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 - Fourth Report on the practical preparations for the future enlargement of the euro area
Date: 2006-11-10
Institutions: European Commission
Subjects: Cyprus, Economic and Monetary Union, Malta, Slovenia, euro, euro area, monetary integration, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.11.2006 
COM(2006) 671 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 

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

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Slovenia will adopt 
the euro on 
1 January 2007; 
Cyprus and Malta 
have recently adopted 
their national 
changeover plans. 

Several countries 
have recently 
postponed their target 
date for euro 
adoption. 

1. 

INTRODUCTION 

This  report  assesses  the  state  of  practical  preparations  at 
national and Community level for the future enlargement of the 
euro area. It is the fourth report on this subject. The preceding 
reports  were  adopted  in  November  2004,  November  2005  and 
June 2006.1  

The Fourth Report focuses on recent developments concerning 
practical preparations in Slovenia as this country will enter the 
euro  area  on  1 January  2007,  following  the  Council's  decision 
that  it  fulfils  the  necessary  conditions  for  the  adoption  of  the 
euro.  Furthermore,  the  report  gives  special  attention  to  the 
preparations  in  Cyprus  and  Malta,  two  countries  aiming  to 
adopt the euro on 1 January 2008. Both countries have recently 
adopted  their  national  changeover  plans.  Finally,  the  report 
examines  the  state  of  the  preparations  in  the  other  Member 
States and at Community level. 2  

This,  and  previous,  reports  on  the  practical  preparations  are 
without  prejudice  to  the  Commission's  Convergence  Reports, 
required  by  the  Treaty,  on  whether  the  Member  States  with  a 
derogation fulfil the "Maastricht" convergence criteria.3 

2. 

STATE OF PREPARATIONS AT NATIONAL LEVEL  

2.1. 

National target dates for the adoption of the euro 

Several  countries  have  altered,  or  are  in  the  process  of 
reviewing, their target dates for euro adoption because of their 
difficulties  in  fulfilling  the  convergence  criteria  as  originally 
planned.  Estonia  originally  aimed  to  adopt  the  euro  on 
1 January 2007. In April 2006 the government moved the target 
date  to  1  January  2008.  The  Estonian  government  will  assess 
the  validity  of  this  target  date  in  autumn  2006.  Lithuania 
initially also planned to adopt the euro on 1 January 2007. The 
Commission's Convergence Report of 16 May 2006 concluded, 
however, that the country did not fulfil the necessary conditions 
for  adopting  the  euro.  In  October  2006,  the  Lithuanian 

1 

2 

3 

COM(2004)748  of  10  November  2004;  COM(2005)545  of  4  November  2005;  COM(2006)322  of  22 
June 2006. 
As  from  2007,  13  EU  Member  States  will  form  part  of  the  euro  area,  while  the  total  number  of  EU 
Member  States  will  increase  to  27,  following  the  accession  of  Bulgaria  and  Romania.  With  the 
exception of Denmark and the United Kingdom, which have an “opt-out” status, the other 12 countries 
are  “Member  States  with  a  derogation”  which  are  expected  to  adopt  the  euro  once  the  necessary 
conditions are fulfilled. 
The latest Commission Convergence Reports were adopted on 16 May 2006 at the request of Lithuania 
(COM(2006)223)  and  Slovenia  (COM(2006)224).  The  Commission  will  issue  the  next  regular 
Convergence Report before the end of 2006.  

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government  decided  that  "Lithuania  will  aim  to  join  the  euro 
area  as  soon  as  possible.  The  more  favourable  period  for 
Lithuania to join the euro area starts from 2010." The Latvian 
authorities announced the postponement of their original target 
date  (1  January  2008)  in  spring  2006.  The  new  target  date 
remains  to  be  decided.  The  Czech  government  decided  in 
October 2006 to withdraw the country's preliminary target date 
(1 January  2010)  without  defining  a  new  date.  Hungary  also 
originally  set  1 January  2010  as  the  country's  target  date  for 
euro adoption; the date was withdrawn in 2006. 

Slovakia preserves its original target date and aims at adopting 
the  euro  on  1  January  2009.  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 table provides an overview of the current situation.  

Euro adoption date 

Member State 

1 January 2007 

Target  date 
adoption 

1 January 2008 

Slovenia 

for 

euro 

Member States 

Estonia  (to  be  confirmed), 
Cyprus, Malta 

1 January 2009 

Slovakia 

To be (re-)determined 

Czech  Republic,  Latvia, 
Lithuania,  Hungary,  Poland, 
Sweden 

2.2. 

PREPARATIONS IN SLOVENIA  

2.2.1.  General framework 

Preparations in 
Slovenia are well 
advanced, although 
further measures are 
required to 
strengthen consumer 
confidence in stable 
and fair pricing 
during the 
changeover. 

Slovenia  will  adopt  the  euro  on  1  January  2007  under  a  "big 
bang" scenario4 with a dual circulation period of 14 days.5 

Slovenia seems generally well prepared for the introduction of 
the euro. In the course of the last few months, the country has 
made  further  progress  regarding  the  practical  preparations  for 
the  introduction  of  the  euro,  in  particular  with  respect  to  the 
cash changeover. Further measures are necessary to strengthen 
consumer  confidence,  such  as  a  comprehensive  fair-pricing 
strategy agreed between consumers and retailers. 

4 

Under the "big bang" scenario, euro banknotes and coins are introduced at the same time as the euro is 
introduced as the currency of the Member State concerned.  

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Retailers are required 
to give change 
exclusively in euro as 
from 1 January 2007. 

The production of 
Slovenian coins is 
under way. 

2.2.2.  Financial sector and enterprises 

Further  details  of 
the  frontloading  and  sub-frontloading 
operation have been specified since the previous report in June 
2006.6  The  Bank  of  Slovenia  concluded  contracts  with  the 
commercial banks laying down the conditions for frontloading. 
A detailed plan for the distribution of euro banknotes and coins 
has  been  established.  The  number  of  coin  mini-kits  for  the 
general public has been increased from 150 000 to 450 000, to 
be  made  available  as  from  15  December  2006  at  commercial 
banks.  In  addition,  150 000  starter  kits  for  retailers  are 
envisaged, to be available as from 1 December 2006, as well as 
100 000  euro  coin  sets  with  the  Slovenian  national  sides, 
mainly for collectors.  

Around  30%  of  the  1510  publicly  accessible  cash  dispensers 
(ATMs) are expected to be converted by 00:30 and around 80% 
by  6:00  on  1  January  2007,  while  the  remaining  20%  are 
planned to be adapted before midnight on the same day. 

In  order  to  facilitate  the  exchange  of  national  cash  into  euro 
cash, the Slovenian commercial banks have agreed to open 42 
branches  throughout  the  country  on  1  and  2  January  2007.  A 
list of the  branches concerned and their opening hours  will be 
made public well in advance.  

According to the draft Act on the introduction of the euro it will 
be mandatory for enterprises, in particular retailers, and public 
authorities  to  give  change  exclusively  in  euro  as  from 
1 January 2007. 

2.2.3.  Public administration  

The draft Act on the introduction of the euro was submitted to 
parliament  in  July  2006  and  is  expected  to  be  adopted  in 
autumn 2006. It will notably provide rules on the changeover to 
the  euro,  the  dual  circulation  period,  the  exchange  of  tolar 
banknotes and coins  into euro cash and the redenomination of 
securities.  

