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 - Second report on the practical preparations for the future enlargement of the euro area {SEC(2005)1397}
Date: 2005-11-04
Institutions: European Commission
Subjects: accession to the European Union, convergence criteria, enlargement of the Union, euro, euro area, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.11.2005 
COM(2005) 545 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 

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

{SEC(2005)1397} 

EN 

   EN 

 
 
 
  
 
 
TABLE OF CONTENTS 

1. 

2. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

3.7. 

4. 

4.1. 

4.2. 

4.3. 

5. 

5.1. 

5.2. 

5.3. 

6. 

INTRODUCTION ........................................................................................................3 

CURRENT STRATEGIES FOR EURO ADOPTION.................................................3 

THE STATE OF PREPARATIONS AT NATIONAL LEVEL...................................4 

Adoption of the changeover plans ................................................................................4 

Contents of the changeover plans .................................................................................5 

The changeover scenarios.............................................................................................5 

Dual circulation ............................................................................................................5 

Consumer protection.....................................................................................................6 

Supply of euro banknotes and coins .............................................................................6 

Information and communication...................................................................................7 

THE PREPARATIONS AT COMMUNITY LEVEL..................................................7 

Preparing the Community legal framework .................................................................7 

The designs of the common and national sides of the euro coins ................................8 

Information and communication policy at Community level.......................................8 

THE STATE OF PUBLIC OPINION IN THE RECENTLY ACCEDED MEMBER 
STATES........................................................................................................................9 

Citizens want to be better informed..............................................................................9 

General attitude towards the euro ...............................................................................10 

Main lessons from the survey .....................................................................................10 

CONCLUSION...........................................................................................................11 

EN 

2 

   EN 

 
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 

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

1. 

INTRODUCTION 

First and foremost, a country’s successful entry into the euro area requires compliance with the 
“Maastricht” convergence criteria laid down in the EC Treaty. The degree to which the different 
countries have met the formal requirements allowing them to adopt the euro are evaluated by the 
Commission and the ECB in their regular Convergence Reports1.  

In  addition  to  these  Treaty  requirements,  a  country’s  entry  into  the  euro  area  also  entails 
carefully planned and extensive practical preparations, involving both the public and the private 
sector, as well as the public at large. In its first report on practical preparations (COM (2004)748 
of  10  November  2004),  the  Commission  committed  itself  to  report  on  a  regular  basis,  and  at 
least  once  a  year  or  whenever  justified  by  specific  developments,  on  the  state  of  these 
preparations.  

This report notably presents the target dates which Member States have set for themselves for 
the adoption of the euro, the current state of practical preparations at national and Community 
level, and the state of public opinion in the recently acceded Member States. The present report 
is not linked to the Convergence Reports nor does it stem from any legal or other obligation. 

A Commission staff  working paper, drawn up by the Commission services, is attached to this 
report, providing more technical details on the preparations. 

2. 

CURRENT STRATEGIES FOR EURO ADOPTION 

Twelve of the EU’s twenty-five Member States currently form part of the euro area. Denmark 
and  the  United  Kingdom  have  a  special  “opt-out”  status.  The  remaining  eleven  countries  are 
“Member  States  with  a  derogation”2,  and  are  expected  to  adopt  the  euro  once  the  necessary 
conditions are fulfilled.  

Estonia, Lithuania and Slovenia aspire to adopt the euro on 1 January 2007, less than three years 
after  they  joined  the  European  Union  on  1  May  2004.  All  three  countries  joined  ERM-II  on 
28 June 2004. Cyprus, Latvia and Malta will endeavour to join the euro area one year later, on 
1 January  2008.  They  entered  ERM-II  on  2  May  2005.  Slovakia  aims  to  adopt  the  euro  on 

1 

2 

The  latest  Commission  Convergence  Report  was  issued  on  20  October  2004  (COM(2004)690).  It 
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 no to put forward any proposal for abrogating derogations. 
The ten countries which joined the European Union on 1 May 2004 are Member States with a derogation 
by virtue of Article 4 of the Accession Treaty. Sweden became a Member State with a derogation in May 
1998. 

EN 

3 

   EN 

 
                                                 
1 January  2009.  Practical  preparations  in  all  these  countries  have  been  initiated.  National 
changeover plans have either been approved or are under preparation. 

The Czech Republic and Hungary aspire to join the euro area in 2010. Poland and Sweden have 
no target date for the time being. 

Just a few years after having joined the EU on 1 May 2004, the first recently acceded Member 
States are already aspiring to join the twelve countries currently forming part to the euro area. If 
current plans materialise, the euro area will enlarge with nine more countries in four successive 
steps  between  2007  and  2010.  Its  population  will  enlarge  from  309  million  people  to  345 
million, and its aggregate GDP will increase by around 3.7 %. If all current Member States with 
a derogation were to be part of the euro area, its population would increase by an additional 47 
million people, and its GDP by a further 6.2%. 

