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 - Sixth Report on the practical preparations for the future enlargement of the euro area {SEC(2007) 1574}
Date: 2007-11-27
Institutions: European Commission
Subjects: Cyprus, Economic and Monetary Union, Malta, euro, euro area, monetary integration, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.11.2007 
COM(2007) 756 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 

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

{SEC(2007) 1574} 

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1. 

INTRODUCTION 

Following the Council decisions of 10 July 2007 that Cyprus and Malta fulfil the necessary 
conditions for the adoption of the euro on 1 January 2008,1 the practical preparations for the 
introduction of the euro are currently being completed in both countries. This report addresses 
these final preparations, in particular the introduction of euro cash into the economy, the state 
of the private sector's preparations as well as the state of public opinion on the euro in Cyprus 
in Malta.  

The  attached  Commission  staff  working  paper  provides  for  more  technical  details  on  the 
preparations in both countries and in the other Member States concerned.  

The report follows five reports on the state of practical preparations for the future enlargement 
of the euro area, which were issued between November 2004 and July 2007.2  

2. 

STATE OF PREPARATIONS  

2.1. 

Cyprus 

2.1.1.  How  will  euro  cash  be  introduced  into  the  Cypriot  economy  and  how  will  Cyprus 

pound cash be withdrawn?  

The introduction of the euro in Cyprus implies that a population of about 775 000 will take 
part in the changeover from the Cyprus pound to the euro, be it as individuals or within the 
enterprise  or  public  body  in  which  they  work.  The  responsibility  for the  introduction  of  the 
euro in physical form and for the withdrawal of the Cyprus pound from circulation lies with 
the Central Bank of Cyprus (CBC).  

Euro notes and coins needed 

In order to replace the currency in circulation in Cyprus pound with euro cash, 60.7 million 
euro banknotes (worth € 1 190 million) and 395 million euro coins (worth € 100.26 million) 
are necessary, according to the estimates of the CBC.  

In line with the European Central Bank's decision that new euro-area entrants can borrow the 
necessary  volumes  of  euro  banknotes  from  the  Eurosystem  and  pay  them  back  after  the 
changeover  with  euro  banknotes  produced  by  their  own  supply  arrangements,  the  CBC 
received the euro banknotes from the Bank of Greece in the course of October.  

The  Cypriot  euro  coins  were  produced  by  the  Mint  of  Finland,  following  a  public  call  for 
tenders. Mass production started once the Council had decided, on 10 July 2007, that Cyprus 
can  adopt  the  euro  on  1  January  2008.  About  60%  of  the  coins  arrived  by  mid-October  via 
container  shipments,  while  the  remaining  40%  are  expected  to  be  delivered  by  the  end  of 
November.  

Frontloading and sub-frontloading 

With  a  view  to  preparing  a  smooth  cash  changeover,  the  CBC  implements  a  frontloading 
operation under which it supplies commercial banks with euro banknotes and coins before €-

1 

2 

Council Decision of 10 July 2007 in accordance with Article 122(2) of the Treaty on the adoption by 
Cyprus  of  the  single  currency  on  1  January  2008,  OJ  L  186,  18.7.2007,  p.  29;  Council  Decision  of 
10 July  2007  in  accordance  with  Article  122(2)  of  the  Treaty  on  the  adoption  by  Malta  of  the  single 
currency on 1 January 2008, OJ L 186, 18.7.2007, p. 32.  
COM(2004) 748 of 10 November 2004; COM(2005) 545 of 4 November 2005; COM(2006) 322 of 22 
June 2006; COM(2006) 671 of 10 November 2006; COM(2007)434 of 16 July 2007.  

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day.3  Frontloading  started  on  22  October  for  euro  coins,  and  on  19  November  for  euro 
banknotes.  The  CBC  estimates  that  approximately  80%  of  the  value  of  the  euro  banknotes 
which  will  be  introduced  into  the  Cypriot  economy  (i.e.  48.4  million  banknotes,  worth 
approximately € 950 million) will be supplied to the banking sector before €-day, as well as 
64% of the value of euro coins (i.e. 251.2 million coins, worth approximately € 64 million). 
The  frontloading  operation  involves  all  approximately  900  bank  branches  in  Cyprus  (each 
serving about 860 inhabitants on average).  