Following  a  public  call  for  tenders,  Slovenia  selected  the 
Finnish  Mint  to  produce  its  euro  coins.  7  Production  started 

5 

6 

7 

The dual circulation period is the period starting on the day on which euro banknotes and coins are put 
into circulation (€-day) and during which both the national currency and the euro are legal tender in the 
Member State concerned.  
Frontloading  refers  to  the  supply  of  euro  banknotes  and  coins  by  the  national  central  bank  to  credit 
institutions  before  the  introduction  of  euro  cash.  Sub-frontloading  means  the  distribution  by  credit 
institutions of frontloaded  euro banknotes  and  coins  to  retailers  and other  businesses,  and possibly  to 
the public at large, before euro cash is introduced.  
See OJ C 254, 20.10.2006, p. 6 for the publication of the national sides of the Slovenian euro coins. 

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after  the  Council's  Decision  of  11 July 2006  lifting  Slovenia's 
derogation. 

With respect to the protection of the euro against counterfeiting 
in  Slovenia,  the  national  central  office  as  well  as  the  national 
analysis  centres for counterfeit euro banknotes and  coins  have 
been  established  within  law  enforcement.  Slovenian  experts 
participate in the relevant groups at European level, namely at 
the  ECB,  Europol  and  the  Commission/OLAF,  and  have 
received relevant training. 

2.2.4.  Consumers and the general public 

The Commission concluded in its Third Report that in Slovenia 
further measures are necessary in order to strengthen consumer 
confidence  in  stable  and  fair  pricing  during  the  changeover. 
in 
The  results  of 
September 2006, confirm that a strong majority of respondents 
in  Slovenia  (66%  compared  to  70%  in  April  2006)  fear  price 
increases on the occasion of the changeover to the euro.8  

latest  Eurobarometer,  conducted 

the 

Slovenian consumers 
fear price increases. 

themselves 

to  carry  out 

In  particular,  agreements  between  retailers  and  consumers  on 
fair  pricing  during  the  changeover  should  be  concluded. 
the 
Retailers  should  commit 
changeover fairly and not to take advantage from the transition 
to increase prices in a covert or untransparent manner. The fair-
pricing commitment takes the form of an agreement or code of 
conduct,  to  be  signed  by  the  representative  organisations  of 
retailers and consumers, at national or sectoral level. Individual 
retailers have the possibility of signing up to the agreement. In 
order to ensure their credibility and to avoid price abuses, fair-
pricing  agreements  should  be  accompanied  by  independent 
price  monitoring  in  the  months  around  the  changeover. 
Manifest  cases  of  non-compliance  should  be  made  public.  It 
should be noted that fair-pricing does not imply price-freezing, 
nor  is  the  objective  to  set  up  a  rigid  system  of  legal 
commitments  combined  with  administrative  enforcement 
measures.  

2.2.5.  Communication activities 

The communication 
campaign currently 
focuses on media 
advertising. 

In the framework of the Partnership agreement concluded with 
the European Commission on 8 November 2005, the Slovenian 
communication  campaign  (September  2006  –  January  2007) 
currently  focuses  on  advertising  in  the  national  and  regional 
media. TV and radio spots, print advertisements, web banners, 
advertising  clips  in  cinemas  and  online  games  are  produced. 
Two  publications  about  the  changeover  to  the  euro  will  be 

8 

See chapter 3.  

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distributed to all households in November and December 2006. 
Other publications such as posters and leaflets will be available 
on  request.  Presentations  during  fairs  or  in  schools  and  press 
events  will  be  organised,  and  the  Commission  will  support 
opinion polls targeting the general public. 

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

2.3. 

Preparations in Cyprus and Malta 

Cyprus and Malta aspire to adopt the euro on 1 January 2008. 
Both Mediterranean islands are strongly dependent on tourism, 
and  euro  cash  is  regularly  used  in  retail  payment  operations, 
particularly  in  tourist  areas.  Voluntary  dual  pricing  in  the 
national  currency  unit  and  the  euro  is  widespread  in  Malta, 
notably  in  tourist  shops,  and  is  also  applied  in  Cyprus  on 
receipts in major department stores and in tourist resorts. 

Cyprus is a strong financial centre which means that the switch 
to  the  euro  will  represent  a  significant  logistical  challenge  for 
the financial sector.9  

The  financial  sector  in  Malta  is  very  concentrated;  the  two 
largest  credit  institutions  manage  90%  of  bank  accounts  in 
value  terms.  The  Maltese  economy  is  characterised  by  a 
particularly  high  amount  of  national  cash  (approximately 
€2 789 per capita), corresponding to more than twice the euro-
area average (€1 374). The backflow of national currency to the 
Central  Bank  and  the  exchange  of  Maltese  lira  cash  into  euro 
cash thus require special attention in terms of organisation and 
logistics. 

2.3.1.  Preparations in Cyprus 

2.3.1.1.  General framework 

On  13  July  2006,  the  government  approved  the  national 
changeover  plan.  It  was  prepared  by  the  National  Advisory 
Committee  which  is  in  charge  of  coordinating  the  national 
preparations for the introduction of the euro. The Central Bank 
of  Cyprus  published  the  cash  changeover  plan  in  June  2006. 
Cyprus envisages a "big bang" scenario with a dual circulation 
period of one month.  

Cyprus' national changeover plan generally covers most of the 
practical  issues  for  the  introduction  of  the  euro.  However, 

Tourists already 
widely use euro cash 
in Malta, and to some 
extent also in Cyprus. 

Cyprus' national 
changeover plan is 
still short of detail in 
several respects. 

9 

Cyprus  has  400  credit  institutions,  with  about  500  offices.  The  number  of  bank  accounts  per  capita 
(2.90) exceeds the euro-area average (1.59) by 82%. Source: ECB, Blue Book.  

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Details of the 
frontloading 
operation still need to 
be defined. 

further measures are necessary to enhance consumer confidence 
the  changeover,  such  as  a 
in  stable  pricing  around 
comprehensive fair-pricing strategy agreed between consumers 
and  retailers.  Moreover,  the  national  changeover  plan  is  still 
short of detail in many respects and several important elements 
need  to  be  further  defined  (e.g.  the  frontloading  and  sub-
frontloading  operations,  the  organisation  of  the  backflow  of 
national cash, the dual display of prices, etc.).  

2.3.1.2.  Financial sector and enterprises 

Frontloading of euro banknotes and coins by the Central Bank 
of Cyprus to commercial banks is planned between October and 
December  2007.  Moreover,  banks  will  provide  enterprises,  in 
particular retailers, with euro cash before €-day so that they can 
give  change  exclusively  in  euro  as  from  1  January  2008.  Pre-
packed  coin  starter  kits  containing  a  suitable  structure  of 
denominations  for initial  transactions will be  available  both to 
businesses and the general public. The details, including on the 
timing of the frontloading operations, are still to be decided.  

Commercial  banks  will  only  hand  over  euro  cash  in  their 
transactions with customers as from 1 January 2008. As regards 
the  conversion  of  the  country's  cash  dispensers  (ATMs)  the 
present  plan  provides  that  ATMs  will  initially  issue  10-,  20- 
and 50-euro banknotes. Replacing the 50-euro banknotes by 5-
euro  notes  should  be  envisaged,  particularly  during  the  early 
phase  of  the  cash  changeover.  This  will  reduce  the  amount  of 
change which retailers need to return in cash transactions. 

A campaign urging citizens to deposit hoarded legacy cash with 
banks, or to spend it well before €-day, is planned.  

