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 - Third Report on the practical preparations for the future enlargement of the euro area {SEC(2006) 785}
Date: 2006-06-23
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, 22.06.2006 
COM(2006) 322 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 

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

{SEC(2006) 785} 

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TABLE OF CONTENTS 

1. 

2. 

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

STATE OF PREPARATIONS AT NATIONAL LEVEL........................................... 3 

2.1. 

Preparations in Slovenia............................................................................................... 3 

2.1.1.  General framework....................................................................................................... 3 

2.1.2.  Financial sector and enterprises ................................................................................... 4 

2.1.3.  Public administration ................................................................................................... 5 

2.1.4.  Consumers and the general public ............................................................................... 5 

2.1.5.  Conclusion.................................................................................................................... 6 

2.2. 

The preparations in the other Member States .............................................................. 6 

2.2.1.  National target dates for the adoption of the euro........................................................ 6 

2.2.2.  Overall framework for the practical preparations ........................................................ 8 

2.2.3.  Preparations involving the financial sector or related to the cash changeover ............ 8 

2.2.4.  Preparations affecting enterprises in general ............................................................... 9 

2.2.5.  Need for agreements between retailers and consumers on stable prices ................... 10 

2.2.6.  Public administrations................................................................................................ 11 

2.2.7.  Communication activities........................................................................................... 11 

2.2.8.  Conclusion.................................................................................................................. 12 

3. 

STATE OF PUBLIC OPINION IN THE RECENTLY ACCEDED MEMBER 
STATES ..................................................................................................................... 12 

ANNEX 1 - Preparations at Community level......................................................................... 13 

ANNEX 2 - List of relevant changeover characteristics.......................................................... 16 

ANNEX 3 - Table: State of practical preparations (June 2006) .............................................. 18 

ANNEX 4 - Euro coins designs of the future national sides of Slovakia ................................ 28 

ANNEX 5 - State of public opinion in the recently acceded Member States .......................... 29 

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

1. 

INTRODUCTION 

The euro area currently consists of twelve EU Member States. A Member State's entry into 
the  euro  area  is  conditional  upon  the  Member  State  meeting  the  "Maastricht"  convergence 
criteria  laid  down  in  the  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  European  Central  Bank  in  their  regular  Convergence  Reports.1  While  Denmark  and  the 
United Kingdom have a special “opt-out” status, the remaining eleven countries are “Member 
States with a derogation”2 which are expected to adopt the euro once the necessary conditions 
are fulfilled. 

In addition to fulfilling the entry criteria, the introduction of the euro requires careful planning 
and extensive practical preparations, in which the public and the private sector as well as the 
public at large need to participate. The Commission has 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. The reports on the practical preparations are not linked to the convergence 
reports.  The  first  and  the  second  report  on  the  practical  preparations  for  the  future 
enlargement of the euro area3 were adopted in November 2004 and 2005, respectively.  

In  view  of  the  likely  enlargement  of  the  euro  area  with  Slovenia  on  1  January  2007,  the 
present  report  is  issued  at  an  earlier  stage  and  pays  special  attention  to  the  ongoing 
preparations in this Member State. More generally, the report focuses on the state of ongoing 
practical  preparations  at  the  national  level.  The  preparations  at  Community  level  are 
summarised in Annex 1. 

2. 

STATE OF PREPARATIONS AT NATIONAL LEVEL 

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2.1. 

Preparations in Slovenia 

2.1.1.  General framework 

Slovenia plans to introduce the euro on 1 January 2007.  

Slovenia's Masterplan for the Introduction of the Euro was approved by the Bank of Slovenia 
and the Slovenian Government in January 2005 and updated on 2 February 2006. It provides 

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The latest Commission Convergence Reports were adopted on 16 May 2006 upon request of Lithuania 
(COM(2006)  223)  and  Slovenia  (COM(2006)  224).  The  Commission  will  issue  the  next  regular 
Convergence  Report  in  autumn  2006.  The  ECB's  Convergence  Report  was  adopted  on  15  May  2006 
upon request of Lithuania and Slovenia. 
The  ten  countries  which  joined  the  European  Union  on  1  May  2004  were  conferred  the  status  of 
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. 
COM(2004) 748 of 10 November 2004 and COM(2005) 357 of 4 November 2005. 
Based on information collected up to 9 June 2006. 
See  also  Annex  2  which  summarises  certain  relevant  changeover  characteristics  and  Annex  3  which 
provides a synoptic overview of the state of preparations in the Member States concerned. 

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for a "big bang" scenario, whereby the dual circulation period is extended to 14 days, instead 
of 7 days as originally foreseen.  

2.1.2.  Financial sector and enterprises 

As far as the cash changeover is concerned, retailers will give change in euro only as from €-
day.6 Details of the frontloading7 arrangements have been defined, namely that frontloading 
of euro coins will start on 1 September 2006 and of euro banknotes on 11 December 2006. 
Sub-frontloading of euro coins and banknotes to businesses and retailers is envisaged as from 
1  and  11  December  2006,  respectively.  Business  and  retailers  will  receive  pre-packed  coin 
kits containing a suitable structure of denominations for initial cash transactions. 150 000 coin 
starter  kits  will  be  made  available  to  the  general  public  via  commercial  banks  as  from  15 
December  2006.  This  relatively  small  number  of  starter  kits  could  usefully  be  increased  to 
provide more households with euro coins before €-day.  

In the second half of 2006, the banking sector will upgrade software and ATMs so that tolar 
banknotes  can  only  be  withdrawn  until  31  December  2006,  whereas  only  10  and  20-euro 
banknotes will be dispensed as from 1 January 2007. Since it is currently foreseen that only 
60 to 70% of ATMs will dispense euro banknotes as from 1 January 2007, further efforts are 
needed to achieve a full and timely conversion. In addition, it should be ensured that the bank 
opening  hours  are  extended  around  €-day.  Moreover,  specific  measures  need  to  be 
implemented  in  order  to  cope  with  the  massive  backflow  of  national  cash  in  the  first  days 
after the introduction of the euro. 

As far as commercial banks are concerned, Friday 29 December 2006 will be the last working 
day in tolars. From 30 December 2006 to 2 January 2007 banks will not carry out transactions 
for customers, but will prepare the conversion of their systems in order to be ready to accept 
cash and non-cash euro payments as from the first working day of 2007. According to the Act 
on Dual Display of Prices in tolar and euro, which entered into force on 26 November 2005, 
the dual display of prices for goods and services is compulsory since 1 March 2006. Until the 
convergence rate has been irrevocably fixed, the ERM central rate is used as a substitute of 
the conversion rate. The act provides for a large number of exceptions to the requirement of 
dual price display, e.g. for petrol stations, small enterprises and farmers selling to end users, 
for catalogues, for the sale of meat, fish and bread, books and other published products, and 
for vending machines. 

Regarding  the  changeover  of  capital  markets,  the  update  of  the  national  changeover  plan 
specifies the conversion of share capital, the redenomination of securities and the changes to 
the Companies Act which are currently under preparation.  

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€-day is the day on which euro banknotes and coins are introduced in a given Member State. Under the 
"big  bang"  scenario  the  introduction  of  euro  cash  coincides  with  the  introduction  of  the  euro  as  the 
currency. 
Frontloading  refers  to  the  supply  of  euro  banknotes  and  coins  by  the  national  central  banks  to  credit 
institutions before €-day. Sub-frontloading implies the distribution by credit institutions of frontloaded 
euro banknotes and coins before €-day to retailers and other businesses and possibly even to the public 
at large. 

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2.1.3.  Public administration 

The draft Introduction of the Euro Act was sent to the ECB for consultation on 3 May 2006. 
This  act  will,  inter  alia,  provide  rules  on  the  changeover  to  the  euro,  specify  the  dual 
circulation period and the period for exchanging tolar banknotes and tolar coins into euro, and 
regulate the conversion of public debt. Amendments to the Salary Tax Act have been adopted 
in  December  2005,  while  amendments  to  the  Bank  of  Slovenia  Act,  to  the  Payment 
Transactions Act, to the Misdemeanours Act and to the Companies Act have been adopted in 
April  2006.  A  draft  amendment  to  the  Collateralisation  Act  has  been  submitted  to  the 
parliament in April 2006. A special implementing regulation will deal with tax issues. It will, 
inter alia, determine the currency in which taxpayers must submit tax declarations after €-day 
for periods prior to that date. It should be ensured that tax amounts as well as other monetary 
amounts  (e.g.  in  social  security  rules)  which  are  adapted  to  convenient  amounts  in  euro  are 
adjusted to the benefit of the citizen, thus providing a good example to enterprises with a view 
to price stability. 

In order to avoid a significant supply of national cash immediately before €-day, the payment 
date  for  pensions,  which  are  usually  paid  in  cash,  will  be  advanced  from  29  December  to 
22 December 2006.  

