. At the same time, the fact 
that  many  countries  have  already  adopted  the  single  currency  will  facilitate  the 
changeover in certain respects, as discussed below.  

(ii) 

Euro  banknotes  and  coins  already  exist,  and  most  citizens  in  the  newly  acceded 
Member  States  are  already  familiar  with  them.  In  certain  shops,  mainly  in  tourist 
areas and border areas, the euro is already used and accepted for payment. This may 
reduce  the  need  for  significant  frontloading  operations  in  certain  sectors.  Some 
citizens and companies may also want to acquire some euro cash abroad, particularly 
when  living  in  relevant  border  areas.  In  addition,  citizens  outside  the  euro  area  are 
already  allowed  to  open  euro  accounts  with  their  domestic  banks.  For  those  who 
have chosen to do so, the changeover is already under way.  

The  latest  Eurobarometer  (section  4)  shows  interesting  evidence  of  the  practical 
experience  already  gained  by  citizens  in  the  ten  newly  acceded  Member  States.  It 
appears that most citizens in these Member States (73% on average) have seen euro 
banknotes, and that 66% on average have seen euro coins. In some countries, these 
figures  reach  extremely  high  levels,  e.g.  95%  of  respondents  in  Slovenia  have 
already seen euro banknotes and 87% have seen euro coins. The figures for Cyprus 
amount to 85% (banknotes) and 82% (coins). People are least familiar with euro cash 
in  Latvia,  although  even  there  more  than  half  of  the  population  have  seen  euro 
banknotes (67%) or euro coins (55%). 

When  it  comes  to  the  use  of  euro  banknotes  and  coins,  the  figures  are  obviously 
smaller but still significant: 49% on average of the population in the newly acceded 
Member  States  have  already  used  banknotes  and  50%  have  used  euro  coins.  Here 
again,  some  countries  are  taking  the  lead,  e.g.  Slovenia  (81%  and  79%  have  used 
euro  banknotes  and  coins  respectively)  and  Cyprus  (76%  and  77%).  The  lowest 
figures  for  experience  of  use  of  euro  cash  are  found  in  Lithuania  (40%  and  39%). 
More interestingly, the Eurobarometer results show that 18% and 15% respectively 
of  respondents  have  already  used  euro  banknotes  and  coins  in  their  own  country. 
These  figures  clearly  indicate  that  the  euro  is  already  informally  used  for  certain 
transactions. In countries such as Latvia, Lithuania and Poland, the figures rise to a 
significantly  higher  level  (34%,  31%  and  28%  respectively  for  euro  banknotes  and 
27%, 20% and 24% for coins).  

(iii) 

The transition from the national currency to the euro is expected to be much faster. 
Many countries are considering a “big bang” approach whereby the date of entry into 
the  euro  area  coincides  with  the  date  of  (official)  introduction  of  euro  cash.  A 
majority  of  the  newly  acceded  Member  States  (CZ,  EE,  LV,  LT,  PL,  SI,  SK)  have 
undertaken a currency conversion in recent years and gained valuable experience in 
the process. 

The existence and wide availability of euro cash also plays an important role in this 
approach. Some of the elements which appeared to be of crucial importance for the 
success of the first changeover will therefore play a smaller role in future. Euro cash 
can  be  easily  acquired  before  its  official  introduction  in  the  country,  and  some 

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(iv) 

citizens  and  companies  might  choose  to  prepare  themselves  well  in  advance. 
Frontloading and sub-frontloading4 of economic operators will probably again play a 
role in ensuring a rapid changeover by making sure that sufficient quantities of cash 
are  in  place  as  of  €-day.  The  sub-frontloading  of  citizens  with  certain  amounts  of 
small-denomination banknotes as well as coins would also be conceivable. 

Future  euro-area  entrants  will  have  a  particular  interest  in  making  the  changeover 
period  as  short  as  possible,  since  the  countries  could  otherwise  potentially  face  a 
period of informal dual circulation in certain sectors during which the euro could be 
actively used by citizens and retailers before it becomes the legal tender. 