3. 

THE STATE OF PREPARATIONS AT NATIONAL LEVEL 

This Section presents the salient features of the existing national strategies and plans. They will 
be commented on in the light of the main lessons learned from the past experience (cf. the first 
report on practical preparations issued last year). 

Annex 1 summarises the state of national preparations. It is largely based on information made 
public by the countries concerned. Annex 2 provides a synoptic view of the state of preparation 
with respect to the main elements of the changeover. 

3.1. 

Adoption of the changeover plans  

All seven Member States aspiring to adopt the euro between 2007 and 2009 have established the 
institution  or  changeover  board  in  charge  of  preparing  and  co-ordinating  the  national 
changeover.  Four  countries  (Estonia,  Lithuania,  Slovenia  and  Slovakia)  have  adopted  national 
changeover  plans.  The  state  of  preparations  is  quite  uneven  between  countries.  In  general,  its 
pace needs to be stepped up. 

Slovenia adopted its first national changeover plan in January 2005. Practical preparations are 
generally  advancing  well,  while  certain  aspects  (e.g.  frontloading  and  sub-frontloading 
arrangements)  will  need  to  be  further  strengthened.  The  implementation  of  this  plan  should 
continue  to  be  monitored  closely.  Estonia  and  Lithuania  adopted  the  first  versions  of  their 
national  changeover  plans  in  August  and  September  2005,  respectively.  Both  countries  will 
definitely  need  to  accelerate  ongoing  preparations,  while  closely  associating  all  economic 
sectors and actors most directly concerned by the changeover. 

The situation in Cyprus, Latvia and Malta also causes some concern since preparations are still 
in a preliminary stage and need to be stepped up. In all three countries, the first version of their 
changeover  plan,  normally  foreseen  before  the  end  of  the  year,  should  be  adopted  as  soon  as 
possible in order to provide specific and timely orientations to public and private operators as 
soon as possible. 

The situation in Slovakia is satisfactory since a comprehensive national plan has been approved 
on  a  timely  basis,  providing  clear  guidance  to  all sectors  and  actors  involved  in  the  country’s 
practical preparations, thereby encouraging and facilitating the transition of both the public and 
private sector. The plan will be updated on a regular basis. 

Practical  preparations  in  the  Czech  Republic,  Hungary  and  Poland  are  in  a  very  preliminary 
stage.  Preparations  in  Sweden  are  stalled  in  practice  since  the  negative  outcome  of  the 
referendum of 14 September 2003.  

EN 

4 

   EN 

 
3.2. 

Contents of the changeover plans  

Most  changeover  plans  focus  on  the  cash  changeover.  Other  key  aspects  (the  changeover  of 
public administrations, national legislation, etc.) generally receive much less attention. 

The cash changeover constitutes the most visible part of a country’s changeover to the euro. It 
involves  all  enterprises,  public  administrations  as  well  as  the  general  public  and  deserves  the 
careful  planning  and  preparation  devoted  to  it.  However,  the  conversion  of  administrative, 
financial, budgetary and accounting systems in the public and private sector constitutes the most 
costly and time-consuming part of the transition. 

The national changeover plans should identify the most critical and complex systems requiring 
either  long  lead  times  or  substantial  resources  for  conversion.  They  should  assess  both  the 
human resources involved (e.g. in man/years) and the budgetary resources needed. In addition, 
budgetary appropriations should be set aside to cover all specific changeover costs of the public 
sector (conversion of IT systems, information campaigns, etc.) 

3.3. 

The changeover scenarios  

The “big bang” approach  is the favoured  scenario, in combination with a  short period  of dual 
circulation. 

The “big bang” scenario implies that euro banknotes and coins immediately become legal tender 
upon  the  country’s  adoption  of  the  euro.  In  addition,  most  countries  favour  a  short  period  of 
dual  circulation  (usually  two  weeks).  This  is  consistent  with  the  first-wave  experience,  where 
national banknotes and coins were quickly withdrawn, particularly in the countries which were 
well prepared.  

After the period of dual circulation, citizens and enterprises can continue for a certain period to 
exchange  their  legacy  cash  at  banks  without  cost.  The  central  bank  will  in  most  countries 
exchange the national currency into euro without any cost or time limit.  

3.4. 

Dual circulation 

Several  plans  provide  for  early  and  substantial  frontloading3  and  sub-frontloading,  while  the 
withdrawal of legacy cash is generally neglected. 

Estonia and Slovakia have already adopted specific arrangements for the frontloading of banks 
and the sub-frontloading of retailers and other businesses, usually several months before €-day. 
Lithuania  and  Slovenia  will  have  to  set  ambitious  objectives  for  their  frontloading  and  sub-
frontloading activities, otherwise a short period of dual circulation might be untenable. Deferred 
debiting rules should ensure that banks and enterprises are not discouraged from ordering euro 
cash at an early stage. 