The Central Bank of Cyprus will continue to exchange national 
coins  free  of  charge  until  the  end  of  2009  and  national 
banknotes  until  the  end  of  2017.  Commercial  banks  will  be 
obliged to exchange Cyprus pound banknotes free of charge up 
to the amount of CYP 1 000 per customer per transaction, and 
Cyprus pound coins up to CYP 50 per customer per transaction 
until  30 June  2008.  Individual  banks  have  the  option  of 
increasing  these  ceilings  for  their  own  transactions.  This 
protracted period of free exchange by commercial banks sends 
an ambiguous signal to the public and risks prolonging the cash 
changeover. It would be preferable to confine the free exchange 
to the period of dual circulation in order to prompt citizens to 
exchange their legacy cash as quickly as possible.  

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2.3.1.3.  Public administration 

The government has 
approved the three 
designs for Cyprus' 
euro coins. 

The  Ministry  of  Finance  coordinates  the  preparation  of  the 
public  sector.  The  adaptation  of  all  computer  systems  used  by 
the  public  administration  is  expected  to  be  implemented  by 
September 2007.  

On  22  June  2006,  the  government  approved  the  three  designs 
for  the  national  sides  of  the  euro  coins  (see  Annex  3).  As 
Cyprus  has  no  national  mint,  the  euro  coins  will  be  produced 
abroad. 

All  three  authorities  responsible  for  the  protection  of  the  euro 
banknotes and coins against counterfeiting (the national central 
office  and  national  analysis  centres  for  counterfeit  banknotes 
and  coins)  are  situated  within  law  enforcement.  In  relation  to 
practical preparations on the protection of the euro, Cyprus has 
participated 
the 
framework of the relevant groups of the Commission, ECB and 
Europol. 

training  actions  and  cooperated 

in 

in 

2.3.1.4.  Consumers and the general public 

The mandatory dual 
display of prices will 
start one month after 
the fixing of the 
conversion rate. 

The obligation to display prices both in Cyprus pounds and in 
euro is planned to enter into force one month after the Council 
adopts  the  decision  lifting  Cyprus'  derogation  and  determines 
the  conversion  rate.  It  will  apply  until  six  months  after  the 
introduction of the euro.  

In order to address consumers' fears of abusive price increases 
around  €-day,  the  national  changeover  plan  provides  for  the 
establishment of euro observatories which will monitor whether 
the  dual  display  of  prices  is  carried  out  according  to  the 
provisions  of  the  law  on  the  adoption  of  the  euro  in  Cyprus, 
which is planned to be adopted at the end of 2006.  

2.3.1.5.  Communication activities 

Malta's national 
changeover plan 
appears both detailed 
and comprehensive. 

In  the  framework  of  the  Partnership  agreement  which  the 
European Commission signed with Cyprus on 5 May 2006 the 
Commission  will  implement  various  communication  activities 
in  co-operation  with  the  Cypriot  authorities.  A  high-level 
conference,  an  exhibition  and  a  seminar  for  local  journalists 
will  be  organised,  publications,  promotional  material  and 
portable stands produced and opinion polls conducted. 

2.3.2.  Preparations in Malta 

2.3.2.1.  General framework 

The  National  Euro  Changeover  Committee  (NECC)  was 

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for 

established  on  13  June  2005  and  entrusted  with 
the 
coordination  of  the  implementation  of  the  euro  changeover. 
Following  the  publication  of  a  Preliminary  Masterplan  in 
January  2006,  the  government  adopted  the  "Second  updated 
in  Malta"  on 
the  Euro  Changeover 
Masterplan 
12 June 2006. The latter constitutes Malta's first comprehensive 
changeover  plan  which  addresses  the  relevant  aspects  in  a 
detailed  manner.  Some  aspects  require  further  specification 
(e.g.  timing  of  frontloading  and  sub-frontloading;  accelerated 
conversion  of  ATMs;  the  content  of  starter  kits;  dehoarding 
campaign),  while  there  appears  to  be  no  justification  for  a 
"phasing-out" approach. 

2.3.2.2  Changeover scenario 

The  plan  envisages  a  "big  bang"  scenario  with  a  dual 
circulation period of one month. The possibility of a "phasing-
out" period is being considered.10  

There  seem  to  be  no  particular  indications  that  certain  sectors 
of  the  Maltese  economy  would  not  be  able  to  cope  with  the 
challenges  of  the  "big  bang"  scenario,  in  which  case  the 
"phasing-out" would not serve any clear purpose and therefore 
appears  redundant.  It  should  furthermore  be  noted  that 
references  to  the  national  currency  unit  remain  possible  after 
the  adoption  of  the  euro  whenever  historical  amounts  are 
involved  (e.g.  in  financial  reports,  tax  declarations  and  other 
documents  covering  periods  prior  to  the  introduction  of  the 
euro). 

2.3.2.3.  Financial sector and enterprises 

Six months before €-
day, credit 
institutions will 
already start 
accepting euro 
banknotes at the 
conversion rate and 
without charges. 

From  the  moment  at  which  the  irrevocable  conversion  rate  is 
fixed  (which  constitutes  the  start  of  the  period  of  mandatory 
dual  display)  credit  institutions  will  accept  euro  banknotes 
deposited  by  their  business  clients  into  Maltese  lira  or  euro 
accounts  at  the  conversion  rate,  i.e.  free  of  any  exchange  or 
administration  charges.  In  the  absence  of  fees  for  depositing 
euro cash into Maltese lira or euro accounts, retailers should be 
equally  prepared  to  accept  cash  payments  in  euro  from  their 
customers at the conversion rate and without any charges.  

In  a  subsequent  step,  frontloading  of  euro  banknotes  to  credit 

10 

The  "big  bang"  scenario  with  a  "phasing-out"  period  is  one  of  three  possible  scenarios  for  the 
introduction of the euro as provided by the Community legal framework, cf. 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).  During  the  "phasing-out"  period,  new  legal  instruments  may  still 
refer to the national currency for a period of up to one year. The Member State concerned must limit the 
application of the "phasing-out" to certain types of legal instrument, or to legal instruments adopted in 
certain fields.  

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institutions  will  start  in  late  October  or  early  November  2007 
(late  November  or  early  December  2007  for  euro  coins).  Sub-
frontloading operations to businesses will start on 17 December 
2007,  together  with  the  distribution  of  coin  starter  kits  with  a 
value  of  approximately  MTL  55  (approximately  €128)  for 
small  businesses,  notably  retailers.  The  general  public  will  be 
able 
to  buy  mini-kits  worth  approximately  MTL  5 
(approximately €11.65). 

In  addition,  as  from  1 December  2007,  credit  institutions  will 
start exchanging Maltese lira into euro at the irrevocably fixed 
conversion  rate,  i.e.  without  any  exchange  charges.  The 
authorities should however remind citizens that euro banknotes 
and  coins  become  legal  tender  only  on  €-day  and  that  they 
should not be used before that date in cash transactions.  

With  respect  to  the  conversion  of  the  country's  150  ATMs 
(approximately), it is presently foreseen that at least one ATM 
in  all  major  localities  will  issue  euro  banknotes  as  from 
1 January 2008 and that low denomination euro banknotes (10- 
and  20-euro  banknotes)  will  be  dispensed  as 
from 
1 January 2008.11  Further  steps  are  necessary  to  ensure  a 
complete and timely conversion of all ATMs as of €-day.  

In  view  of  the  high  volume  of  Maltese  lira  cash  detained  on 
average  by  Maltese  citizens,  the  Central  Bank  and  the  NECC 
are  planning  a  campaign  for  the  early  return  of  Maltese  lira 
banknotes  and  coins  as  of  mid-2007,  provided  the  decision  to 
lift  the  country's  derogation  has  been  taken  by  that  time.  The 
Central Bank will redeem national banknotes and coins free of 
charge at the conversion rate for ten and two years respectively 
after  the  Maltese  lira  ceases  to  be  legal  tender.  Credit 
institutions will exchange Maltese lira notes and coins into euro 
banknotes  and  coins  free  of  charge  for  their  clients,  and  for 
non-clients  up  to  the  amount  of  MTL  250,  until  the  end  of 
March  2008.  As  in  the  case  of  Cyprus  a  limitation  of  the  free 
exchange to the period of dual circulation should be considered 
in order to avoid prolonging the cash changeover.  