The  size  and  extent  of  the  necessary  adaptations  to  be  made  in  certain  areas  will 
differ  from  the  earlier  changeovers  in  the  euro  area.  For  example,  the  number  of 
ATMs  per  capita  is  lower  than  in  the  euro  area,  although  fairly  significant.  ATMs 
help  in  speeding  up  the  early  introduction  of  euro  cash  into  the  economy.  Past 
experience  demonstrates  that  a  large  proportion  of  euro  banknotes  were  put  into 
circulation via cash dispensing machines, notably due to their availability around the 
clock, particularly when bank branches are closed. The high number of bank and post 
office  branches  per  capita  (more  or  less  similar  in  most  countries  to  the  euro-area 
average)  will  somewhat  mitigate  the  lower  number  of  ATMs  since  it  will  help 
citizens  to  acquire  the  necessary  amount  of  euro  banknotes  and  coins  early  in  the 
changeover  process.  Special  measures  (longer  opening  hours,  week-end  openings, 
etc.) may need to be envisaged. 

The number of POS terminals is relatively small compared to the euro-area average, 
notably because many of the newly acceded Member States intensively use cash (cf. 
below). The lower availability of electronic and/or e-payment devices is a handicap 
as  it  constitutes  the  main  alternative  to  cash  and  since  such  payment  equipment  is 
typically switched over very easily. While the number of payment cards (both debit 
and credit) per capita in the new Member States is smaller than in the euro area, it is 
significant in relative terms (debit cards in particular). In practice, cards are primarily 
used to withdraw cash from ATMs. Significant scope thus exists for expanding the 
domestic POS networks and hence to alleviate the pressure on the cash changeover. 

Statistical evidence confirms that banknotes and coins play a dominant role as means 
of payment in most of the newly acceded Member States, although the total amount 
of cash per capita is lower than in the euro area. For example, in some of the newly 
acceded  Member  States,  many  workers  and  pensioners  continue  to  receive  their 
wages and pensions in cash. As explained above, the important role played by cash 
constitutes  a  disadvantage  for  all  parties  involved  (banks,  retailers,  consumers  …) 
and will require intensive preparation of the cash changeover.  

Finally,  the  conversion  of  automatic  vending  machines  should  not  cause  major 
problems.  The  overall  number  of  machines  is  relatively  limited  for  the  time  being. 
Hungary appears to be the country with most machines (22,000), compared to a total 
number  in  excess  of  two  million  for  the  euro  area.  Moreover,  in  contrast  to  the 

4 

Frontloading refers to the supply of sufficient quantities of euro banknotes and coins to banks before 
euro  cash  acquires  legal  tender  status,  i.e.  before  €-day.  Sub-frontloading  refers  to  a  similar  type  of 
operation whereby frontloaded banks supply retailers and other businesses with sufficient quantities of 
euro cash so that they can immediately start operating in the new currency from day one. 

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situation at the time of the first changeover, euro coins are widely available and the 
operators will therefore not face any particular constraints as regards the testing and 
fine-tuning of coin validators. 

4. 

THE  STATE  OF  PUBLIC  OPINION  TOWARDS  THE  EURO  IN  THE  NEWLY  ACCEDED 
MEMBER STATES 

The latest Eurobarometer survey on public opinion in the ten newly acceded Member States5, 
concerning  their  attitudes  to  and  knowledge  of  the  introduction  of  the  euro  was  conducted 
during the first half of September 2004 by EOS Gallup, polling over 10,000 citizens.  

4.1 

General attitude towards the euro 

The  level  of  interest  in  the  introduction  of  the  euro  is  rather  low,  with  only  50%  of 
respondents  declaring  an  interest  and  48%  uninterested.  The  overall  result  in  the  newly 
acceded Member States shows that slightly more citizens believe that the introduction of the 
euro would have positive consequences (44%) on a national level, while 41% believes it will 
have negative consequences. 40% expect the introduction of the euro to be positive for them 
personally while 45% believe that it will be negative. Citizens appear to have mixed views as 
to  whether  they  are  happy  (42%)  or  not  (47%)  that  the  euro  will  replace  their  national 
currency. 