The eight designs for the national sides of the euro coins have been selected. As Slovenia does 
not  have  a  national  mint,  the  euro  coins  will  be  produced  abroad.  The  Mint  of  Finland  has 
been  chosen as  the  producer.  In  February 2006, the Slovenian Minister of  Finance  signed a 
Memorandum  of  Understanding  with  the  Member  States  of  the  euro  area  and  the  European 
Commission on the start of euro coin production and on the preparatory tasks prior to the start 
of production. 

2.1.4.  Consumers and the general public  

In  order  to  avoid  price  increases  at  the  occasion  of  the  introduction  of  the  euro,  Slovenia's 
Consumer Association is monitoring price developments in the retail sector for specific goods 
and  services  in  co-operation  with  the  Statistical  Office  of  the  Republic  of  Slovenia.  The 
Association has announced that it will publish in the mass media the names of retailers who 
increase prices excessively during the changeover period.  

In  order  to  be  fully  effective,  such  measures  need  to  be  accompanied  by  an  agreement 
between  retailers  and  consumers  in  which  retailers  commit  themselves  to  fair  practices 
concerning dual display of prices and undertake not to use the introduction of the euro as an 
opportunity for excessive price increases. Such an agreement could possibly be supplemented 
by a "fair-trader" campaign under which retailers abiding by the agreement receive labels or 
stickers allowing them to signal their commitment to transparent and fair pricing.  

On  8  November  2005,  Slovenia  and  the  European  Commission  concluded  a  Partnership 
Agreement  concerning  Slovenia's  information  and  communication  activities  on  the  euro.  In 
the  first  stage  (June  2005  -  March  2006)  some  major  activities  have  been  launched,  for 
example a special national website on the euro changeover was set up on 15 February 2006, a 
toll  free  phone  line  is  operational  for  the  public  at  large,  the  first  informational  publication 
("Euro is coming") has been prepared and is to be sent to all households, a corporate identity 
has  been  chosen  under  the  slogan  "The  euro  –  for  all  of  us".  In  co-operation  with  the 
European  Commission,  a  seminar  for  journalists  and  a  conference  have  been  organised  in 
March 2006. On 12 June 2006, the "euro coin genesis exhibition" was displayed in Ljubljana. 

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Slovenia  is  participating  in  a  twinning  programme  with  the  Netherlands  in  order  to  benefit 
from the Dutch experience in terms of communication on the euro. 

According to the Eurobarometer survey of April 2006, the Slovenian public is one of the most 
enthusiastic about the introduction of the euro in the recently acceded Member States.  

Share of respondents … 

Table 1 

in Slovenia   in 

the 

recently 
acceded  Member 
States (average) 

…  expecting  positive  consequences  of  the  introduction  of  the 
euro for their country 

58% 

52% 

… who are personally happy that the euro will/could replace the 
national currency 

64% 

48 % 

… who feel well informed about the euro  

…  who  think  that  the  introduction  of  the  euro  will  increase 
inflation 

80% 

65% 

37% 

46% 

… who are afraid of abuses on prices during the changeover 

70% 

74% 

2.1.5.  Conclusion 

Slovenia's practical preparations for the introduction of the euro appear to be in an advanced 
stage and to cover most of the relevant changeover features. Further steps are necessary in the 
field  of  consumer  confidence  building  measures  where  an  agreement  between  retailers  and 
consumers on stable prices should be concluded as soon as possible. In order to ensure a quick 
and smooth supply of euro cash to citizens as from €-day, the proportion of ATMs converted 
to  dispensing  euro  banknotes  should  be  higher  than  currently  envisaged  and  come  close  to 
100%. Moreover, the number of starter kits for the general public could be increased. Bank 
opening hours should be extended around €-day.  

2.2. 

The preparations in the other Member States 

2.2.1.  National target dates for the adoption of the euro 

According  to  Estonia's  original  planning,  1  January  2007  was  the  target  date  for  the 
introduction of the euro. It however became apparent in the course of the 2006 that Estonia 
would not be able to comply with the Maastricht convergence criteria in time. The Estonian 
government therefore decided on 27 April 2006 to postpone its target date to 1 January 2008.  

Lithuania  also  planned  to  adopt  the  euro  on  1  January  2007  and  requested  a  convergence 
assessment  on  16  March  2006.  The  Commission's  Convergence  Report,  which  was  adopted 
on 16 May 2006, concluded, however, that the country does not at the present stage fulfil the 
necessary  conditions  for  adopting  the  euro.  Lithuania  will  thus  not  be  in  a  position  to 
introduce the euro on the date which was originally aimed at by the government. 

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Cyprus and Malta aspire to adopt the euro on 1 January 2008. Latvia originally had the same 
target  date,  but  the  Latvian  authorities  have  recently  announced  that  they  will  need  to 
postpone  their  target  date.  Slovakia  is  aiming  to  adopt  the  euro  on  1  January  2009,  and  the 
Czech Republic and Hungary on 1 January 2010. Poland and Sweden have not put forward 
any target date. In Sweden, preparations are stalled in practice since the negative outcome of 
the  referendum  of  14  September  2003.  The  current  situation  concerning  the  national  target 
dates is summarised in Table 2.  

Target date 

1 January 2007 

1 January 2008 

1 January 2009 

1 January 2010 

Table 2 

Member States 

Slovenia 

Estonia, Cyprus, Malta 

Slovakia 

Czech Republic, Hungary 

To be (re-)defined 

Latvia, Lithuania, Poland, Sweden 

The uncertainty over the precise date at which the single currency will be introduced in any 
particular Member State is inherent to the rules-based framework laid down in the Maastricht 
Treaty,  which  requires  a  positive  assessment  of  a  number  of  convergence  criteria  before 
countries  are  allowed  to  adopt  the  euro,  and  is  therefore  unavoidable.  It  also  applied  to  the 
countries which joined the euro area in the past.  

The  consequences  of  a  deferral  of  the  introduction  of  the  euro  should  not  be  overstated. 
Despite  the  uncertainties  involved,  the  setting  (and  possible  re-setting)  of  a  credible  target 
date  remains  a  very  important  instrument  to  foster  the  convergence  process.  It  notably 
provides  incentives  to  all  actors  and  sectors  involved  and  helps  to  build  up  momentum  for 
completing practical preparations on a timely basis. The extension of the original time frame 
should thus be used to enhance and complete ongoing preparations.  

With a view to the low levels of public support registered by the recent opinion poll it seems 
appropriate  to  invest  more  time  and  resources  in  communication  on  the  euro  changeover. 
During  the  discussions  with  the  Member  States  about  their  communication  strategy,  the 
Commission recommended to take into account the possible postponement of the target date 
by elaborating a "plan B". In this framework, Estonia adopted an update of its communication 
strategy  on  18  May  2006.  Lithuania  has  started  to  update  and  revise  its  communication 
strategy.  

Some  countries  have  so  far  refrained  from  setting  a  target  date  for  euro  adoption,  notably 
because  they  consider  that  it  will  take  them  several  more  years  before  they  will  be  able  to 
meet  the  Maastricht  convergence  criteria.  Even  in  those  countries,  public  and  private 
operators have a clear interest in already starting to prepare themselves. They might first have 
to inform themselves on the modalities and the consequences of the introduction of the euro 
for their activities. Moreover, the necessary preparatory work for the introduction of the euro 
requires early planning. Finally, the implementation of the changeover preparations which are 

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economically justified should start as early as possible. For instance, whenever new financial 
or accounting system need to be developed or acquired, it would be reasonable to ensure that 
all such systems are fully euro-compatible, and do not need any further upgrading at a later 
stage.  Similarly,  major  revisions  of  existing  systems  may  constitute  an  opportunity  to 
immediately ensure euro-compatibility at low cost. 

2.2.2.  Overall framework for the practical preparations  

Four  countries  (Estonia,  Lithuania,  Slovenia  and  Slovakia)  already  adopted  their  national 
changeover plans in 2005. Both Estonia and Slovenia have updated their plan in the beginning 
of 2006. In February 2006, the Latvian government approved its National Euro Changeover 
Plan. Cyprus and Malta, which set 1 January 2008 as their target date, definitely need to step 
up  their  preparations.  In  Cyprus,  the  National  Advisory  Committee  has  approved  a  draft 
national  changeover  plan  which  has,  however,  not  yet  been  adopted  by  the  Council  of 
Ministers. The adoption of the plan is urgently required in order to provide specific and timely 
orientations  to  public  and  private  operators.  In  Malta,  the  first  comprehensive  national 
changeover plan was adopted by the government only on 12 June 2006 and therefore needs to 
be implemented at a rapid pace.  

Practical  preparations  in  the  Czech  Republic  are  still  at  preliminary  stage.  The  government 
adopted the Institutional Arrangements for the Introduction of the Euro in the Czech Republic 
on  23  November  2005.  The  document  describes  the  institutional  framework  of  the  euro 
changeover and is meant to be the basis for the development of a national changeover plan. 
There  are  no  new  developments  to  report  concerning  practical  preparations  in  Hungary  and 
Poland.  