In  order  to  assist  enterprises  in  their  changeover  preparations, 
the  NECC  has  published  a  "Euro  changeover  checklist  for 
business organisations", complemented by a toolkit for retailers 
containing information on the planning and implementation of 
the  retailers'  changeover  preparations,  a  euro  converter  and  a 
conversion chart, thereby setting examples of good practice. 

11 

See ECB, Blue Book. 

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A campaign for the 
early return of 
Maltese lira cash is 
planned.  

Shops should display 
any cash handling 
charges for accepting 
euro payments 
separately. 

2.3.2.4.  Public administration 

The  three  designs  for  the  national  sides  of  the  Maltese  euro 
coins  were  selected  following  a  public  consultation;  the  final 
designs  were  published  by  the  Central  Bank  on  13  October 
2006  (see  Annex  3).  As  Malta  does  not  have  a  national  mint, 
the  Maltese  euro  coins  will  be  produced  by  the  Monnaie  de 
Paris, the mint chosen following a public call for tenders.  

The  national  analysis  centres  for  counterfeit  banknotes  and 
coins are established and situated in the Central Bank of Malta; 
the national central office is within law enforcement. Malta has 
been cooperating with other countries in the framework of the 
relevant  groups  at  Europol,  the  ECB  and  Commission/OLAF 
and  Maltese  experts  have  been  trained  inter  alia  via  the 
Commission programme ‘Pericles’. 

2.3.2.5.  Consumers and the general public 

Dual  display  of  prices  in  euro  and  Maltese  lira  will  be 
mandatory  from  1  July  2007  (or  from  the  date  on  which  the 
conversion  rate  is  being  irrevocably  fixed,  if  later)  until 
30 June 2008. It will be applicable to all governmental entities, 
businesses,  non-profit  organisations  or  other  entities  for  the 
display  of  monetary  amounts,  prices  or  values  of  goods  and 
services  offered  to  the  consumer.  Voluntary  dual  display  will 
be  promoted  by  the  NECC  as  from  1 January  2007  and 
guidelines for both mandatory and voluntary dual display have 
been  published.  They  notably  provide  that  the  dual  display 
must  be  based  on  the  conversion  rate  as  soon  as  it  has  been 
fixed  or  (for  the  voluntary  display)  on  the  ERM  central  rate. 
Any  cash  handling  charges  imposed  by  retailers  accepting 
payments  in  euro  before  the  credit  institutions  lift  the  charges 
for the deposit of euro banknotes must be displayed separately 
from the price in euro. Fines or other penalties may be imposed 
in the event of breaches of the guidelines. 

While  there  is  in  general  no  particular  need  to  apply  dual 
displays before the conversion rate has been fixed, this may be 
different in countries which are strongly dependent on tourism, 
such  as  Cyprus  and  Malta.  Such  (voluntary)  dual  display  may 
either  be  used  for  information  purposes  only  or  otherwise 
indicate  that  retailers  are  prepared  to  accept  payment  both  in 
national  currency  and  in  euro.  In  this  respect,  the  Maltese 
guidelines  not  only  contribute  to  a  uniform  implementation  of 
dual displays in all shops opting for the voluntary approach, but 
also to the transparency of charges, and therefore constitute an 
example of good practice in an economy where dual display is 
common already before the fixing of the conversion rate. 

EN 

11 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The FAIR initiative 
will foster fairness 
and transparency in 
the pricing of goods 
and services during 
the changeover. 

The Maltese 
information 
campaign on the 
euro has been 
launched. 

The  NECC's  FAIR  (Fair-pricing  Agreements  In  Retailing) 
initiative  will  become  effective  as  from  1  January  2007.  The 
initiative  fosters  fairness  and  transparency  in  the  pricing  of 
goods and services during the changeover and at the same time 
assists  consumers  in  becoming  familiar  with  the  new  scale  of 
values.  Retailers  and  other  enterprises 
transacting  with 
consumers  will  be  invited  to  subscribe  to  FAIR  with  the  Euro 
Observatory12,  which  will  coordinate  FAIR  and  monitor  its 
implementation.  Companies  signing  up  to  FAIR  commit 
themselves  to  follow  the  NECC's  guidelines  (e.g.  on  dual 
display  of  prices)  and  to  apply  a  fair  pricing  strategy,  in 
particular  not  to  increase  prices  for  the  simple  reason  that  the 
euro  is  being  introduced.  They  will  be  entitled  to  display  the 
FAIR campaign mark and be granted free training for their staff 
dealing with consumers. The approach to fair pricing promoted 
by  the  Maltese  authorities,  based  on  clear  commitments  and 
credible  monitoring,  provides  a  valuable  tool  in  fostering 
consumer  confidence  during  the  changeover.  The  government 
to 
has  undertaken,  when  adapting  monetary  amounts 
convenient  amounts  in  euro,  to  smooth  them  in  favour  of  the 
consumer, thus setting an example to the private sector.  

The NECC invited relevant organisations to submit innovative 
proposals  which  could  enhance  consumers'  confidence  in  the 
changeover and notably allay citizens' concerns about possible 
price increases. Proposals were received by 6 October 2006 and 
are currently being assessed. 

2.3.2.6.  Communication activities 

The  NECC  has  also  embarked  on  a  national  information 
campaign,  including  the  launch  of  a  national  helpline  for  the 
public and the launch of specific campaigns for different target 
groups  (consumers,  business  community,  children,  the  elderly 
and  vulnerable  groups).  Malta's 
its  euro 
communication  campaign  is:  “the  euro  –  in  our  common 
interest”.  A  media  campaign  already started in  2006, although 
the  intensive  advertising  campaign  will  be  concentrated  in  the 
last  months  of  2007.  Under 
the  Partnership  agreement 
concluded with the European Commission on 5 May 2006, the 
Commission  will  partially  finance  the  production  of  some 
the  salaries  of 
publications, 
information officers.  

the  media  campaign  and 

slogan 

for 

2.4. 

Preparations in the other Member States 

For certain 

On 30 June 2006, the Czech National Co-ordination Group for 

12 

See  Commission  Recommendation  of  23  April  1998  on  dialogue,  monitoring  and  information  to 
facilitate the transition to the euro (OJ L 130, 1.5.1998, p. 29). 

EN 

12 

   EN 

 
 
 
 
 
 
                                                 
countries, there have 
been no major 
developments in 
terms of practical 
preparations since 
the previous report 
issued in June 2006. 

the  Euro  Introduction  adopted  a  recommendation  to  the 
government  concerning  the  changeover  scenario,  suggesting 
that  it  opt  for  the  "big  bang"  scenario.  This  recommendation 
was approved by the governement on 25 October 2006  

Both  Estonia  and  Lithuania  implemented  their  communication 
campaigns  after  the  conclusion  of  the  Partnership  agreements 
signed  with  the  European  Commission  on  8 November  2005, 
but the postponement of the introduction of the euro has slowed 
down  the  information  activities.  Both  countries  are  currently 
updating and revising their communication strategies. 

Latvia  and  Slovakia  produced  their  first  draft  communication 
strategies. In June 2006, preliminary discussions started with a 
view  to  the  conclusion  of  Partnership  agreements  with  the 
communication 
the 
Commission 
activities.  

supporting 

countries' 

The latest results 
confirm the positive 
evolution of people's 
general attitude 
towards the euro. 