Shops  are  generally  expected  to  give  change  only  in  euro  as  from  €-day,  although  it  often 
remains  unclear  how  this  principle  is  going  to  be  implemented.  A  swift  and  complete 
changeover of ATMs to the euro is generally foreseen. 

Except for the coin collection campaign mentioned in the Estonian plan, little attention is paid to 
the return of national currency cash. The massive backflow of national currency banknotes and 

3 

“Frontloading”  refers  to  the  advance  supply  (before  €-day)  by  the  central  bank  of  euro  banknotes  and 
coins to banks since these institutions play a central role in injecting cash into the economy. Banks will in 
turn “sub-frontload” part of these notes and coins to retailers and other businesses in order to ensure that 
they can start to give change in euro as from €-day. 

EN 

5 

   EN 

 
                                                 
coins  however  caused  major  logistical  difficulties  in  the  first-wave  countries,  leading  to 
significant delays in the shipping and counting of national currency notes and coins and in the 
crediting of accounts. Future entrants should properly anticipate this problem.  

3.5. 

Consumer protection 

The latest Eurobarometer surveys show that 75 % of citizens in the recently acceded Member 
States  express  fears  of  having  to  pay  abusive  prices  during  the  changeover.  The  four  existing 
changeover plans which have been adopted so far (Estonia, Lithuania, Slovenia and Slovakia) 
rightly pay considerable attention to consumer protection aspects, although it should at the same 
time be recognised that the overall impact of the cash changeover to the euro on prices appeared 
minimal during the first-wave experience (it was estimated at between 0.1 and 0.3%) and was 
rather linked to citizens’ erroneous perception of such price rises4. 

The  four  plans  mentioned  above  provide  for  mandatory  dual  price  displays  for  a  certain 
duration, not only in shops but often also on related items (bank statements, product catalogues, 
etc.).  The  total  duration  of  this  obligation  varies  considerably  from  one  country  to  another:  4 
months  in  Lithuania,  12  months  in  Estonia  and  16  months  in  Slovenia.  In  Slovakia,  the 
obligation starts one month after the fixing of the conversion rate and lasts until one year after 
the  adoption  of  the  euro,  followed  by  a  6-month  period  of  voluntary  dual  display.  In  all  four 
countries, the public sector is expected to show exemplary behaviour in fair pricing by rounding 
amounts to the advantage of the citizen. 

Monitoring of price evolutions by public institutions (with the possible involvement of certain 
consumer  organisations)  is  foreseen  in  the  Estonian  and  Slovakian  plans.  The  results  will  be 
reported to the public on a regular basis. Consumers will be able to report possible abuses. 

Other useful means of avoiding undue price rises and the perception thereof receive much less 
attention.  For  example,  current  plans  contain  no  mention  of  possible  agreements  concluded  at 
national level with representative retail organisations in order to guarantee fair pricing practices. 
Similar  commitments  made  at  the  level  of  the  individual  retailers  (e.g.  “fair-pricing”  stickers) 
are currently only being considered in Lithuania.  

3.6. 

Supply of euro banknotes and coins 

Euro-area entrants can start producing euro banknotes and coins as soon as the Council lifts the 
country’s derogation. As regards euro banknotes, the ECB has decided that these countries will 
be able to borrow the necessary volumes of euro banknotes from the Eurosystem and, as part of 
the pooling arrangement, pay them back after the changeover with euro banknotes produced by 
their own supply arrangements. 

Several  countries  have  a  national  mint  (Czech  Republic,  Lithuania,  Hungary,  Poland  and 
Slovakia) which will produce the entirety or part of the country’s euro coin requirements. The 
other  countries  will  order  the  necessary  volumes  of  euro  coins  abroad.  In  both  cases,  all 
preparatory  activities,  including  test  strikes  of  the  euro  coins  with  the  country’s  national  side, 
can be completed before the decision on the country’s entry into the euro area has been taken. 
The process for the selection of the national side has been completed in three countries (Estonia, 

4 

EN 

Detailed  statistical  analysis  conducted  by  Eurostat  has  shown  that  significant  price  rises  have  indeed 
occurred  in  certain  service-related  areas  (restaurants,  cafes,  hairdressers,  movie  theatres  and  sporting 
services), which only represent a very minor part of households’ overall consumption and hence only had 
a marginal impact on the overall HICP consumer price index. Since such items are consumed on a regular 
basis, 
inflation.  See  also: 
http://epp.eurostat.cec.eu.int/cache/ITY_PUBLIC/2-18062003-AP/EN/2-18062003-AP-EN.HTML 

influenced  consumers’  perception  of 

they  however 

strongly 

6 

   EN 

 
                                                 
Lithuania  and  Slovenia:  see  Annex  3),  is  being  finalised  in  Latvia  and  has  been  launched  in 
Cyprus and Slovakia. 