As regards the establishment of a changeover board in charge of preparing and co-ordinating 
the national changeover, seven Member States had already established a co-ordinating body 
prior to the adoption of the previous Report last year. On 23 November last year, the Czech 
Minister of Finance has been appointed as the National Coordinator of the Euro Introduction, 
while the National Co-ordinating Group on Euro Introduction was established on 20 February 
2006.  

2.2.3.  Preparations involving the financial sector or related to the cash changeover 

Experience  has  shown8  that  frontloading  and  sub-frontloading  arrangements9  play  a  crucial 
role in considerably speeding up the cash changeover, and reducing the length of the period of 
dual  circulation,  by  making  sure  that  euro  banknotes  and  coins  can  be  immediately  used  as 
from day one. In this context it should be noted that the instantaneous switchover of all ATMs 
from  the  national  currency  to  dispensing  euro on  €-day  is  essential.  Moreover,  mainly  low-
denomination banknotes  (5-  and 10-euro) should be supplied in the early stages of the  cash 
changeover. This practice is essential in order to reduce the amount of cash retailers need for 
giving change to their customers.  

While it is true that euro cash is already widely available in the Member States preparing for 
the adoption of the euro, the proportion of enterprises and citizens already owning significant 
amounts  of  euro  banknotes  and  coins  is  probably  rather  small.  Thus,  a  systematic  sub-

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Frontloading and sub-frontloading formed part of  the preparations of the 2002 cash changeover in all 
euro-area Member States, see Communication from the Commission to the European Council, Review 
of the introduction of euro notes and coins, 6.3.2002, COM(2002) 124 final.  
See footnote 7 for the definition of frontloading and sub-frontloading. 

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frontloading  campaign  to  retailers  and  other  relevant  businesses  remains  a  necessity  for  a 
successful cash changeover. Retailers in particular should be in a position to give back change 
in euro only as from €-day, thus contributing to an immediate withdrawal of legacy cash and 
providing the public with meaningful quantities of euro banknotes and coins.  

The first-wave experience shows that important benefits can be gained from sub-frontloading 
the  general  public  as  well.  It  alleviates  the  pressure  on  retailers  and  banks  during  the  early 
days of the cash changeover, and thus allows for keeping the period of dual circulation short. 
It  is  moreover  well  received  by  the  general  public,  whose  interest  and  curiosity  in  the  euro 
coins  with  the  country's  national  side  is  stimulated.  Citizens  generally  feel  more  closely 
associated with their new currency.  

Some  sub-frontloading  to  the  general  public  of  low-denomination  banknotes  could  also  be 
envisaged for the same reasons. In any event, consumers should be strongly discouraged from 
using their euro cash for payment purposes before €-day. Sub-frontloading the general public 
only shortly, e.g. 10 to 14 days, before €-day, should also limit the risk of an early circulation 
of sub-frontloaded cash.  

It should be noted that suitable frontloading and sub-frontloading arrangements are envisaged 
in most countries. The frontloading period ranges from three months (in Lithuania, but only 
for  coins)  to  one  month  before  €-day  (e.g.  in  Latvia).  However,  sub-frontloading  to  the 
general  public  is  usually  not  foreseen  (apart  from  the  coin  starter  kits  to  be  distributed  in 
Slovenia). However, in Estonia, banks will offer to change kroons into euro banknotes at the 
conversion rate and without a service fee at least one month prior to €-day.  

2.2.4.  Preparations affecting enterprises in general 

Dual  displays  of  prices  and  other  monetary  amounts,  i.e.  the  simultaneous  display  of  an 
amount in the national currency unit and in the euro unit, have demonstrated their usefulness 
in  facilitating  the  introduction  of  the  euro.  They  notably  assist  consumers  in  their  mental 
changeover process and, in addition, allow them to monitor possible price changes before and 
after the introduction of the euro. Dual displays are useful not only in shops (price displays), 
but also on bank account statements, pay slips, invoices, in catalogues etc. 

While  dual  displays  were  voluntary  in  most  first-wave  countries  (only  Greece,  Austria  and 
Portugal imposed dual displays by law), they were widely applied in practice. At present, six 
countries  plan  to  implement  (or  already  apply  in  the  case  of  Slovenia)  mandatory  dual 
displays required by national law. While the modalities differ from country to country, such 
dual  displays  usually  not  only  cover  prices  in  shops  and  retail  stores,  but  also  financial 
amounts  displayed on invoices, financial statements and  related  items. The  total duration of 
this obligation (both before and after €-day) varies considerably from one country to another, 
ranging from 8 months in Lithuania to 18 months in Slovakia.  

At  the  same  time,  they  should  be  applied  according  to  rigorous  standards,  as  they  might 
otherwise  become  counterproductive  or  confusing.  In  particular,  only  the  conversion  rate 
should be used and the rounding rules should be strictly adhered to. Dual displays should be 
unambiguous, easily identifiable and clearly legible10. The implementation of this pattern will 

10 

See also Commission Recommendation of 23 April 1998 concerning dual display of prices and other 
monetary amounts (OJ L 130, 1.5.1998, p. 26). 

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depend on the nature of the retail business, on the type of product being sold, on the technical 
implications and on the cost of modifying existing price and financial display systems. 

It follows from the requirement of using the conversion rate that an obligation under national 
law  to  provide  for  dual  displays  of  prices  should  preferably  only  start  after  the  irrevocable 
conversion rate has been fixed by the Council according to Article 123 (5) EC. Starting dual 
displays  before  this  time  is  problematic  since  this  not  only  prejudges  the  Council's  future 
decision  on  the  lifting  of  the  Member  State's  derogation,  but  also  the  actual  the  conversion 
rate.  Using  a  proxy  rate  differing  from  the  irrevocably  fixed  conversion  rate  is 
counterproductive as doubts and confusion may arise in consumers' minds.  

Once  the  conversion  rate  has  been  fixed,  the  dual  display  of  prices  should  start  as  soon  as 
possible  in  order  to  start  familiarising  consumers  with  the  new  currency.  It  should  ideally 
continue for a period of six to twelve months after €-day, after which it should be ended so as 
not to become counterproductive by delaying the mental changeover. Ideally, the end of the 
dual display period should thus be programmed and announced in advance. 

2.2.5.  Need for agreements between retailers and consumers on stable prices 

The fear of possible price increases or abuses constitutes one of the main reasons underlying 
the lack of enthusiasm or even the apprehension in some of the new Member States towards 
the  introduction  of  the  euro.  Even  if  statistical  data  clearly  demonstrate  that  the  impact  on 
prices  was  marginal  in  the  first-wave  countries11,  public  opinion  in  many  countries  is  still 
holding  the  opposite  view  and  a  clear  gap  exists  between  perception  and  reality.  Besides 
explaining  this  situation  to  their  citizens,  the  public  authorities  in  the  Member  States 
preparing  for  the  adoption  of  the  euro  should  definitely  take  all  the  necessary  steps  to 
strengthen  consumers'  confidence.  For  example,  several  countries  have  already  announced 
that they will actively monitor prices during the changeover and make the results public.  

The conclusion of formal agreements between retailers and consumers on the respect of price 
stability  in  the  course  of  the  changeover  to  the  euro,  e.g.  in  the  form  of  codes  of  conduct, 
constitutes  an  essential  requirement  in  this  respect.  They  should  be  negotiated  either  at 
national  or  sectoral  level  and  relevant  consumer  associations  should  be  involved.  Such 
agreements  proved  extremely  useful  during  the  first-wave  changeover.  For  example, 
representatives  of  retailers  and  enterprises  agreed  at  EU  level  in  April  2001  on  rules  of 
conduct during the changeover period. The retailers committed themselves to strictly comply 
with the conversion and rounding rules in all their dual displays and they undertook not to use 
the changeover for hidden price increases. In the context of the first-wave changeover several 
such agreements have also been concluded at national level. It should be noted that Latvia is 
currently  planning  a  "fair  trader"  campaign  in  the  framework  of  several  measures  to  ensure 
fair conversion of prices as well as accurate rounding and display of prices in euro. Lithuanian 
business  organisations  will  be  encouraged  to  adopt  the  Code  of  Good  Business  Practice, 
whereby  they  undertake  not  to  profit  from  the adoption  of  the  euro  by  increasing  prices.  In 
Slovakia a voluntary ethical code is under preparation as part of other consumer-confidence 
building measures.  

11 

According to Eurostat (June 2003) the total impact is estimated to fall within the range of 0.09% to 
0.28%, http://epp.eurostat.cec.eu.int/cache/ITY_PUBLIC/2-18062003-AP/EN/2-18062003-AP-
EN.HTML. 

EN 

10 

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2.2.6.  Public administrations 

The  main  part  of  the  public  sector  preparations  consists  of  two  elements:  firstly,  the 
implementation of the necessary steps for the adoption of legislation on the introduction of the 
euro, and secondly the amendment of existing legislation with a view to the single currency. 
Cyprus,  Estonia,  Latvia,  Lithuania,  Malta  and  Slovakia  are  currently  in  the  process  of 
preparing  respective  draft  legislative  provisions.  When  converting  monetary  amounts  in 
existing  legal  provisions,  for  example  in  tax  provisions,  social  security  laws,  provisions  on 
administrative fines, levies and grants, it is good practice to adapt the amount in euro to the 
benefit of the citizen, if a smoothing is deemed necessary. This will contribute to avoid that 
the changeover has an impact on inflation and set a good example to the private sector with a 
view to ensure stable prices. 