In  Hungary,  Poland  and  Sweden, 
noteworthy developments since the previous report.  

there  have  been  no 

Annexes 2 and 3 provide an overview of the status of practical 
preparations in the other Member States. 

3. 

State  of  public  opinion  in  the  recently  acceded 
Member States 

The most recent Eurobarometer survey on public opinion in the 
recently  acceded  Member  States  was  conducted  in  September 
2006.13  The  results  broadly  confirm  most  of  the  trends  of  the 
April 2006 survey. 

As  far  as  familiarity  with  and  knowledge  about  the  euro  are 
concerned, the results of the September survey are very similar 
to  the  previous  ones.  The  results  relating  to  the  perceived 
information level reveal a modest improvement. 

The  overall  climate  regarding  the  euro  introduction  is  still 
largely positive, and has generally improved compared to 2004 
or  2005,  even  though  support  decreased  slightly  compared  to 
April  2006.  The  situation  however  differs  markedly  from 
country to country (see graph). Overall, 50% of respondents in 
the recently acceded Member States believe that the adoption of 
the euro will have, on average, positive consequences for their 
country,  which  is  slightly  (2  percentage  points)  lower  than  in 
April 2006. 

The  September  results  also  broadly  confirm  the  results  of 
previous  surveys  as  regards  people's  expectations  about  the 

13 

http://ec.europa.eu/public_opinion/flash/fl191_en.pdf 

EN 

13 

   EN 

 
 
 
 
 
                                                 
euro. While acknowledging the tangible benefits for daily life, 
their expectations of its macroeconomic and political effects are 
mixed. 

Opinions on the replacement of the national currency with the euro

% very and rather happy

% very and rather unhappy

CYPRUS

CZECH REPUBLIC

ESTONIA

HUNGARY

LITHUANIA

49

40

4
0
0
2
/
9

59

23
4
0
0
2
/
9

53

52

40

5
0
0
2
/
9

39

6
0
0
2
/
4

58

32

6
0
0
2
/
9

55

58

39

4
0
0
2
/
9

33

5
0
0
2
/
9

52

39

6
0
0
2
/
4

LATVIA

MALTA

64

64

64

21
5
0
0
2
/
9

28

6
0
0
2
/
4

26

6
0
0
2
/
9

Source: 
FLASH EB 191
September 2006
GALLUP

49

48

41

4
0
0
2
/
9

40

5
0
0
2
/
9

42

41

6
0
0
2
/
4

47

44

6
0
0
2
/
9

48

41

6
0
0
2
/
9

64

57

60

57

29

4
0
0
2
/
9

24
5
0
0
2
/
9

31

6
0
0
2
/
4

32

6
0
0
2
/
9

POLAND

49

40

4
0
0
2
/
9

54

50

49

34

5
0
0
2
/
9

39

6
0
0
2
/
4

41

6
0
0
2
/
9

56

33

4
0
0
2
/
9

66

27

4
0
0
2
/
9

49

37

5
0
0
2
/
9

56

35

6
0
0
2
/
4

SLOVENIA

58

64

34

5
0
0
2
/
9

30

6
0
0
2
/
4

46

45

6
0
0
2
/
8

72

24
6
0
0
2
/
9

58

34

4
0
0
2
/
9

69

25

5
0
0
2
/
9

56

53

33

6
0
0
2
/
4

32

6
0
0
2
/
9

SLOVAKIA

50

50

54

55

42

42

4
0
0
2
/
9

5
0
0
2
/
9

36

6
0
0
2
/
4

36

6
0
0
2
/
9

Q15. Are you personally happy or not that the euro could replace the (NATIONAL CURRENCY)?

EN 

14 

   EN 

 
 
 
ANNEX 1 – Preparations at Community level 

1. 

Euro coins 

On  7  June  2005,  at  the  initiative  of  the  Commission,  the  Ecofin  Council  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  amended.  The 
necessary design and technical work has been finalised and the new common sides now depict 
the  European  continent.14  Slovenia  will  be  the  first  euro-area  Member  State  to  issue  euro 
coins with the new common side in 2007. The other euro-area Member States may also start 
to  apply  the  new  common  sides  as  from  2007  for  new  production,  and  will  in  any  event 
switch to the new common side in 2008 at the latest. 

In July 2006, the Memorandum of Understanding on the start of euro coin production and on 
preparatory tasks prior to the start of production was signed between the Republic of Cyprus, 
the euro-area Member States and the European Commission.  

2. 

Communication activities  

Preparing  citizens  in  Slovenia  for  the  introduction  of  the  euro  has  been  a  priority  for  the 
Commission's  communication  policy  in  the  second  half  of  2006.  Following  the  decision  by 
the  Council  on  11  July  2006  to  allow  Slovenia  to  adopt  the  euro  on  1  January  2007,  the 
Commission has, in close cooperation with the Slovenian authorities, organised a number of 
communication  activities  and  supported  actions  undertaken  by  the  Slovenian  government 
(publications, seminars, website, call centres, advertising and media campaign, etc.).  

Both  before  and  after  the  changeover  to  the  euro,  the  Commission  will  carry  out  surveys 
targeting Slovenian enterprises, including retailers, and commercial banks. The purpose is to 
collect  information,  notably  about  the  level  of  preparedness  for  the  new  currency,  the  cash 
changeover and the conversion of administrative and financial systems.  

The  Commission  also  started  to  implement  the  Partnership  Agreements  with  Cyprus  and 
Malta  signed  on  5  May  2006.  The  Partnership  Agreements  cover  technical  and  financial 
support  to  the  countries  concerned  for  their  national  communication  campaigns,  including 
publications, media campaigns, conferences and opinion polls. 

14 

See OJ C 225, 19.9.2006, p. 7, for the official publication of the new common sides.  

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 speed up as the changeover approaches.  

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

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 operations16 
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 
Coin starter kits for retailers 
Coins mini-kits for general public 
Design  of  national  side  of  the  euro 
coins 
Supply arrangements for euro coins 

in  euro  by 

CZ  EE  CY  LV  LT  HU  MT  PL 

SI 

SK 

SE 

X 

X 
X 
X 

X 
X 
X 

X 

X 

X 
X 
X 

X 
X 
X 

X 
X 
X 

X 

X 
X 
X15 

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 
X1 

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 

15 
16 

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 
X 

X 

X 

X 

X 
X 
X 

X 

X 

X 

X 

X 
X 

EN 

17 

   EN 

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

Czech Republic 

Estonia 

Changeover plan 

National target date for 
euro adoption 

National 
institution 

coordinating 

The  preliminary  target  date  (1  January 
2010)  has  been  withdrawn  by 
the 
government  on  25  October  2006.  No  new 
date has been set for the time being. 

1 January 2008 (to be confirmed) 

The government will assess the validity of the current target 
date in autumn 2006. 

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

of 

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

(Approved) 
Changeover Plan  

National 

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

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

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

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

to 

the  Resolution  of 

the  Minister  of  Finance 

According 
the 
Governement  No.  1231  of  25  October 
2006 
in 
cooperation  with  the  Governor  of  the 
Czech  National  Bank  will  examine  the 
current  strategy  and  submit  the  results  to 
the government by 31 August 2007. 

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

The  National  Changeover  Plan  will  be 
submitted to the government by the end of 
March 2007. 

Changeover details 

Type of scenario 

"Big bang" 

adopted 

On  30  June  2006,  the  Czech  National 
Group 
Coordination 
a 
government 
the 
to 
recommendation 
concerning 
scenario, 
changeover 
the 
suggesting  that  it  opt  for  the  “big  bang” 
scenario.  The 
recommendation  was 
the  government  on  25 
approved  by 
October 2006. 