3.7. 

Information and communication 

Adequate information and communication is essential to enable the public to switch over to the 
euro  with  complete  confidence.  The  experience  gained  in  the  previous  communication 
campaigns  will  provide  guidance  for  the  communication  activities  in  the  recently  acceded 
Member States. 

National campaigns should start well before the introduction of the euro and extend somewhat 
beyond  the  end  of  the  dual  circulation  period.  In  countries  intending  to  introduce  the  euro  in 
2007  or  2008,  there  is  thus  little  time  left  to  prepare  and  implement  a  fully-fledged 
communication campaign.  

The countries expecting to form part of the euro area as from 1 January 2007 (Estonia, Lithuania 
and  Slovenia)  drafted  their  communication  strategies  in  mid-2005.  These  plans  are  very 
ambitious, despite the short time span for implementation. The campaigns are scheduled to start 
in the last quarter of 2005 and continue till June 2007. The most intensive part of the campaign 
will start in September 2006 until the end of the dual circulation period and will be multimedia 
and  multi-disciplinary  in  nature.  As  €-day  approaches,  TV  and  radio  will  become  the  key 
communication tools towards the general public.  

Cyprus and Malta are still in a preparatory stage, while Latvia should start preparations as soon 
as  possible.  Slovakia  has  already  produced  a  first  draft  communication  strategy.  The  Czech 
Republic,  Hungary  and  Poland  will  start  planning  their  information  and  communication 
activities once the practical preparations have been initiated. 

4. 

THE PREPARATIONS AT COMMUNITY LEVEL 

Ongoing  preparations  at  Community  level  mainly  cover  three  specific  areas:  legislation,  euro 
coin designs, and information and communication policy. 

4.1. 

Preparing the Community legal framework  

Council  Regulation  (EC)  No  974/98  governs  the  introduction  and  the  use  of  the  euro  in  the 
eleven  Member  States  which  established  the  euro  area  on  1  January  1999.  It  was  amended  in 
June  2000  in  order  to  allow  Greece  to  join  the  euro  area  in  2001.  On  2 August  2005,  the 
Commission adopted a proposal for a amending this Regulation (COM (2005)357), in order to 
prepare and adjust the legal framework for all countries adopting the euro in the future. Besides 
introducing  a  number  of  technical  adaptations,  the  proposal  creates  necessary  leeway  by 
allowing for different changeover scenarios than the one applied for the first twelve euro-area 
Member States.  

The Commission proposal contains three types of transition scenarios, and each Member State 
concerned would be able to choose the most appropriate one for its specific situation: 

(i) 

a “Madrid-style” scenario including a transitional period comparable to the one which 
was  applied  in  the  first-wave  countries.  Under  this  scenario,  there  is  a  transitional 
period  between  the  adoption  of  the  euro  as  the  national  currency  and  euro  banknotes 
and  coins  becoming  legal  tender.  The  length  of  the  period  is  to  be  decided  by  the 
Member States concerned; 

EN 

7 

   EN 

 
(ii) 

(iii) 

a “big bang” scenario, whereby euro banknotes and coins are introduced immediately 
upon adoption of the euro as the country’s currency (i.e. no transitional period); 

a  “big  bang”  scenario  with  a  “phasing-out”  period,  during  which  references  to  the 
national  currency  in  new  legal  instruments  would  still  be  allowed  in  the  relevant 
country for a period of one year at most5 after the “big bang”. 

The  proposal  moreover  foresees  that  banks  will  be  required  to  exchange  banknotes  and  coins 
denominated  in  the  national  currency  for  euro  banknotes  and  coins  free  of  charge  during  the 
dual circulation period, subject to certain ceilings. This practice was already recommended by 
the Commission in the past and widely applied, and will now become a general obligation6. 

4.2. 

The designs of the common and national sides of the euro coins 

The common side of the bi-colour coins (1- and 2-euro) and the “Nordic Gold” coins (10-, 20- 
and 50-cent) currently represents the European Union before it was enlarged on 1 May 2004 and 
only  depicts  15  of  the  25  EU  Member  States.  Following  a  Recommendation  from  the 
Commission,  the  Ecofin  Council  decided  on  7  June  2005  that  the  modified  designs  of  the 
common  side  should  depict  a  geographical  representation  of  Europe  (see  Annex 4).  All 
technical and design work should be completed in time for new euro-area entrants to strike and 
issue their euro coins with the new common side already from 2007.  