The switchover of the public administrations' accounting and IT systems to the euro needs to 
be prepared carefully. Most countries have prepared timetables in order to monitor progress of 
the  conversion  of  their  critical  systems.  Alike  enterprises,  the  public  administration  should 
provide  dual  displays  of  prices  and  other  monetary  amounts,  for  example  on  civil  servants' 
pay slips, on invoice and notices of public enterprises, in the field of social security payments 
etc.  

All  Member  States  concerned  should  ensure  that  the  necessary  budgetary  and  human 
resources are allocated for the planning and the implementation of the changeover to the euro, 
including for communication activities.  

The process for the selection of the design for the national sides of the future euro coins has 
been  completed  in  Estonia,  Lithuania  and  Slovenia  already  in  2005,  and  Slovakia  has  now 
also finalised the selection of the designs (see Annex 4).  

While the changeover is the responsibility of the individual Member States, the exchange of 
information and experience considerably helps Member States in their preparations. For this 
purpose the Commission has established a public administrations network  which provides a 
forum for the national officials in charge of the changeover in their respective countries. This 
network also builds on the experience gathered during the first-wave changeover. 

2.2.7.  Communication activities  

Estonia,  Lithuania  and  Slovenia  adopted  their  euro  communication  strategies  in  2005  and 
signed  Partnership  Agreements  with  the  Commission  on  8  November  2005.  Their 
communication  campaigns  have  started  afterwards,  with  activities  such  as  dedicated  euro 
websites,  publications,  visual  identities,  free  phone  lines,  etc.  Cyprus  and  Malta  completed 
their communication strategies in April 2006 and concluded Partnership Agreements with the 
Commission  on  5  May  2006.  Latvia  and  Slovakia  produced  first  draft  communication 
strategies.  Poland,  the  Czech  Republic  and  Hungary  have  not  yet  started  planning  any 
information and communication activities. 

In  the  framework  of  these  partnerships,  the  Commission  supports  a  variety  of  activities 
developed  by  the  national  authorities,  such  as  publications,  media  campaigns,  promotional 
material,  conferences  and  seminars,  opinion  polls,  etc.  National  communication  campaigns 
should start well before the introduction of the euro and continue a few months after the end 
of the dual circulation period. Next to the partnerships, the Commission continues to support 
twinning programmes in the framework of which euro-area Member States share experience 

EN 

11 

   EN 

 
with Member States preparing themselves to adopt the euro. Seven separate twinning projects 
between recently acceded Member States and euro area countries are currently under way.  

Various public events were organised, such as conferences (e.g. Ljubljana on 17 March 2006) 
and  exhibitions  on  the  euro  coins'  genesis  (Lithuania  and  Austria);  similar  exhibitions  in 
Slovenia, Latvia and Cyprus are to follow later in the year. Seminars for journalists were held 
in Brussels and Frankfurt and in the capitals of Slovenia, Estonia and Lithuania. 

2.2.8.  Conclusion 

In general, the countries aspiring to adopt the euro in 2008 need to step up their preparations 
urgently,  in  particular  Cyprus,  which  has  not  yet  officially  adopted  its  national  changeover 
plan, and Malta, which has done so only very recently. Moreover, most national changeover 
plans  should  be  strengthened  in  several  respects.  In  particular,  agreements  should  be 
concluded  at  an  early  stage  between  retailers  and  consumers  in  order  to  avoid  price  rises 
during the changeover. Such codes of conduct should notably provide for fair pricing and dual 
display.  With  respect  to  the  latter,  all  dual  displays  should  strictly  comply  with  certain 
standards  (in  particular  use  of  the  conversion  rate;  unambiguous,  easily  identifiable  and 
clearly legible display).  

3. 

STATE OF PUBLIC OPINION IN THE RECENTLY ACCEDED MEMBER STATES 

The  results  of  the  Eurobarometer  survey  on  the  public  opinion  in  the  recently  acceded 
Member  States  conducted  in  April  200612  show  a  relative  improvement  of  the  public's 
perception of the euro. At the same time they confirm that most citizens still feel ill-informed 
about the euro, which is furthermore confirmed by the fact that almost half of the citizens in 
the  new  Member  States  fear  that  the  euro  will  increase  inflation  in  their  country.13  The 
number of respondents fearing price increases during the changeover also remains high. Table 
3  provides  an  overview  on  the  development  of  public  opinion  on  the  euro  in  the  countries 
concerned  since  the  first  Eurobarometer  opinion  poll  in  September  2004.  Annex  5  presents 
the main results of the latest opinion poll. 

Average  share  of  respondents  in  the 
recently acceded Member States … 

Eurobarometer 
April 2006 

Eurobarometer 
September 2005 

Eurobarometer 
September 2004 

Table 3 

…  expecting  positive  consequences  of  the 
introduction of the euro for their country 

… who are personally happy that the euro 
will/could replace the national currency 

… who feel well informed about the euro  

…  who  think  that  the  introduction  of  the 
euro will increase inflation 

…  who  are  afraid  of  abuses  on  prices 
during the changeover 

52% 

48% 

37% 

46% 

74% 

38% 

36% 

32% 

48% 

75% 

44% 

42% 

34% 

48% 

71% 

12 
13 

http://ec.europa.eu/public_opinion/flash/fl183_en.pdf. 
This fear is contradicted by statistical data on annual inflation rates in the euro area, which have never 
exceeded 2.4% since the introduction of the euro in 1999. 

EN 

12 

   EN 

 
 
                                                 
ANNEX 1 - Preparations at Community level 

1. Community legal framework 

Having  regard  to  the  Commission's  proposal14  for  amending  Council  Regulation  (EC)  No 
974/98  on  the  introduction  of  the  euro15,  the  Council  has  adopted  Regulation  (EC)  No 
2169/2005 on 21 December 2005.16 The amended Regulation now includes the rules for the 
introduction and the use of the euro in Member States adopting the euro after 2006.  

Building  on  the  provisions  governing  the  initial  establishment  of  the  euro  area,  the  revised 
rules allow for two new changeover scenarios in addition to the transitional period scenario17 
applicable for the first-wave euro-area Member States: Member States can now also opt for a 
“big bang” scenario or a “big bang” scenario combined with a  “phasing-out” period. Under 
the  "big  bang"  scenario  the  introduction  of  the euro  as  the  currency  and  the  introduction  of 
euro banknotes and coins coincide. This scenario allows for a more expeditious changeover to 
the euro now that euro banknotes and coins are widely available. Yet, this approach imposes 
rigorous timing requirements which might not in all cases be met by the economic actors. The 
“big bang” scenario combined with a “phasing-out” period thus offers a more gradual phasing 
out of the national currency by providing some scope for continuing to refer during a limited 
period to the national currency units in newly created legal instruments.18 

In addition, the amended Regulation introduces binding rules on the exchange free of charge 
of national banknotes and coins during the changeover period by credit institutions in Member 
States which will adopt the euro. The rules for the adoption of the euro by the first-wave euro-
area  Member  States  and  Greece  did  not  contain  a  comparable  obligation,  although  such 
practice was recommended by the Commission.19 

2. Euro banknotes and coins 

Euro-area entrants can start producing euro banknotes and coins as soon as the Council lifts 
the  Member  State’s  derogation.  However,  as  far  as  euro  banknotes  are  concerned,  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. 

Regarding  the  preparations  for  the  start  of  the  coin  production  by  future  euro  area  entrants, 
meaningful progress has been made since November 2005. While a future euro area Member 
States  may  only  start  producing  euro coins once its derogation has been lifted, a number of 
preparatory  tasks  –  including  the  production  of  limited  quantities  of  test  coins  –  may  be 

14 
15 

16 

17 

18 

19 

COM(2005) 357. 
OJ L 139, 11.5.1998, p. 1. This Regulation was amended in order to allow Greece to join the euro area 
in 2001 by Regulation (EC) No 2596/2000 (OJ L 300, 29.11.2000, p. 2). 
Council Regulation (EC) No 2169/2005 of 21 December 2005 amending Regulation (EC) No 974/98 on 
the introduction of the euro (OJ L 346, 29.12.2005, p. 1). 
The transitional period is a period of three years at most beginning on the euro adoption date and ending 
on  the  date  on  which  euro  banknotes  and  coins  acquire  the  status  of  legal  tender  in  a  given  Member 
State.  
For further details see Torsten Schäfer, Occasional Paper "The Legal Framework for the Enlargement of 
the Euro Area", http://www.ec.europa.eu/economy_finance/publications/occasionalpapers_en.htm. 
Cf.  Commission  Recommendation  of  11  October  2000  on  measures  to  facilitate  the  preparation  of 
economic operators for the changeover to the euro (OJ C 303, 24.10.2000, p. 6). 