Dual circulation period  

Exchange  of  national 
banknotes and coins 

The  fourth  version  of  Estonia's  National  Changeover  Plan 
was 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 

"Big bang". 

Two 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. 

EN 

18 

   EN 

 
 
 
 
 
 
for 

Campaign 
rapid 
withdrawal  of  national 
banknotes and coins 

Frontloading  and  sub-
frontloading 

ATMs issuing euro only 

Change in euro only 

Dual display of prices 

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

Adaptation  of  national 
law 

to 
legislative  needs  with  respect 
The 
national law adaptation for the introduction 
of  the  euro  are  being  analysed  in  the 
framework  of  the  Working  Group  for 
Legislation  of  the  National  Coordination 
Group on the Euro Introduction. 

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. 

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

In  general,  change  will  be  given  in  euro,  but  the  option  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. 

Leaflets  containing  information  on  the  euro  were  made 
available to the public in summer 2006. 

Draft  Act  on  the  Introduction  of  the  Euro  ("umbrella  law") 
and draft amendments to the Business Code are in the final 
stage of inter-ministerial consultation.  

Euro banknotes and coins 

Design  of  the  national 
side 

Nr  of  different  coin 
designs 

Competition under consideration. 

Design selected and published in December 2004. 

One 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, 
date: 
activation 
Government/Ministry 

Central 
www.zavedenieura.cz 

euro 

address: 

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

Governmental EU information department: 

EN 

19 

   EN 

 
 
 
 
 
 
 
 
of  Finance;  Central 
Bank 

http://www.euroskop.cz/euro 

Czech 
Bank: 
National 
http://www.cnb.cz/cz/mezinarodni_vztahy/
euro/ 

of 

Industry 

Ministry 
http://www.mpo.cz/cz/eu-a-vnitrni-
trh/euro-pristoupeni-cr-k-
eurozone/default.html 

and  Trade: 

Partnership agreement 

Signed 8 November 2005. 

Other issues 

ERM II entry 

Twinning agreement 

28 June 2004 

Under  preparation  (discussion  on  details 
with  the  Commission  and  with  Austrian 
and Slovenian experts.) 

EN 

20 

   EN 

 
 
 
 
STATE OF PRACTICAL PREPARATIONS (October 2006) 

Cyprus 

Latvia 

Changeover plan  

National target date for 
euro adoption 

1 January 2008 

1 January 2008 (under revision) 

National 
institution 

coordinating 

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  was  approved 
by  the  National  Advisory  Committee  on  29 
March 2006 and by the Council of Ministers on 
13  July  2006.  The  plan  was  published  on  the 
national euro web site. 

The  Cabinet  of  Ministers  of  the  Republic  of  Latvia 
approved  the  Action  Plan  for  Implementation  of  the 
Single  European  Currency  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   1–31 January 2008. 

One month. 

Exchange  of  national 
banknotes and coins 

The  exchange  of  national  banknotes  and  coins 
is  governed  by  the  (draft)  “umbrella  law”  for 
the  adoption  of  the  euro  in  Cyprus.  The  draft 
law provides for the exchange of banknotes and 
coins  by  the  Central  Bank  for  10  years  and  2 
years  respectively.  Commercial  banks  will 
exchange national banknotes and coins for euro, 
free  of  charge,  at  least  for  the  amount  of  CYP 
1 000  for  banknotes  and  CYP  50  for  coins  per 
transaction,  for  a  period  of  6  months  after  €-
day. 

for 

rapid 
Campaign 
withdrawal  of  national 
banknotes and coins 

A campaign is planned to encourage citizens to 
use  hoarded  cash  or  to  deposit  it  with  banks 
before the introduction of the euro. 

Frontloading  and  sub-
frontloading 

Planned  between  October  and  December  2007. 
A  working  group  was  set  up  between  the 
Central  Bank  and  commercial  banks  to  define 
processes and timing. Frontloading of coins will 
be  carried  out  from  a  Coin  Centre,  currently 
under  construction.  Starter  kits  will  be  issued 
both to businesses and the general public. 

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 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  Commercial  banks  will  make  the  necessary 
arrangements  to  issue  only  small  denomination 
(10-,  20-,  and  50-euro 
euro  banknotes 
banknotes) in ATMs as from €-day.  

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

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, as far as possible. 

After the end of the dual circulation period.  

EN 

21 

   EN 

 
 
 
Dual display of prices 

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

Adaptation  of  national 
law 

Compulsory  three  months  from  before  until  one  year 
after €-day. 

the  derogation  and 

According to the draft "umbrella law", the dual 
display  of  prices  will  be  mandatory  in  the 
period  starting  one  month  after  the  abrogation 
of 
the 
conversion  rate  between  the  euro  and  the 
Cyprus  pound  until  six  months  after  €-day. 
Ministries  and  the  Central  Bank  will  issue 
circulars to supplement the law.  

the  fixing  of 

 Euro  observatories  will  be  established  in  all 
districts.  

Monitoring  of  price  developments  in  the  retail  trade, 
verification  of the  accuracy  of price  displays and  "fair 
trader" campaign envisaged. 

A  draft  "umbrella  law"  for  the  adoption  of  the 
euro  in  Cyprus  is  planned  to  be  adopted  at  the 
end of 2006. The impact of the euro on existing 
laws  has  been  assessed  and  the  necessary 
changes are under preparation.  

"Umbrella  law"  on  basic  provisions  for  the  euro 
changeover  in  Latvia  is  currently  being  prepared.  All 
ministries are involved in reviewing national legislation 
to 
the  necessary  amendments  and  new 
legislation required. 

identify 

Euro banknotes and coins 

Design  of  the  national 
side 

The  Council  of Ministers  approved  the  designs 
for  the  national  sides  of  the  euro  coins  on 
22 June  2006.  The  designs  were  unveiled  on 
11 October 2006. 

In process. 

Nr  of  different  coin 
designs 

Three designs. 

Four designs. 

Coin supplier 

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

Coins  will  be  minted  abroad.  The  call  for  tenders  for 
the production of coins will be held once the design has 
been finalised. 

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 

Addresses  of  websites 
on  euro  changeover, 
activation date: 

Ministry 
Finance/Government; 
Central Bank 

of 

A  Comprehensive  Strategic  Communication 
Plan  for  the  Adoption  of  the  Euro  in  the 
Republic  of  Cyprus  was  approved  by  the 
Council  of  Ministers  on  5  April  2006.  The 
relevant  action  plans  were  approved,  and 
implementation has started.  

www.euro.cy, activated on 31 May 2006 as part 
of the communication campaign's official kick-
off  event.  Other  government  websites  and  the 
Central  Bank's  website  provide  links  to  the 
changeover website. 

Partnership agreement  Signed on 5 May 2006. 

Other issues 

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

Planned  euro  changeover  website:www.eiro.lv.  A 
working group has been set up to develop the concept 
of this site. 

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. 

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 

22 

   EN 

 
 
 
 
 
Changeover plan  

National target date for 
euro adoption 

National  co-ordinating 
institution 

(Approved) 
Changeover Plan  

National 

STATE OF PRACTICAL PREPARATIONS (October 2006) 

Lithuania 

Hungary 

The  specific  target  date  has  not  been  set. 
According  to  the  government,  Lithuania  will 
aim to join the euro area as soon as possible and 
the more favourable period for Lithuania to join 
the euro area starts from 2010.  