The designs of the national sides are selected by each individual country. The Ecofin Council 
however  agreed  on  7  June  2005  to  apply  some  common  guidelines  in  order  to  strengthen  the 
euro  coinage  system.  In  view  of  the  increasing  number  of  national  sides,  it  was  decided  that 
future national sides should bear a clear indication of the issuing country (or an abbreviation of 
it) so that the origin of each coin can be easily identified by interested coin users. Moreover, the 
denomination of the coin and/or the name of the currency (euro) should not be repeated on the 
national  side,  unless  a  different  alphabet  is  used,  since  both  elements  already  appear  on  the 
common side. Existing design features for the national side (twelve stars surrounding the design 
and the presence of a year mark) will continue to be applied. Member States agreed to inform 
each other in advance before adopting new designs. 

4.3. 

Information and communication policy at Community level 

The Commission Communication on the implementation of an information and communication 
strategy  on  the  euro  and  Economic  and  Monetary  Union  (COM  (2004)552)  provides  the 
framework for communication activities at Community level. This strategy is governed by the 
principles of decentralisation, subsidiarity, coordination and partnership. The strategy includes: 

–  partnerships between the Commission and the Member States; 

–  twinning programmes; 

–  networking, information relays and other natural partners; 

5 

6 

This  period  can  be  further  reduced  by  national  law,  and  moreover  be  confined  to  certain  types  of  legal 
instruments or to legal instruments adopted in certain fields. In any event, all payment operations – both 
cash and non-cash – will be exclusively carried out in euro. 
The Commission’s proposal is currently being discussed by a Council working group. The adoption of the 
text by the Council is expected in the near future, possibly before the end of the year.  

EN 

8 

   EN 

 
                                                 
–  conferences and seminars; 

–  opinion polls; 

–  external information activities; 

–  publications and other information products. 

The Commission expects to sign partnerships in the last quarter of 2005 with Estonia, Slovenia 
and Lithuania. Malta, Latvia and Cyprus are expected to follow soon with a request to negotiate 
partnerships with the European Commission.  

Seven different twinning projects between recently acceded Member States and Member States 
from  the  euro  area  are  currently  under  way,  building  on  the  expertise  of  countries  that  have 
already introduced the euro. 

Various  publications  were  prepared  on  the  euro  and  EMU,  notably  a  guide  for  SMEs  in  the 
newly acceded Member States entitled “Fit for the euro!”, proposing good practices and advice 
for  successfully  preparing  the  changeover  to  the  euro.  A  comprehensive  series  of  training 
seminars  for  journalists,  particularly  those  from  the  recently  acceded  Member  States,  was 
launched  on  EMU,  the  euro  and  its  introduction  and  the  Community’s  economic  policies  in 
general. The Commission is also in the process of preparing a series of conferences in the new 
Member States. Furthermore, opinion surveys are being carried out in both the recently acceded 
Member States and the euro area, providing important information on the public’s views on the 
euro and EMU. This will help the Commission and the new Member States to further fine-tune 
their strategies.  

5. 

THE STATE OF PUBLIC OPINION IN THE RECENTLY ACCEDED MEMBER 
STATES  

The  second  Eurobarometer  survey  on  public  opinion  in  the  newly  acceded  Member  States, 
concerning their attitudes to and knowledge of the introduction of the euro, was conducted by 
EOS Gallup in September 2005, one year after the first one, polling over 10 000 citizens.  

5.1. 

Citizens want to be better informed 

The  level  of  interest  in  the  introduction  of  the  euro  is  still  rather  low,  with  only  48%  of 
respondents  declaring  an  interest  and  49%  being  uninterested.  These  results  are  no  doubt 
influenced  by  the  remaining  uncertainties  on  the  euro  introduction  dates  in  the  individual 
countries. 

Knowledge among the general public about the euro and the conditions for its adoption remains 
relatively  low.  Most  of  those  polled  (58%)  are  unaware  that  the  adoption  of  the  euro  is  a 
mandatory step for their country, and do not know how many countries are already in the euro 
area. However, a majority of respondents know the target date for the introduction of the euro in 
their country and most of them are familiar with euro banknotes and coins.  

Half of the respondents (51%, + 3%) 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.  As  in  2004,  a  majority  of  the  citizens  (86%)  wish  to  be  informed  sooner  rather  than 
later.  As  a  source  of  information,  the  majority  of  respondents  put  most  trust  in  their  national 
central  bank  (62%),  far  ahead  of  any  other  institution  (only  31%  trust  their  government  or 

EN 

9 

   EN 

 
national and regional authorities and 23% the European institutions). Citizens in these Member 
States  have  a  preference  for  information  campaigns  based  on  TV  spots  (73%)  or  newspaper 
advertisements  (73%),  followed  by  radio  spots  (64%)  and  leaflets  and  brochures  (64%).  Most 
citizens  want  information  campaigns  to  focus  on  the  practical  implications  of  the  euro  (their 
salaries,  bank  accounts,  etc.)  and  on  how  to  prevent  cheating  in  the  currency  conversion.  The 
dual display of prices is seen as the most essential tool for preparing the population for the new 
scale of values.  

5.2. 