EN 

13 

   EN 

 
                                                 
carried  out  before  this  time.  In  the  framework  of  their  preparations  for  future  euro  coin 
production, Estonia, Lithuania and Slovenia have signed Memoranda of Understanding with 
the Member States of the euro area and the European Commission in January and February 
2006, respectively. The Commission subsequently transferred the required copyrights, and the 
national mints transferred the available minting tools for the common sides of the euro coins, 
to  the  three  Member  States  concerned.  Cyprus  has  recently  requested  the  signing  of  such  a 
Memorandum of Understanding.  

On 7 June 2005, at the initiative of the Commission, the Ecofin Council had decided that the 
common sides of the 1- and 2-euro and the 10-, 20- and 50-cent coins, which currently depict 
the EU before it was enlarged from 15 to 25 Member States, should be modified in order to 
represent Europe as a whole. Following this decision, the necessary design and technical work 
is currently being finalised so that new euro area entrants can strike and issue euro coins with 
the new common side already from 2007. 

New common sides of the 1- and 2-euro coins and of the 10-, 20- and 50-cent coins 

EN 

14 

   EN 

 
 
 
 
3. Communication activities  

The European Commission continued to implement its communication activities on the euro 
and  EMU  in  close  cooperation  with  Member  States  and  other  Community  institutions. 
Helping  the  new  Member  States  intending  to  introduce  the  euro  in  2007  or  2008  in  their 
communication campaigns still constitutes the main priority.  

The Commission also developed during the last 6 months a number of activities linked to the 
enlargement  of  the  euro  area,  such  as  opinion  polls,  surveys  and  studies.20  Moreover, 
brochures  and  posters  for  the  general  public21,  a  website  dedicated  to  the  euro22  and 
promotional material were made available.  

To  ensure  an  easy  recognition  of  its  information  products,  a  visual  identity  has  been 
developed for all communication products and activities on the euro and EMU financed under 
the  PRINCE  programme  and  developed  by  the  Commission  or  a  Member  State  under  a 
partnership agreement with the Commission. 

20 
21 
22 

http://europa.eu.int/comm/public_opinion/index_en.htm. 
http://europa.eu.int/comm/economy_finance/publications/general/general_en.htm. 
http://europa.eu.int/comm/economy_finance/euro/our_currency_en.htm. 

EN 

15 

   EN 

 
 
 
                                                 
ANNEX 2 – List of relevant changeover characteristics 

The table below provides an overview of certain relevant changeover characteristics in each 
Member  State  concerned.  It  is  solely  based  on  officially  approved  and  publicly  available 
information and does therefore not reflect preparations which are still under way. It should be 
noted that the state and degree of progress of preparations should be assessed in the context of 
the target date, as preparations tend to step up with the proximity of the changeover.  

X: Officially approved/ established and published 
(in particular in the national changeover plan) 

CZ  EE  CY  LV  LT  HU  MT  PL 

SI 

SK 

SE 

the  general 

Changeover plan  
National target date 
National Changeover Plan 
National Changeover Committee  
Cash Changeover details 
Type of scenario  
Length of dual circulation period 
Exchange at commercial banks after 
dual circulation period 
Exchange  at  central  bank  after  dual 
circulation period 
Frontloading of financial institutions 
Sub-frontloading of retailers  
Sub-frontloading  of 
public 
Deferred debiting 
Piggy coin operations24 
Arrangements  for  extended  bank 
opening hours around €-day 
ATMs dispensing euro only as from 
€-day 
Denominations  of  notes  in  ATMs 
specified 
Transport and storage for euro cash 
Transport  and  storage  for  legacy 
cash 
Change  only  given 
retailers as from €-day 
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 

in  euro  by 

X 

X 

X 
X 
X 

X 
X 
X 

X 

X 
X 

[X] 
X 
X 

[X]  X 
X 
X 

X 
X 
X 

X 

X 
X 

X 
X 
X 

X 

X 
X 

X 
X 

X 

X 

X 

X 

X 

X 

X 
X 

X 

X 

X 
X 
X 

X 

X 

X 

X 
X 
X 

X 
X 
X 

X 

X 
X 
X23 

X 

X 

X 

X 
X 

X 

X 

X 

X 
X 
X 

X 
X 
X 

X 

X 
X 

X 

X 

X 

X 
X 
X 

X 
X 
X 

X 

X 
X 

X 

X 

X 

X 
X 
X 

X 

23 
24 

Exchange at banks at the conversion rate without service fees. 
This term refers to campaigns encouraging citizens to deposit hoarded cash with banks well in advance 
of the changeover to the euro.  

EN 

16 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
CZ  EE  CY  LV  LT  HU  MT  PL 

SI 

SK 

SE 

Further changeover details 
Necessary  adaptations  of  national 
law identified 
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 or fair 
pricing  
Price monitoring projects 
Training for cash handlers 
Accounting adaptations  
Share capital conversion 
Rounding rules in legislation 
Evaluation  of  the  costs  involved  for 
the public sector  
Twinning agreement  
Communication activities 
Communication strategy  
Partnership agreement 

X 

X 
X 
X 

X 

X 
X 
X 
X 
X 

X 
X 

X 

X 
X 

X 

X 
X 

X 

X 
X 
X 

X 

X 

X 
X 

X 
X 

X 

X 

X 
X 

X 

X 
X 

X 

X 

X 
X 

X 

X 

X 

X 
X 
X 

X 

X 
X 
X 
X 
X 

X 

X 

X 

X 
X 
X 

X 

X 

X 
X 

EN 

17 

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ANNEX 3 – Table: State of practical preparations (June 2006) 

Czech Republic 

Estonia 

Changeover plan 

National target date for 
euro adoption 

1 January 2010 (*) 

1 January 2008 

National  co-ordinating 
institution 

(*) Preliminary date

On  23  November  2005 
the  Deputy 
Minister of Finance has been appointed as 
the  National  Coordinator  of  the  Euro 
Introduction. 
The National Co-ordination Group on Euro 
Introduction  was  established  and  had  its 
first meeting on 20 February 2006. 
Consequently  six  Working  Groups  were 
established for particular areas of the euro 
preparatory activities. 

The  National  Changeover  Committee,  chaired  by  the 
Secretary  General  of  the  Ministry  of  Finance,  was  created 
on 27 January 2005. 

(Approved) 
Changeover Plan  

National 

The  Czech  Republic’s  Euro  Accession 
Strategy was approved by the Government 
in October 2003: 

First  draft  of  euro  adoption  plan  was  approved  by  the 
government on 1 September 2005: 

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

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

The 
for 
Institutional  Arrangements 
Introduction  of  the  Euro  in  the  Czech 
Republic  were  approved  by  Government 
on 23 November 2005. 

The  National  Changeover  Plan  will  be 
submitted to the government by the end of 
December 2006. 

4th version of Estonia's National Changeover Plan, approved 
by the National Changeover Committee on 18 May 2006 

http://euro.eesti.ee/EU/Prod/Euroveeb/Main_Page/left_men
u_content4748/Changeover_to_the_euro_in_Estonia/europl
aan_en.jsp 

Changeover details 

Type of scenario 

Under  consideration  –  proposal  to  be 
submitted to the government by the end of 
August 2006. 

"Big bang" 

Dual circulation period  

Exchange  of  national 
banknotes and coins 

for 

Campaign 
rapid 
withdrawal  of  national 
banknotes and coins 

Frontloading  and  sub-
frontloading 

2 weeks 

Banknotes  and  coins:  Commercial  banks  at  least  6 months 
after  €-day  free  of  charge,  some  branches  12  months. 
Central Bank indefinitely, free of charge. 

Campaign  for  collection  of  coins  before  €-day  planned; 
credit  institutions  are  recommended  to  launch  early  cash 
deposit campaigns. 

Frontloading  2  months  before  €-day;  sub-frontloading  by 
credit  institutions  to  major  clients  1  month  before  €-day 
(precondition:  no  distribution  to  general  public  before  €-
day). 

Banks will offer to change kroons into euro banknotes at the 
conversion rate and without a service fee at least one month 
prior to €-day. 

ATMs issuing euro only 

All ATMs will dispense euro only within 48h as of €-day. 

EN 

18 

   EN 

 
 
 
 
 
 
 
 
Change in euro only 

Dual display of prices 

Consumer 
confidence 
building  measures  (e.g. 
agreements 
with 
retailers) 

Adaptation  of  national 
law 

In general, change will be given in euro, but the possibility 
of giving change in kroons remains for the dual circulation 
period 

Compulsory: 6 months before and after €-day. 

Monitoring  of  the  prices  of  certain  frequently  consumed 
goods and services under the supervision of the Ministry of 
Economic Affairs and Communications. 

Methodology  and  legislative  analysis  for 
national  law  adaptation  is  being  prepared 
in  the  framework  of  the  Working  Group 
for  Legislation  of 
the  National  Co-
ordination Group on the Euro Introduction.