In  a  next  step,  commercial  banks  have  to  ensure  that  enterprises  involved  in  cash-related 
operations, and retailers in particular, receive euro cash before €-day (sub-frontloading) and 
are able to give change in euro only as from the changeover date. This contributes to reducing 
to a minimum the period during which euro cash and national cash are used in parallel. The 
details  of  the  sub-frontloading  are  laid  down  in  agreements  between  the  banks  and  their 
clients, defining the timing of deliveries, the debiting date, the necessary insurance cover and 
collateral requirements. Although the CBC and commercial banks are active in explaining the 
need  for  sub-frontloading  to  all  enterprises  dealing  with  cash,  the  first  euro-cash  orders  by 
businesses  were  significantly  below  expectations.  Additional  measures  to  encourage 
enterprises are being taken, already showing positive results. On 31 December, which is to be 
declared a special bank holiday, banks will sub-frontload SMEs with small amounts of euro 
cash. The efforts to ensure an appropriate level of sub-frontloading should be continued.  

As part of the sub-frontloading operation, 40 000 pre-packed euro coin kits (starter-kits) for 
businesses  (worth  €  172  each)  as  well  as  250  000  mini-kits  for  the  general  public  (worth  € 
17.09 each) will be on offer as from 3 December 2007. Simple packaging of the kits has been 
chosen to ensure that the coins will be used for payments and not retained as collector items.  

In addition, since 1 November, some banks exchange Cyprus pounds into euro banknotes for 
their  customers  at  the  conversion  rate  and  without  exchange  charges,  so  that  the  public  can 
prepare for payments in euro as from €-day. 

Introduction of cash into the economy as from 1 January 2008 

Most of the euro banknotes will be channelled into circulation through ATMs. Approximately 
550  ATMs  are  operated  by  credit  institutions  in  Cyprus,  virtually  all  within  the  banks' 
premises which allows for their immediate refilling. Some large banks have announced that 
they implement the conversion of their ATMs in the evening of 31 December. At least 70 % 
of  the  ATMs  will  be  converted  to  dispensing  exclusively  euro  banknotes  at  the  latest  by 
1.00 a.m.  on  €-day,  while  the  remaining  30%  will  be  converted  by  noon  on  the  same  day. 
Under  normal  circumstances,  all  ATMs  together  serve  for  approximately  170  000 
withdrawals with a total value of around € 22 million per week (on average, data from 2006). 

During the first weeks after €-day, ATMs will dispense € 10 and 20 banknotes only, with a 
view to reducing the amount of change which retailers have to give in cash transactions.4 For 
the  same  reason,  banks  have  committed  to  distribute  only  low  denomination  banknotes  at 
their  counters  in  a  first  period  after  €-day  (primarily  €  5,  10  and  20,  maximum  €  50 
banknotes).  

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4 

€-day is the day on which euro banknotes and coins are put into circulation (1 January 2008 for Cyprus 
and Malta).  
The cash needs of retailers in the first days and weeks after the changeover will be significantly higher 
than under normal circumstances, since national cash received from customers can no longer be used 
for giving change and since customers will use national cash for payment purposes more than usual to 
get  rid  of  it  without  having  to  exchange  it  in  banks.  If  customers  who  pay  in  euro  already  use  small 
denomination euro banknotes or pay the exact amount, retailers will need less euro change. 

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The retail sector will be the main channel for introducing euro coins into the economy, given 
that coin withdrawals at bank counters are not common. In order to avoid any 'recycling' of 
national cash, the retail sector is expected to give change in euro only as from €-day.  

Return of national cash 

As regards the return of national cash, the CBC intensified its campaign encouraging citizens 
to use hoarded national cash or to deposit it with banks in October 2007. The CBC estimates 
that by the end of this year 80.9 million national banknotes and 472.7 million national coins 
will be in circulation. It is expected that most of these banknotes and about half of the coins 
will sooner or later be returned to the CBC.  