 The  update  of 
the  Convergence  Programme  of 
1 September  2006  aims  at  meeting  the  Maastricht 
criteria in 2009. A new target date for the adoption of 
the euro has not been specified. 

for 

Commission 
the 
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, has been published:  

In  2006,  the  Central  Bank  prepared  a  proposal  for  a 
national  changeover  plan  focusing  on  its  tasks  and 
forwarded  it,  inter  alia,  to  the  Ministry  of  Finance.  A 
summary  of  this  proposal  was  published  in  October 
2006. 

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. 

One month. 

Exchange  of  national 
banknotes and coins  

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

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

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

for 

Campaign 
rapid 
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 during the last month before €-
day. 

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  Business  organisations  will  be  encouraged  to   

EN 

23 

   EN 

 
 
 
 
 
 
 
 
building  measures  (e.g. 
with 
agreements 
retailers) 

adopt  a  Code  of  Good  Business  Practice  (on 
correct  conversion,  no  price  increases  etc.); 
enterprises  committing 
themselves  will  be 
authorised to use the special logo of the Code. 

Adaptation  of  national 
law 

A  Law  on  the  Adoption  of  the  Euro  has  been 
drafted  (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 
once the decision to lift the derogation has been 
taken.  

All  existing  legal  acts  that  need  to  be  adapted 
with  a  view  to  the  euro  were  identified  by 
December 2005.  

Euro banknotes and coins 

Design  of  the  national 
side 

Approved. 

Nr  of  different  coin 
designs 

Three 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 

The  "Public  information  and  communication 
strategy  on 
the  euro  of 
the  adoption  of 
Lithuania" was approved by the government on 
29  September  2005.  The  strategy  is  currently 
under revision. 

The  Bank  of  Lithuania  has  completed  the 
procedure for the selection of a provider of euro 
information services.  

Addresses  of  websites 
on  euro  changeover, 
activation date: 

Websites  of  the  Bank  of  Lithuania  (www.lb.lt) 
and of the Ministry of Finance (www.finmin.lt). 
A national website is under development. 

www.euro.mnb.hu  (activation  envisaged  in  the  course 
of November 2006) 

Ministry 
Finance/Government; 
Central Bank 

of 

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 BE – LT on tax-related questions;  
between BE – LT on departmental management 
related to the changeover.  

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

EN 

24 

   EN 

 
 
 
 
 
 
 
STATE OF PRACTICAL PREPARATIONS (October 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 and coins into euro notes and 
coins, free of charge for their clients and up to a 
'household  amount'  of  MTL  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 Maltese lira ceases to be legal tender. 

A  de-hoarding  campaign  is  being  designed  by 
the NECC and the Central Bank of Malta. The 
campaign  will  target  the  general  public  and 
specific target groups and is expected to unfold 
as of mid-2007 (after the decision lifting Malta's 
derogation).  

Frontloading  to credit  institutions  is  planned to 
start  from  late  October/early  November  2007 
and  sub-frontloading  by  credit  institutions  to 
businesses and other cash handlers is planned to 
start from 17 December 2007. 

As  from  1  December  2007,  credit  institutions 
will  exchange  Maltese  lira  into  euro  at  the 
irrevocably  fixed  conversion  rate  without  any 
exchange charges.  

ATMs issuing euro only  It is planned that at least one ATM in all major 
localities  will  dispense  euro  banknotes  as  from 
1 January 2008. 

Change in euro only 

Planned as from 1 January 2008. 

EN 

25 

   EN 

 
 
 
 
 
 
 
 
 
 
 
Dual display of prices  Mandatory  dual  display  of  prices  from  1  July 
2007  (or  from  the  irrevocable  fixing  of  the 
conversion  rate,  if  later)  until  30  June  2008. 
Voluntary dual display will be promoted by the 
NECC as from 1 January 2007. 

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

Following  consultation  both  within  the  NECC 
and  of  the  public,  the  Fair-pricing  Agreements 
in  Retailing  (FAIR)  initiative  is expected  to  be 
launched by the last quarter of 2006. The FAIR 
initiative  provides  for  the  conclusion  of  formal 
agreements  in  which  retailers  notably  commit 
themselves not to increase prices for the simple 
reason that the euro is introduced.  

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

The NECC has requested relevant organisations 
to  submit  innovative  and  creative  proposals 
which  enhance  consumers’  confidence  in  the 
euro  changeover  process.  The  NECC  will  be 
co-financing such initiatives. 

Adaptation  of  national 
law 

The Euro Adoption Act 2006 entered into force 
on  29  September  2006.  A  workshop 
is 
identifying the need for amendments to existing 
legislation and is drafting respective proposals.  

Euro banknotes and coins 

Design  of  the  national 
side 

The  three  designs  for  the  national  sides  of  the 
Maltese  euro  coins  were  selected  following  a 
public  consultation;  the  final  designs  were 
published  by  the  Central  Bank  on  13 October 
2006. 

Public survey. 

Nr  of  different  coin 
designs 

Three designs. 

Coin supplier 

As  Malta  does  not  have  a  national  mint,  the 
Maltese  euro  coins  will  be  produced  by  the 
Monnaie  de  Paris,  the  mint chosen  following  a 
public call for tenders. 

National Mint. 

Estimation  on  the  need 
for banknotes and coins 

Estimated 92.5 million euro notes. 

Between 4 and 5 billion coins. 

Estimated 206 million euro coins. 

Communication activities  

Communication 
strategy 

"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 

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 

including  consumers, 

EN 

26 

   EN 

 
 
 
 
 
 
 
different target groups. 

The  NECC  launched  its  information  campaign 
in  June  2006.  The  NECC  unveiled  the  slogan 
“the  euro  –  in  our  common  interest”  and 
launched  a 
three-digit  helpline  which  has 
proven  popular  among  the  general  public.  The 
campaign  includes  public  relations  initiatives, 
articles  on  national  newspapers  and  magazines 
and  an  advertising  campaign.  The  team  of 
information 
constantly 
radio 
participating 
programmes  as  well  as  giving  public  talks  to 
NGOs,  local  councils  and  other  important 
multipliers.  A  specific  campaign 
targeting 
businesses in planned in autumn. 

is 
television 

officers 

also 

and 

in 

Addresses  of  websites 
on  euro  changeover, 
activation date:  

Government/Ministry 
of Finance;  

Central Bank 

NECC: http://www.euro.gov.mt 

Bank 

Central 
Malta: 
http://www.centralbankmalta.com/site/euroadop
tion.html 

of 

Ministry of Finance: http://mfin.gov.mt 

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. 

Between  AT-MT:  establishment  of  Euro 
Observatory. 

EN 

27 

   EN 

 
 
 
 
STATE OF PRACTICAL PREPARATIONS (October 2006) 

Slovenia 

Slovakia 

Sweden 

Changeover plan 

National  target  date  for 
euro adoption 

1 January 2007 (euro adoption date) 

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. 
First  update  was  adopted  by 
the 
government  on  2  February  2006.  Both 
documents are available on: 
http://www.bsi.si/en/publications.asp?Ma
paId=717 
and  
http://www.evro.si/en/slo-and-
euro/documents/. 

The  National  Changeover  Plan  was  approved 
on 6 July 2005: 

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

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-

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

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  16 
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 
mini-kits  for  the  general  public  as  of  15 
December  2006,  while  starter  kits  for 
retailers as of 1 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  to  30 
June 2007. 

Compulsory:  from  one  month  after the  fixing 
of  the  conversion  rate  to  one  year  after  euro 
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 

Evolution  of prices  in  2008  and  2009  will  be 
consumers  will  be 
closely  monitored; 
informed  of  the  results;  consumers  can  raise 

EN 

28 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
and 

goods 

services 

specific 
in 
cooperation with the Statistical Office of 
the Republic of Slovenia and will publish 
the  names  of  retailers  who  increase 
prices excessively. 