Act  on  the  Introduction  of  the  Euro  ("umbrella  law")  and 
amendments to the Business Code are expected to be passed 
to the parliament by September 2006.  

Euro banknotes and coins 

Design  of  the  national 
side 

Nr  of  different  coin 
designs 

Competition under consideration. 

Design selected and published in December 2004. 

1 design. 

Coin supplier 

Not decided yet. 

Coins to be minted abroad; following an international tender 
euro coins will be minted by the Mint of Finland. 

The current coin supplier, the Czech Mint, 
is  an  independent  division  of  Jablonex 
Group  a.s.;  the  Czech  Mint  is  connected 
with 
the  National  Bank  by  business 
contracts based on tender procedures. 

Estimation  on  the  need 
for banknotes and coins 

230  million  banknotes  and  950  million 
coins. 

150-200 million coins. 

Communication activities  

Communication 
strategy 

Under preparation within the framework of 
the Working Group for Communication. 

Endorsed  by  the  National  Changeover  Committee  on  21 
June 2005 and updated on 18 May 2006. 

Addresses  of  websites 
on  euro  changeover, 
activation 
date: 
Government/Ministry 
of  Finance;  Central 
Bank 

Partnership agreement 

Other issues 

ERM II entry 

Twinning agreement 

www.euro.eesti.ee, launched in January 2006. 

Signed 8 November 2005. 

28 June 2004 

EN 

19 

   EN 

 
 
 
 
 
 
 
 
 
 
STATE OF PRACTICAL PREPARATIONS (June 2006) 

Cyprus 

Latvia 

Changeover plan  

National target date for 
euro adoption 

1 January 2008 

1 January 2008 (under revision) 

National  co-ordinating 
institution 

Joint  coordination  by  the  Minister  of  Finance 
and the Central Bank of Cyprus, established on 
29 December 2004. 

The  Steering  Committee  for  the  preparation  and 
coordination of the euro changeover was established on 
18 July 2005. 

(Approved) 
Changeover Plan  

National 

The  National  Changeover  Plan  has  been 
approved  by  the  National  Advisory  Committee 
on  29  March  2006.  Still to  be  approved  by the 
Council of Ministers.  

The Cabinet of Ministers of the Republic of Latvia has 
approved  the  Action  Plan  for  Implementation  of  the 
Single European Currency of the on 1 November 2005, 
and the first draft of Latvia's National Euro Changeover 
Plan on 28 February 2006 (Government order No.148, 
6 March 2006). 

Changeover details 

Type of scenario 

"Big bang" envisaged 

"Big bang" 

Dual circulation period   1 month envisaged 

1 month 

Exchange  of  national 
banknotes and coins 

It  is  envisaged  that  the  Central  Bank  will 
exchange banknotes for 10 years and coins for 2 
years.  Banks  will  exchange  national  banknotes 
and  coins  for  euro,  free  of  charge,  at  least  for 
the  amount  of  £  1.000  for  banknotes  and  £  50 
for coins, for a period of 6 months after €-day. 

for 

rapid 
Campaign 
withdrawal  of  national 
banknotes and coins 

Campaign  envisaged  around  September  2007 
encouraging  people  to  use  hoarded  cash  or 
deposit it with banks. 

Commercial banks, currency exchange offices and post 
offices  for  6  months  after  €-day  free  of  charge;  the 
Bank of Latvia will exchange without time limit free of 
charge. 

Not  envisaged  due  to  the  high  nominal  value  of  coins 
in  Latvia  and 
in  day-to-day 
payments. 

intensive  use 

their 

Frontloading  and  sub-
frontloading 

Envisaged from November to December 2007.  Frontloading to banks starts on 1 December 2007, sub-
frontloading on 15 December 2007 (precondition: euro 
banknotes  and  coins  may  not  be  publicly  circulated 
before €-day). 

ATMs issuing euro only  Arrangements  with  banks  on  this  issue  are 
currently being worked out with the aim to have 
all ATMs dispensing small denominations (10€ 
and 20€) from €-day 

Change in euro only 

It  is  planned  that  the  retail  sector  will  be 
frontloaded with euro coins so as to give change 
in  euro  only  as  from  €-day,  to  the  extent 
possible. 

As  of  1  January  2008  ATMs  will  dispense  euro 
banknotes only. 

After the end of the dual circulation period.  

Dual display of prices 

Starting  one  month  after  the  abrogation  of  the 
derogation,  until  six  months  after  the  adoption 
of the euro (preliminary period). 

Compulsory three months before and one year after €-
day. 

confidence 
Consumer 
building  measures  (e.g. 
with 
agreements 

Monitoring  of  price  developments  in  retail  trade, 
verification procedure on the accuracy of price displays 

EN 

20 

   EN 

 
 
 
 
 
retailers) 

and "fair trader" campaign envisaged. 

Adaptation  of  national 
law 

A  draft  "umbrella  law"  for  the  adoption  of  the 
euro in Cyprus is currently being prepared; the 
law is planned to be adopted at the end of 2006. 

"Umbrella law" on basic provisions for the introduction 
of  the  euro  in  Latvia  is  currently  being  prepared.  All 
ministries  are  involved  in  the  review  of  national 
legislation  to  identify  the  necessary  amendments  and 
required new legislative acts. 

Euro banknotes and coins 

Design  of  the  national 
side 

Will  be  submitted  to  the  Council  of  Ministers 
for final approval shortly. 

In process. 

Nr  of  different  coin 
designs 

3 designs. 

4 designs. 

Coin supplier 

Coins to be minted abroad at approved national 
and/or private mints, through tender procedures.

Coins  to  be  minted  abroad.  Tender  for  production  of 
coins will be organised after design finalisation. 

Estimation  on  the  need 
for banknotes and coins 

79  million  banknotes  (value  €  1730m),  545 
million coins (value € 147,4m). 

87 million banknotes and 300 million coins. 

Communication activities  

Communication 
strategy 

A  Comprehensive  Strategic  Communication 
Plan  for  the  Adoption  of  the  Euro  in  the 
Republic of Cyprus, approved by the Council of 
Ministers on 5 April 2006. 

"Communication  strategy  for  the  euro  changeover  in 
Latvia"  approved  by 
the  Steering  Committee  of 
Latvia's euro implementation project on 12 April 2006. 

Addresses  of  websites 
on  euro  changeover, 
activation date: 

www.euro.cy, activated on 31 May 2006 as part 
of  the  communication  campaign  official  kick-
off event. 

Ministry 
Finance/Government;  

of 

Central Bank 

Planned euro changeover website:www.eiro.lv. 

Updated information on the euro changeover process is 
available  on  the  website  of  the  Ministry  of  Finance: 
http://www.fm.gov.lv/page.php?id=105. 

Partnership agreement  Signed on 5 May 2006. 

Planned to be signed in 2006. 

Other issues 

ERM II entry 

2 May 2005 

2 May 2005 

Twinning agreement 

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

EN 

21 

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Changeover plan  

National target date for 
euro adoption 

National  co-ordinating 
institution 

(Approved) 
Changeover Plan  

National 

STATE OF PRACTICAL PREPARATIONS (June 2006) 

Lithuania 

Hungary 

1 January 2007 (under revision) 

 1 January 2010 

for 

the 
Commission 
Adoption  of  the  Euro  in  Lithuania,  established 
on 30 May 2005. 

the  Coordination  of 

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

The  first  version  of  the  National  Changeover 
Plan  was  approved  by  the  government  on  29 
September  2005.  The  draft  second  version  of 
the  National  Changeover  Plan,  dated  April 
2006, was published:  

http://www.finmin.lt/notes_images/web/stotis_i
nf.nsf/0/80C39F584F795D97C22570AD0054C
826/$File/LT%20Changeover%20plan_en.pdf 

Changeover details 

Type of scenario 

"Big bang". 

"Big bang" with possible phasing out features.  

Dual circulation period   15 days. 

1 month. 

Exchange  of  national 
banknotes and coins  

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

Credit institutions and post offices: at least during dual 
circulation period.  

Magyar  Nemzeti  Bank:  in  case  of  banknotes  for  20 
years  and  in  case  of  coins  for  5 years  after  the end  of 
dual circulation period. 

for 

rapid 
Campaign 
withdrawal  of  national 
banknotes and coins 

Frontloading  and  sub-
frontloading 

Consumers  will  be  encouraged  to  deposit  cash 
with banks as early as possible. 

Frontloading  of  euro  banknotes  to  commercial 
banks one month before €-day at the latest and 
of  euro  coins  three  months  before  €-day  at  the 
latest.  Sub-frontloading  of  euro  banknotes  and 
coins to retailers in December 2006. 

ATMs issuing euro only  As  from  €-day  ATMs  will  dispense  euro 

banknotes. 

Change in euro only 

Recommendation to give change in euro only. 