General attitude towards the euro 

The consequences of the introduction of the euro are perceived to be less positive than in 2004. 
38% of the citizens believe that the introduction of the euro will have positive consequences (a 
decline of 6% compared to 2004) at national level, while 46% (+5%) believe that it will have 
negative consequences. While 40% of respondents felt in 2004 that the consequences would be 
positive at personal level, that figure diminishes to 36% in 2005. Furthermore, the proportion of 
those anticipating negative consequences increases from 44% to 49%. The gap between citizens 
declaring  themselves  to  be  happy  that  the  euro  will  replace  their  national  currency  (37%)  and 
those who say that they are unhappy about it (53%) has increased from 5 points in 2004 to 16 
points in 2005. Still, in some Member States (Hungary and Slovenia) a majority of citizens is 
happy with the euro replacing the national currency. 

Concerning  the  time  frame  for  adopting  the  euro,  17%  of  respondents  in  these  ten  countries 
indicate that they would like the euro to become their currency as soon as possible, while 32% 
respond that some time should elapse before it is adopted. A growing relative majority (46%, an 
increase of 6%) believes that it should be adopted as late as possible. However, citizens continue 
to  be  as  aware  as  in  2004  of  the  practical  advantages  of  the  euro,  with  92%  and  80% 
respectively recognising its convenience for travelling and making purchases in the euro area, 
and 74% acknowledging that it eliminates the need for currency exchange inside the euro area. 
A  majority  of  respondents  (51%)  does  not  believe  that  the  changeover  will  cause  them  any 
major  inconvenience.  Nevertheless,  the  fear  of  being  cheated  or  having  to  pay  abusive  prices 
during the changeover has increased slightly in one year (from 71% to 75%) and 48% of people 
continue  to  believe  that  the  introduction  of  the  euro  will  increase  inflation  while  only  24% 
believe that the euro will help to maintain price stability. 

5.3.  Main lessons from the survey 

The general perception of the introduction of the euro remains unsatisfactory, while the level of 
knowledge remains roughly the same. This may be partly explained by the current stalemate on 
the  European  Constitution  resulting  from  the  negative  referenda  in  two  Member  States,  the 
ongoing discussions on the EU Financial Perspectives, as well as by specific domestic factors. 
The positive perception of the practical consequences and advantages of the euro indicate that 
the  results  op  the  opinion  poll  might  underestimate  the  support  for  the  euro.  The  socio-
demographic breakdown of the results shows that men, young people and  educated  and urban 
populations are much more in favour of the euro than the rest of the population. 

There is little doubt that a part of the population is emotionally attached to the national currency, 
as  was  the  case  in  the  first-wave  countries.  Support  for  the  euro  in  the  Member  States  now 
forming  part  of  the  euro  area  increased  markedly  after  the  launch  of  major  information 
campaigns.  

The citizens in the newly acceded Member States need more information on the euro and they 
would like to be prepared well in advance of the changeover. Major information campaigns will 
help to increase knowledge among citizens and support in favour of the euro.  

EN 

10 

   EN 

 
6. 

CONCLUSION 

Out  of  the  eleven  EU  Member  States  with  a  derogation,  nine  have  set  a  target  date  for  the 
adoption of the euro. Four countries have adopted the first version of their national changeover 
plan and three of them have adopted their communication strategies.  

The state of progress in the different countries is quite uneven although in general the pace of 
ongoing  preparations  will  need  to  be  stepped  up  if  the  countries  want  to  be  ready  in  time, 
particularly if the “big bang scenario” is implemented as intended by most Member States, since 
it  does  not  allow  a  transitional  period  for  enterprises  and  public  administrations  to  complete 
their preparations. 

The  state  of  public  opinion  vis-à-vis  the  euro  in  the  recently  acceded  Member  States  remains 
implementing  comprehensive 
unsatisfactory.  This  constitutes  an  additional  reason  for 
communication programmes.  

EN 

11 

   EN 

 
Czech Republic 
National target date for euro adoption  1 January 2010 (*) 

Estonia 
1 January 2007 

Cyprus 
1 January 2008 

Latvia 
1 January 2008 

STATE OF PRACTICAL PREPARATIONS (September 2005) 

ANNEX 1 

ERM II entry 
National co-ordinating institution 

(*) Preliminary date

Approved National Changeover Plan   The  Czech  Republic’s  Euro 
Accession  Strategy  was  approved 
by 
in 
October 2003 

Government 

the 

28 June 2004 
The  National  Changeover  Committee, 
chaired  by  the  Secretary  General  of  the 
Ministry of Finance, created on 27/01/05 
First  draft  of  euro  adoption  plan  was 
approved on 1 September 2005 