Adaptation of national law  The  draft  Introduction  of  the  Euro  Act 
was sent to the ECB for consultation on 3 
May 2006 and submitted to Parliament in 
July  2006.  Amendments  to  the  Salary 
Tax  Act  were  adopted  in  December 
the  Bank  of 
2005;  amendments 
Slovenia  Act, 
Payment 
the 
to 
Transactions  Act,  to  the  Minor  Offences 
Act  and  to  the  Companies  Act  were 
adopted  in  April  2006.  The  amendments 
to the Collateralisation Act were adopted 
in June 2006. 

to 

Euro banknotes and coins 

Design of the national side 

Approved. 

complaints  with  supervisory  bodies  or  apply 
to the courts; voluntary ethical code has been 
drafted with retailers and entrepreneurs. 

"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  Eight designs. 

Coin supplier 

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

Three designs. 

National Mint. 

Estimation  on  the  need  for 
banknotes and coins 

94  million  banknotes  and  296  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 
Finance;  

of 

Central Bank 

National website on euro changeover:  

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

http://www.evro.si, activated on  
15 February 2006. 
Special  section  on  the  euro  on  the 
webpage 
of  Slovenija: 
http://www.bsi.si. 
Toll-free phone line: 080 2002. Free euro 
post cards. 

of  Bank 

http://www.euromena.sk. 

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 (finalised). 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX 4  

Euro coins designs of the future national sides of Cyprus 

1- and 2-euro coin  10-, 20- and 50-cent coin 

1-, 2- and 5-cent coin 

EN 

30 

   EN 

 
 
 
 
Euro coins designs of the future national sides of Malta 

1- and 2-euro coin 

10-, 20- and 50-cent coin 

1-, 2- and 5-cent coin 

EN 

31 

   EN 

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

The  European  Commission  recently  commissioned  another  Eurobarometer  survey  on  public 
opinion  in  the  recently  acceded  Member  States  concerning  their  attitudes  towards  and 
knowledge  about  the  introduction  of  the  euro.  Gallup  Europe  conducted  this  survey  in 
September  2006.  It  was  the  fourth  such  Eurobarometer  survey  (following  surveys  in 
September 2004 and 2005, and in April 2006), again polling over 10 000 citizens. 

1. 

Familiarity with and knowledge about the euro 

Respondents  in  the  recently  acceded  Member  States  are  already  relatively  familiar  with  the 
single  currency.  77%  of  the  respondents  have already  seen  euro  banknotes  while  70%  have 
seen euro coins. Less than half of the respondents have already used the euro. Generally, euro 
banknotes are better known and more used in the recently acceded Member States than coins.  

In addition to these practical aspects, the survey also tested the respondents' knowledge of the 
euro's general features. As to the design of the single currency, only a minority of respondents 
was  able  to  respond  correctly  that  banknotes  are  identical  throughout  the  euro  area  (45% 
compared to 46% in April 2006), and that the coins have national designs on one side (37%, 
unchanged). As in April 2006 and before, only 40% identified the correct number of euro-area 
Member  States.  A  relatively  stable  majority  of  citizens  (67%,  previously  69%)  in  each 
surveyed country believes that their country can decide whether it will adopt the euro or not. 

Regarding the expected date of introduction of the euro, the results show a marked shift since 
April  2006,  corresponding  to  actual  developments.  While  in  spring  the  majority  of  the 
population of the Baltic States believed that their countries would adopt the euro before 2008 
(72%  in  Lithuania,  71%  in  Estonia  and  51%  in  Latvia),  only  a  minority  now  shares  this 
opinion (35%, 44% and 36%, respectively).  

2. 

Information and information channels 

The  results  of  the  September  2006  survey  reveal  a  moderate  increase  in  the  perceived 
information level, both on average as well as in each country except Latvia. Overall, 5% of 
respondents believe that they are very well informed about the euro, and another 35% report 
that  they  are  rather  well  informed.  These  figures  have  improved  for  the  second  time, 
suggesting  that  the  dissemination  of  information  has  been  gradually  improving  over  time. 
Inversely,  58%  consider  that  they  are  not  very  well,  or  not  at  all,  informed  about  the  euro, 
including respondents in Cyprus (60%) and Malta (62%), which are aiming to introduce the 
euro on 1 January 2008. The results suggest that demand for information is far from satisfied 
for the time being.  

As  in  April  2006,  an  average  of  77%  of  respondents  express  their  confidence  in  national 
central  banks  as  a  trusted  source  of  information.  European  institutions  are  perceived  as  the 
second most trusted source (results being slightly lower than in April 2006: 67% relative to 
70%). Most respondents continue to prefer mass media and banks as channels of information 
and are mainly interested in practical information on the euro introduction, e.g. the value of 
the euro (93%), how to avoid being cheated (92%), the changeover scenario (90%), etc. The 
survey confirms once more that a dual display of prices is considered essential in preparing 
for the changeover, both in shops (85%) and on utility bills (75%).  

3. 

Perceptions of and support for the single European currency 

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As  in  April  2006,  citizens  in  the  recently  acceded  Member  States  are  prepared  –  at  least 
mentally – to have their currency replaced by the euro: 47% are very or quite happy about a 
future changeover, which is comparable to the April 2006 findings. The trends are very much 
country-dependent: the relative share of citizens happy about the euro changeover increased 
in  five  of  the  ten  recently  acceded  Member  States,  while  it  has  decreased  in  the  other  five 
since April 2006.  

Generally,  citizens  expect  that  the  advantages  will  be  greater  for  their  country  than  for 
themselves. Only 8% think that the introduction will have a very positive effect (no change 
compared to April 2006), and 42% that it will have a positive rather than a negative effect on 
the  country  (a  2-percentage-point  decrease  from  April  2006).  Similar  figures  on  a  personal 
level  show  that  8%  expect  very  positive  (+1),  and  36%  rather  positive  (-3)  consequences 
when it comes to adopting the single currency in their country. A significant minority of 40% 
expect  negative  personal  consequences,  but  fewer  citizens  fear  a  similar  outcome  for  their 
country (36%).  

Support  for  the  euro  decreased  significantly  in  Hungary  and  Cyprus,  and  somewhat  less  in 
Poland, Malta and Latvia, while increasing in the other Member States. Citizens in Malta and 
Cyprus remain sceptical, despite the possibility of their countries adopting the euro in the near 
future.  While  only  31%  of  respondents  expect  positive  consequences  for  Malta,  48% 
(compared to 42% previously) appear to be very or rather happy with the euro replacing their 
national  currency.  In  Cyprus,  the  picture  is  more  pessimistic:  only  29%  expect  positive 
consequences  for  the  country,  which  is  the  lowest  rate  of  all  ten  countries,  and  only  32% 
(compared to previously 39%) are very or rather happy.  

4. 

Expectations and fears regarding the adoption of the euro 

The September results broadly confirm previous surveys as regards citizens' expectations of 
the euro. 45% (compared to 46% in April 2006) of the respondents continue to fear that the 
introduction of the euro will increase inflation in their country. There is still broad consensus 
in the recently acceded Member States that the euro is an international currency and that there 
are several benefits associated with their country's adoption of the euro. 

Regarding the euro's economic or political effects, respondents generally acknowledge that it 
will have positive effects on public finances (44%, unchanged). Citizens are split (40% agree 
and 39% disagree) when asked whether the euro will favour employment or boost economic 
growth. 

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