Dual display of prices 

Compulsory:  120  calendar  days  before  €-day 
until  120  days 
after  €-day;  voluntary: 
recommendation to use dual display as early as 
possible  after  the  adoption  of  the  conversion 
rate. 

Consumer 
confidence 
building  measures  (e.g. 
with 
agreements 
retailers) 

Business  organisations  will  be  encouraged  to 
adopt  a  Code  of  Good  Business  Practice  (on 
correct  conversion,  no  price  increases  etc.); 
themselves  will  be 
enterprises  committing 

EN 

22 

   EN 

 
 
 
 
 
 
 
 
 
 
Adaptation  of  national 
law 

authorised to use the special logo of the Code. 

Draft Law on the Adoption of the Euro has been 
prepared  (rules  on  conversion  and  exchange  of 
the  litas  to  the  euro,  withdrawal  of  litas  from 
circulation,  publication  of  the  images  of  notes 
and  coins,  redenomination  of  securities,  dual 
display of prices etc.). The law will be adopted 
after  decision  on 
the 
derogation.  

the  abrogation  of 

All  existing  legal  acts  that  need  to  be  adapted 
with a view to the euro have been identified by 
December  2005.  The  necessary  amendments 
will be adopted by 1 December 2006. This does 
not include replacing references to the litas with 
references to the euro, which will be carried out 
after the adoption of the euro in Lithuania. 

Euro banknotes and coins 

Design  of  the  national 
side 

Approved. 

Nr  of  different  coin 
designs 

3 designs. 

Coin supplier 

Lithuanian Mint. 

National Mint. 

Estimation  on  the  need 
for banknotes and coins 

Estimation  of  118  million  banknotes  and  290 
million  coins  has  been  made  on  the  condition 
that  the  euro  will  be  introduced  on  1  January 
2007. 

0,5 billion banknotes and 1 billion coins. 

Communication activities  

Communication 
strategy 

Addresses of websites 
on euro changeover, 
activation date: 
Ministry of 
Finance/Government; 
Central Bank 

information 

communication 
"Public 
strategy  on 
the  euro  of 
the  adoption  of 
Lithuania" was approved by the government on 
29 September 2005. 

and 

Websites  of  the  Bank  of  Lithuania  (www.lb.lt) 
and of the Ministry of Finance (www.finmin.lt). 
National  website  planned  as  from  EU  Council 
decision on the abrogation of the derogation. 

Partnership agreement  Signed on 8 November 2005. 

Other issues 

ERM II entry 

28 June 2004 

Twinning agreement 

Between  NL  –  SI  –  LT:  communication  and 
information strategy;  

Between  AU  –  HU:  communication  and  information 
strategy (finalised). 

between BE – LT on tax-related question;  

between BE – LT on departmental management 
related to the changeover.  

EN 

23 

   EN 

 
 
 
 
 
 
 
 
 
STATE OF PRACTICAL PREPARATIONS (June 2006) 

Malta 

Poland 

Changeover plan  

National target date for 
euro adoption 

1 January 2008 

National  co-ordinating 
institution 

Two Committees appointed on 13 June 2005: a 
Steering  Committee  and  a  National  Euro 
Changeover Committee (NECC) reporting to it. 

Inter-institutional working group Ministry of Finance – 
national central bank. 

(Approved) 
Changeover Plan  

National 

The  Second  Updated  Master  Planfor  the  Euro 
Changeover  in  Malta  was  adopted  by  the 
government 
June 
2006http://mfin.gov.mt/image.aspx?site=NECC
&ref=Master%20Plan%202 

on 

12 

. 

Changeover details 

Type of scenario 

"Big bang" with a phasing out period. 

Dual circulation period   January 2008. 

Exchange  of  national 
banknotes and coins 

for 

Campaign 
rapid 
withdrawal  of  national 
banknotes and coins 

Frontloading  and  sub-
frontloading 

It is planned that, as from 2 January 2008, credit 
institutions will start accepting the exchange of 
Maltese  lira  notes  into  euro  notes  and  coins, 
free  of  charge  for  their  clients  and  up  to  a 
'household  amount'  of  Lm  250  for  non-bank 
clients.  In  both  cases  free  exchange  is  planned 
to be provided until the end of March 2008. The 
Central  Bank  of  Malta  will  continue 
to 
exchange  all  Maltese  lira  coins  and  notes, 
subject  to  anti-money  laundering  regulations, 
for  two  years  and  ten  years  respectively  after 
the end of the dual circulation period. 

A  de-hoarding  campaign  will  be  initiated  at 
national level as from September 2006. 

Frontloading  to  banks  is  planned  to  start  from 
late  October/early  November  2007  and  sub-
frontloading  by credit  institutions  is  planned  to 
start from 17th December 2007. 

ATMs issuing euro only  Planned as from 1 January 2008. 

Change in euro only 

Planned as from 1 January 2008. 

Dual display of prices 

Voluntary  dual  display  of  prices  is  planned  to 
start  between  January  2007  and June  2007  and 
to end on 30 June 2008. 

Consumer 
confidence 
building  measures  (e.g. 
agreements 
with 
retailers) 

establishment  of 

Presently  in  consultation  within  the  NECC  for 
the 
a  Retailers  Euro 
Changeover  Best  Practice  Initiative  (RECBPI). 
The  RECBPI  provides  for  the  conclusion  of 
formal agreements in which retailers voluntarily 
commit  themselves  towards  best  practices  that 

EN 

24 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
that  assist 

ensure price fairness, transparency and stability 
to  become 
and 
familiar  with  the  new  currency.  The  needs  of 
vulnerable persons are taken into account. 

the  consumers 

A  Euro  Observatory  on  the  basis  of  EC 
Recommendation  98/288/EC  is  in  the  process 
of being set up. 

Adaptation  of  national 
law 

The  draft  Euro  Adoption  Bill  2006  ("umbrella 
law") is currently being debated in Parliament. 

Euro banknotes and coins 

Design  of  the  national 
side 

Public  consultation  process  for  the  selection  of 
the  designs  for  the  national  side  of  the  euro 
coins  launched  on  14  January  2006;  its  initial 
phase lasted until 29 January 2006. The second 
and final phase of the process was completed by 
9 June 2006.  

Public survey. 

Nr  of  different  coin 
designs 

3 designs. 

Coin supplier 

Coins to be minted abroad by national mints. 

National Mint. 

Estimation  on  the  need 
for banknotes and coins 

Estimated 43 million euro notes. 

Between 4 and 5 billion coins. 

Estimated 108 million euro coins. 

Communication activities  

"Multi-annual 
in 
communication 
preparation for the adoption of the euro (2006-
2008)"  adopted  by  the  Steering  committee  for 
the adoption of the euro on 19 April 2006. 

strategy 

including  consumers, 

The  NECC  has  prepared  a  detailed  action  plan 
for  2006  and  2007  including  a  significant 
information  campaign  reaching  specific  target 
groups 
the  business 
community, children, the elderly and vulnerable 
groups.  It  has  recruited  a  team  of  information 
officers to assist the general public and has also 
launched  a  national  helpline  to  assist  the 
different target groups. 

http://www.euro.gov.mt 

Communication 
strategy 

Addresses of websites 
on euro changeover, 
activation date:  
Government/Ministry 
of Finance;  
Central Bank 

Partnership agreement  Signed on 5 May 2006. 

Other issues 

ERM II entry 

2 May 2005 

Twinning agreement 

Between  IE  –  MT  –  CY:  communication  and 
information strategy (finalised). 

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

EN 

25 

   EN 

 
 
 
 
 
 
 
 
 
STATE OF PRACTICAL PREPARATIONS (June 2006) 

Slovenia 

Slovakia 

Sweden 

Changeover plan 

National  target  date  for 
euro adoption 

1 January 2007 

1 January 2009 

Not yet decided. 

National 
institution 

co-ordinating 

for 
The  Coordinating  Committee 
Technical  Preparations  to  Introduce  the 
Euro was created in July 2004. 

Ministry of Finance 

(Approved) 
Changeover Plan  

National 

A  Masterplan  for  the  Euro  Changeover 
was approved in January 2005. 

The  National  Changeover  Plan  was  approved 
on 6 July 2005: 

First  update  adopted  by  the  government 
on 2 February 2006. Both documents are 
available on: 

http://www.nbs.sk/ZAKLNBS/PUBLIK/BRO
ZURY/NARPLAN.PDF (Slovak) 

http://www.bsi.si/en/publications.asp?Ma
paId=717. 

http://www.nbs.sk/ZAKLNBS/PUBLIK/BRO
ZURY/NARPLANA.PDF (English). 

Changeover details 

Type of scenario 

"Big bang". 

"Big bang". 

Dual circulation period  

1 January to 14 January 2007. 

16 days. 

Exchange 
banknotes and coins 

of 

national 

Campaign 
withdrawal 
banknotes and coins 

for 
of 

rapid 
national 

Frontloading 
frontloading 

and 

sub-

banks  will 

Commercial 
exchange 
banknotes  and  coins  free  of  charge  until 
1  March  2007;  Banka  Slovenije  will 
exchange  tolar  banknotes  without  time 
limit free of charge, and tolar coins until 
31 December 2016. 