2 May 2005 
Joint  coordination  by  the  Minister  of 
Finance and the Central Bank of Cyprus, 
created on 29/12/04 

2 May 2005 
The  Steering  Committee  for  the  preparation  and 
coordination  of 
the  euro  changeover  was 
established on 18 July 2005 
A  report  on  the  introduction  of  the  euro  was 
approved  by  the  government  on  21  June  2005. 
The  National  Changeover  Plan  will  be  approved 
in November 2005. 

http://www.cnb.cz/euro_index.p

http://www.fin.ee/index.php?id=13324 

hp 

Big-Bang 

2 weeks 

Big-Bang 

1 month 

Big-Bang 

2 weeks 

Type of scenario 

Dual circulation period  

Exchange of national currency 

Frontloading and sub-frontloading 

Dual display of prices 
Design of the national side 

Competition under consideration 

Nr of different coin designs 
National mint 
Estimation on the need for banknotes 
and coins 
National law adaptations 
Communication strategy 

Partnership agreement 
Twinning agreement 

Yes 
230  million  banknotes  and  950 
million coins 

central  bank  will 

The 
exchange 
banknotes  for  10  years  and  coins  for  2 
years. 
November – December 2007 

Commercial  banks  (banknotes  and  coins):  at 
least  6 months  free  of  charge.  Central  Bank 
(banknotes and coins): indefinitely 
Frontloading  from  September  2006;  sub-
frontloading also foreseen. 
Compulsory: 6 months before and after €-day   
Design  selected  and  published  December 
2004 
1 design 
No 
150-200 million coins 

Competition launched 

3 designs 
No 

The  central  bank  will  exchange  without  time 
limit. 

December 2007 

October 2007 till June 2008 
In final stage 

4 designs 
No 
87 million banknotes and 300 million coins 

Umbrella law under consideration 
Yes,  endorsed  by  the  National  Changeover 
Committee on 21/06/05 
In process 

In process  

Between IE – MT – CY: communication 
and information strategy; between GR – 
CY:  technical  issues  related  to  the 
changeover 

EN 

12 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATE OF PRACTICAL PREPARATIONS (September 2005) 

Hungary 

National target date for euro adoption 1 January 2010  
ERM II entry 
National co-ordinating institution 

Preparatory work is ongoing in the 
Ministry of Finance and Magyar 
Nemzeti Bank (Central Bank of 
Hungary). 

Approved National Changeover Plan 

Malta 
1 January 2008 
2 May 2005 
Two  Committees  appointed  on  13/06/05:  a 
Steering  Committee  and  a  Euro  Changeover 
Committee reporting to it  

Poland 
Not decided yet 

Inter-institutional  working  group  MoF-
NBP 

Type of scenario 

Big-Bang with possible phasing out 
features  

Dual circulation period  

1 month 

Exchange of national currency 

Frontloading and sub-frontloading 
Dual display of prices 

Design of the national side 
Nr of different coin designs 
National mint 
Estimation on the need for banknotes 
and coins 
National law adaptations 
Communication strategy 

Partnership agreement 
Twinning agreement 

Yes 

No 

In process 

Between AU – HU: communication 
and information strategy 

Between  IE  –  MT  –  CY:  communication  and 
information strategy; 

Between  DE  –  PL:  communication  and 
information strategy and practical issues 

Public survey 

Yes  
Between 4 and 5 billion coins 

Approved 
8 designs 
No 
74 million banknotes and 235 million coins 

Slovenia 
1 January 2007 
28 June 2004 
The  Coordinating  Committee  for  Technical 
Preparations to Introduce the Euro was created in 
July 04. 

A  Masterplan  for  the  Euro  Changeover  was 
approved in January 2005 

http://www.bsi.si/html/eng/projects/euro/ind
ex.html 
Big-Bang 

7 days 

Commercial banks exchange banknotes and coins 
free of charge until 1 March and the Central Bank 
without time limit 

From 1 March 2006 till 30 June 2007 

Umbrella law 
Endorsed  by  Bank  of  Slovenia  on  19/05/05  and 
by the government on 2/06/05 
In process 
Between  NL  –  SI  –  LT  :  communication  and 
information strategy 

EN 

13 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATE OF PRACTICAL PREPARATIONS (September 2005) 

National target date for euro adoption 
ERM II entry 
National co-ordinating institution 

Approved National Changeover Plan 

Lithuania 
1 January 2007 
28 June 2004 
Commission  for  the  Coordination  of  the  Adoption  of  the 
Euro in Lithuania, established on 30/05/05 
The  first  version  of  the  National  Euro  Adoption  Plan  was 
approved by the government on 27 Sept 2005 

Type of scenario 
Dual circulation period  

Big-Bang 
15 days 

Exchange of national currency 

Commercial banks: free of charge during 60 days after €-day. 
Central bank: free of charge for an unlimited period.  