Concerning the time frame for adopting the euro, 19% of respondents in these ten countries 
indicate that they would like the euro to become their currency as soon as possible, while 36% 
respond that it should be adopted after a certain time, and a relative majority (40%) believes 
that  it  should  be  adopted  as  late  as  possible.  However,  citizens  seem  well  aware  of  the 
practical  advantages  of  the  introduction  of  the  euro,  with  92%  and  82%  respectively 
recognising its convenience for traveling abroad and for purchasing goods and services in the 
euro  area,  and  77%  acknowledging that  it  eliminates  the  need  for  currency  exchange  inside 
the euro area. Moreover, a majority of respondents (54%) do not believe that the changeover 
will cause them any major inconvenience. As indicated earlier, a significant majority however 
fears possible abuses and cheating on prices during the changeover. 

4.2 

Citizens want to be better informed 

Knowledge among the general public in the newly acceded Member States about the euro and 
the conditions for its adoption is still rather low. Most of those polled (57%) are unaware that 
the adoption of the euro is mandatory for their country, and do not know how many countries 
are already in the euro area.  

Almost half the respondents (48%) do not consider themselves well informed about the euro, 
but would like to be properly informed well before the single currency is introduced in their 
country.  30%  of  respondents  indicate  that  they  would  like  information  as  soon  as  possible, 
while 24% would prefer to get it at least a few years before the introduction of the euro. As 
sources  of  information,  the  majority  of  respondents  put  most  trust  in  their  national  central 
bank (63%), far ahead of any other institution (only 29% trusted their government, national or 
regional authorities and 22% the European institutions). Citizens in these Member States have 
a  preference  for  euro  information  campaigns  based  on  TV  spots  (78%),  followed  by  radio 

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The Eurobarometer surveys are available at http://europa.eu.int/comm/public_opinion/index_en.htm. 

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spots (66%) and leaflets and brochures (64%). Most citizens want information campaigns to 
focus  on  the  practical  implications  of  the  euro  (their  salary,  bank  account,  etc.).  The  dual 
display  of  prices  is  seen  as  the  most  essential  tool  for  preparing  the  population  to  the  new 
scale of values.  

4.3 

Main lessons from the survey 

The introduction  of the euro  in these  Member  States is  one  step in a medium- to long-term 
convergence process of many stages. In many countries, the exact date of adoption of the euro 
is not yet known, which may have had an impact on people’s responses. 

The socio-demographic breakdown of the results shows that men, young people and educated 
and urban populations are much more in favor of the euro as compared to women, the elderly, 
people with a lower level of education and those living in rural areas. 

Overall,  citizens’  general  attitude  towards  the  euro  seems  to  be  mixed.  This  is  somehow  in 
line  with  the  findings  of  the  1997  Eurobarometer,  which  showed  a  similar  lack  of  strong 
feeling for the single currency in the countries that are now part of the euro area: 47% were in 
favour of the euro while 40% were against. In this respect, it should also be kept in mind that, 
as was the case for certain euro-area countries, a part of the population is emotionally attached 
to the national currency. The populations of the newly acceded Member States show a clear 
desire for more information on the euro. Even though they are in no hurry to adopt it, they 
would like to be prepared well in advance of the changeover. Major information campaigns 
will generally be needed to meet this demand.  

5. 

CONCLUSIONS 

The  future  enlargement  of  the  euro  area  will  take  place  over  a  number  of  years,  since  the 
future euro-area entrants are expected to join on a case by case basis. In most countries, the 
changeover  scenario  being  envisaged  will  provide  for  a  rapid  transition  from  the  national 
currency to the euro (e.g. a “big bang” scenario). At the same time, this will increase the strain 
on enterprises and public administrations. It also strengthens the need for careful and timely 
preparations  by  all  actors  involved  (public  administrations  at  all  levels,  banks,  retailers, 
enterprises  in  general).  The  latest  Eurobarometer  poll  shows  that  the  public  consider  the 
provision of information well in advance of the changeover to be essential. 

The Commission will continue to closely follow up the progress of the practical preparations 
for the introduction of the euro in the different countries concerned. In this respect, the Public 
Administrations’  Network 
the  different  national 
representatives  responsible  for  these  issues,  constitutes  an  essential  forum  for  exchanging 
views and information. In the field of information and communication, a similar group (DIR-
COM) has been established and allows the different Communication Directors to meet on a 
regular basis. 

(PAN-II),  which  brings 

together 

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