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. 

A  campaign  of  the  banking  sector  is 
planned  for  the  rapid  withdrawal  of 
national banknotes and coins.  

Frontloading  of  coins  to  banks  as  of  1 
September  2006,  of  banknotes  as  of  11 
December  2006;  sub-frontloading  of 
coins  as  of  1  December  2006,  of 
banknotes as of 11 December 2006; coin 
starter kits for the general public as of 15 
December 2006. 

One to four months prior to €-day. 

ATMs issuing euro only  

ATMs  will  only  dispense  €  10  and  €  20 
banknotes as of €-day. 

As of €-day ATMs will issue euro only. 

Change in euro only 

Change  will  be  given  in  euro  only  as  of 
€-day. 

Change will be given in euro only. 

Dual display of prices 

Compulsory  from  1  March  2006  till  30 
June 2007. 

Compulsory:  from  one  month  after  fixing  of 
till  one  year  after  euro 
conversion  rate 
adoption. Voluntary: for further 6 months. 

Consumer 
building  measures 
agreements with retailers) 

confidence 
(e.g. 

Price  Watch  Project:  The  Consumer 
Association  of  Slovenia  is  monitoring 
price developments in the retail sector for 
specific  goods  and  services 
in  co-
operation  with  the  Statistical  Office  of 

Evolution  of prices  in  2008  and  2009  will  be 
closely  monitored; 
consumers  will  be 
informed  of  the  results;  consumers  can  raise 
complaints  to  supervisory  bodies  or  apply  to 
the  courts;  voluntary  ethical  code  is  prepared 

EN 

26 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
the Republic of Slovenia and wil publish 
the  names  of  retailers  who  increase 
prices excessively. 

with retailers and entrepreneurs. 

Adaptation of national law  The  draft  Introduction  of  the  Euro  Act 
has been sent to the ECB for consultation 
on  3  May  2006.  Amendments  to  the 
Salary  Tax  Act  have  been  adopted  in 
December  2005;  amendments 
the 
Bank  of  Slovenia  Act,  to  the  Payment 
Transactions  Act,  to  the  Misdemeanours 
Act and to the Companies Act have been 
adopted 
in  April  2006.  A  draft 
amendment  to  the  Collateralisation  Act 
has  been  submitted  to  the  parliament  in 
April 2006. 

to 

Euro banknotes and coins 

Design of the national side 

Approved. 

"Umbrella  law"  planned  to  be  adopted  by  1 
January  2008.  The  necessary  amendments  to 
existing  legislation  have  been  identified  by 
January 2006 and are envisaged to be adopted 
in 2008 at the latest. 

Final  design  of  the  national  side  for  the  euro 
coins  was  chosen  by  public  tender  followed 
by  an  opinion  poll  and  announced 
in 
December 2005. 

Nr of different coin designs  8 designs. 

Coin supplier 

Coins  to  be  minted  by  national  mints 
abroad;  the  Mint  of  Finland  has  been 
chosen as producer of euro coins. 

3 designs. 

National Mint. 

Estimation  on  the  need  for 
banknotes and coins 

94  million  banknotes  and  234  million 
coins. 

400 million coins. 

Communication activities  

Communication strategy 

Endorsed  by  Bank  of  Slovenia  on  19 
May  2005  and  by  the  government  on  2 
June 2005. 

Communication 
euro 
strategy 
introduction in the Slovak Republic is part of 
the National Changeover Plan. 

the 

on 

Addresses of websites on 
euro changeover, activation 
date: 
Government/Ministry of 
Finance;  
Central Bank 

National website on euro changeover:  

http://euro.vlada.gov.sk; 

http://www.evro.si, activated on  

http://www.euromena.sk. 

15 February 2006. 

Special  section  on  the  euro  on  the 
webpage 
of  Slovenija: 
http://www.bsi.si. 

of  Bank 

Toll-free 
(Evrophon). 

phone 

line: 

080 

2002 

Partnership agreement 

Signed on 8 November 2005 

Other issues 

ERM II entry 

28 June 2004 

28 November 2005 

Twinning agreement 

Between  NL  –  SI  –  LT:  communication 
and information strategy. 

Between  AU  –  SK:  communication  and 
information strategy; 

Between BE – SK: technical issues related to 
the changeover. 

EN 

27 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX 4 - Euro coins designs of the future national sides of Slovakia 

2-euro coins 

1-euro coin 

50-cent coin 

20-cent coin 

10-cent coin 

Copper plated coins 

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

EN 

28 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
ANNEX 5 - State of public opinion in the recently acceded Member States 

The European Commission recently commissioned a new Eurobarometer survey on the public 
opinion  in  the  recently  acceded  Member  States  concerning  citizens'  attitudes  to  and 
knowledge  on  the  introduction  of  the  euro.  Gallup  Europe  conducted  this  survey  in  April 
2006.  This  was  the  third  such  Eurobarometer  survey  after  September  2004  and  2005,  again 
polling over 10,000 citizens. 

1. The perception and support for the single currency improved 

The overall perception and support for the euro has markedly improved, even exceeding the 
more  favourable  levels  of  September  2004,  thus  probably  reflecting  the  improved  general 
climate in Europe over the last months. The consequences of the introduction of the euro for 
the  country  and  on  personal  level  are  deemed  much  more  positive:  52%  think  that  the  euro 
would be rather or very positive for the country and 46% on personal level, with the support 
being highest in Slovenia (58% and 53% respectively). In the perception of people, the overall 
environment has become more in favour of their country joining the euro area. However, the 
level of support varies widely among countries. The population in the three Baltic States are 
the least happy about the forthcoming replacement of their national currency.  

2. The knowledge about the euro remains mixed 

Respondents in the recently acceded Member States are relatively familiar with the common 
currency: most people have seen euro banknotes (80%) or euro coins (75%), although much 
less used them already (45% and 41% respectively). This level of information is essentially 
unchanged  relative  to  last  year.  As  in  the  past,  Slovenes  are  most  familiar  with  the  euro 
banknotes and coins. The usage of the euro has slightly increased but varies widely between 
countries.  However,  only  a  minority  (46%  for  banknotes  and  41%  for  coins)  is  able  to 
correctly identify whether or not the designs differ between countries.  

The knowledge among the general public about the framework conditions for euro adoption 
has  not  improved.  Only  38%  (unchanged  since  September  2005)  are  able  to  indicate  the 
correct  number  of  euro-area  Member  States.  While  all  new  Member  States  are  expected  to 
join the euro area in due time, a significant majority (69% compared with 58% in the previous 
survey) believes that their country can choose whether or not to introduce the euro. Opinions 
on the expected date of euro introduction seem to converge with a realistic assessment of the 
national target dates. 

3. Citizens want to be informed early on 

According  to  the  survey,  more  people  feel  well-informed  than  in  the  previous  survey  (37% 
relative  to  32%),  most  notably  in  Slovenia,  suggesting  that  the  communication  efforts  on 
European and national level are starting to bear fruit. However, the majority of citizens (60%) 
still consider themselves not very or not at all informed. The perceived level of information is 
disappointingly  low  in  some  countries  with  more  imminent  national  target  dates  for  euro 
introduction  such  as  Latvia,  Malta,  Estonia  and  Cyprus.  Respondents  confirmed  previous 
results that early information on the introduction of the euro is appreciated.  

As regards the source of information on the euro, the current survey confirms that people trust 
above  all  National  Central  Banks  (77%),  followed  by  the  European  Institutions  (70%).  As 
regards  the  channels,  strongest  preference  is  expressed  for  traditional  media  (TV,  papers, 

EN 

29 

   EN 

 
radio) but also internet, and banks even though the use of bank services is still relatively low 
in some of these countries. Most citizens identify practical information as the preferred topics 
for the national campaigns e.g. the conversion rate (93%) and the changeover scenario (90%). 
92% seek information on how to avoid price abuses. The current survey confirms that the dual 
display of prices (86%) and amounts on bills and invoices (76%) is judged the most essential 
tool for preparing the population for the new scale of values. 

4. People's expectations and fears regarding the adoption of the euro are subdued 

The  picture  in  this  respect  is  somewhat  mixed  and  contradictory.  Expectations  towards  the 
euro as an international currency and towards the role of Europe in the world are increasingly 
positive.  Concerns  about  the  loss  of  control  over  economic  policy  or  the  loss  of  national 
identity are lowering. A broad and increasing majority expects tangible benefits for daily life 
like for travelling and price transparency.  

Since the introduction of the euro in 1999, prices have been stable and inflation rates in the 
euro  area  did  not  exceed  2.4%  p.a.  Surprisingly,  most  citizens  in  the  new  Member  States 
(46%)  fear  that  the  introduction  of  the  euro  will  increase  inflation  in  their  country.  Albeit 
rising,  the  share  of  those  who  believe  that  the  euro  might  help  to  maintain  price  stability 
remains low at 29%. 

EN 

30 

   EN