Frontloading and sub-frontloading 

Dual display of prices 

Frontloading  of  euro  banknotes  to  commercial  banks  by  20 
December 2006 at the latest and of euro coins by 1 October 
2006 at the latest. 
From 60 calendar days before €-day until 60 days after €-day 
(compuls.) 

Design of the national side 

Approved 

Nr of different coin designs 
National mint 
Estimation on the need for banknotes and coins  118.3 million banknotes and 

3 designs 
Yes  

Slovakia 
1 January 2009 

Ministry of Finance 

Sweden 
Not decided yet 

The  National  Changeover  Plan  was  approved  on  6  July 
2005 

http://www.nbs.sk/PRESS/PR050707.HTM 
Big-Bang  
16 days 

Commercial banks exchange banknotes until end 2009 
and  coins  until  June  2009  (free  of  charge).  The  Central 
Bank exchanges banknotes without time limit 
and coins for 5 years. 
One to 4 months prior to  
€-day 

Compulsory: from one month after fixing of conversion 
rate  till  one  year  after  euro  adoption.  Voluntary:  for  an 
additional 6 months 
Competition launched 

Yes  

National law adaptations 

Communication strategy 
Partnership agreement 
Twinning agreement 

290 million coins 
The draft Law on the Adoption of the Euro is prepared. 

Approved by the government on 27 September 2005 
In process 
Between  NL  –  SI  –  LT  :  communication  and  information 
strategy  
Under  consideration:  between  BE  –  LT  on  tax  and  debt 
issues 

Umbrella  law  and  a  second  and  a  third  group  of  laws 
under consideration 
In process 

Between  AU  –  SK:  communication  and  information 
strategy; 
Between  BE  –  SK:  technical  issues  related  to  the 
changeover 

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIST OF RELEVANT CHANGEOVER CHARACTERISTICS 

ANNEX 2 

CZ  EE  CY  LV  LT  HU  MT  PL 
X 

X 

X 

X 

X 

X 

X 

X: Approved or established 

P: In progress 

National target date 
National Changeover Plan 
National Changeover Committee  
Type of scenario  
Length of dual circulation period 
Exchange  at  commercial  banks  after  dual 
circ. 
Exchange at central bank after dual circ. 
Frontloading of financial institutions 
Sub-frontloading  of  retailers  and  general 
public 
Deferred debit  
Piggy coin operations 
Arrangements for bank opening hours 
Loading of ATMs 
Denominations of notes in ATMs 
Transport and storage for euro cash 
Transport and storage for legacy cash 
Change only given in euro by retailers 
Euro coins kits for retailers 
Euro coins kits for the general public 
Design of national side of the euro coins 
Supply arrangements for euro coins 
Adaptations of national law 
Dual display of prices before €-day 
Dual display of prices after €-day 
Dual display of utility bills 
Dual display of civil servants’ wages 
Voluntary dual display of prices 
Agreements on price stability 
Formalised fair-pricing agreements 
IT preparations 
Training for cash handlers 
Accounting adaptations 
Share capital conversion 
Rounding rules in legislation 
Eval.  of  the  costs  involved  for  the  public 
sector  
Communication strategy  
Partnership agreement 
Twinning agreement  

X 
X 
X 

X 

X 
X 
X 

X 
X 

P 

P 

X 
X 

X 
X 
X 
X 
X 
X 

X 
X 
X 

X 

X 
P 
P 
X 
X 

X 
X 

X 
X 
X 
X 
X 
X 

X 
X 
X 

X 

X 
P 
P 
X 
X 
X 

X 
X 
X 
X 
X 

X 
P 

P 

X 

X 
P 
X 

X 

P 

X 

X 

SI 
X 
X 
X 
X 
X 
X 

X 

X 

P 
X 
X 
X 

X 

X 
P 
X 

SE 

SK 
X 
X 
X 
X 
X 
X 

X 
P 
P 

P 

X 
P 

P 
P 
X 

P 
P 
X 
X 
X 
X 

X 
X 

X 
X 
X 
X 
X 

P 

X 

EN 

15 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Euro coin designs of the future national side of Estonia 

ANNEX 3

Bi-metallic coins  
(1- and 2-euro) 

Nordic Gold coins  
(10-, 20- and 50-cent) 

Copper plated coins  
(1-, 2- and 5-cent coins)

Euro coin designs of the future national side of Lithuania 

Bi-metallic coins  
(1- and 2-euro) 

Nordic Gold coins  
(10-, 20- and 50-cent) 

Copper-plated coins 
(1-, 2- and 5-cent) 

Euro coin designs of the future national sides of Slovenia  

     2-euro coin 

     1-euro coin  

        50-cent coin 

      20-cent coin

      10-cent coin 

      5-cent coin  

      2-cent coin 

   1-cent coin 

EN 

16 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX 4

New common face designs  
of the 1- and 2-euro coins  

New common face designs  
of the 10-, 20- and 50-cent coins 

EN 

17 

   EN