On 1 January 2008, which is a bank holiday, a number of centrally located bank branches will 
be open in every district to facilitate the exchange of Cyprus pounds into euro.  

Banks will exchange Cyprus pound banknotes and coins into euro free of charge until 30 June 
2008, for amounts up to CYP 1 000 per customer and per transaction in the case of banknotes, 
and up to CYP 50 in the case of coins. The CBC continues to exchanges national banknotes 
until ten years after €-day, and coins until two years after this date, free of charge. 

Cheques; POS terminals 

About 25 million cheques are being used per year in Cyprus. Since cheques denominated in 
Cyprus  pound  and  dated  after  31  December  2007  will  not  be  valid,  banks  have  started 
supplying their customers with cheque books in euro, which are being used already now.  

The  approximately  19  000  point-of-sale  terminals  (POS)  operated  in  Cyprus  pound  will  be 
switched  to  the  euro  on  1  January  2008.  Those  POS  which  are,  for  example,  working  at 
restaurants and hotels and should keep accepting card payments through New Year's eve, will 
change over immediately at 00:01 a.m. on €-day.  

Protection of the euro against counterfeiting 

The  necessary  framework  for  the  protection  of  the  euro  against  counterfeiting  has  been 
established.5  Cypriot  experts  have  also  participated in  relevant  training  actions and working 
groups of the Commission, the European Central Bank and Europol. 

2.1.2.  How well are enterprises prepared for the changeover?  

In September 2007, a Eurobarometer survey among enterprises was conducted in Cyprus on 
behalf of the European Commission in cooperation with the Cypriot authorities, following a 
similar survey carried out in January 2007.6 The results indicate that the Cypriot enterprises 
are  well  prepared  for  the  changeover  and  that  they  did  not  experience  any  significant 
problems in the course of their preparations. By mid-September 2007, virtually all enterprises 
(97%) had started preparing for the changeover; most of them had done so as from April 2007 
(88%).  

More than 88% of all enterprises dealing with cash in their customer relations indicated that 
they expect to be supplied with euro banknotes before €-day by their banks. Four out of five 
enterprises (80%) expect their IT systems (e.g. accounting, invoicing, payroll systems) to be 
ready for switching to the euro immediately on 1 January 2008.  

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6 

See Fourth report, page 8 
(http://ec.europa.eu/economy_finance/euro/transition/transition_main_en.htm). 
See  Flash  Eurobarometers  200  and  218.  All  Eurobarometer  surveys  are  available  at 
http://ec.europa.eu/public_opinion/euro_en.htm. 

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More than 9 out of 10 enterprises are aware that prices have to be displayed both in euro and 
in  Cyprus  pound  since  September  2007,  and  the  large  majority  of  enterprises  do  not 
experience  any  particular  difficulties  in  fulfilling  this  obligation.  Concerning  enterprises' 
pricing policy, the results of the September survey indicate a positive trend. When adjusting 
prices to the euro, e.g. psychological prices such as CYP 5.99 which due to the application of 
the  conversion  rules  would  result  in  un-rounded  amounts  in  euro,  17%  of  the  businesses 
mentioned  that  they  will  adjust  their  prices  mostly  downwards  (3%  in  January),  while  only 
3% will mostly adjust upwards (16% in January). Moreover, the percentage of those who will 
exactly apply the conversion rules without further adjustments increased from 28% in January 
to 51% in September.  

2.1.3.  What measures are being taken to avoid the perception of price increases around the 

changeover?  

According to the latest Eurobarometer on public opinion on the euro, still 74% of respondents 
in  Cyprus  fear  prices  increases  on  the  occasion  of  the  changeover  to  the  euro.7  This 
constitutes  only  a  slight  change  compared  to  the  situation  in  April  2007,  when  78%  shared 
this concern.8  

Over the last months, the Cypriot authorities have further strengthened their measures with a 
view  to  contributing  to  price  stability  and  enhancing  consumer  confidence  around  the 
changeover.  The  dual  display  of  prices  in  Cyprus  pound  and  euro  became  mandatory  for 
enterprises  on  1 September  2007.  Its  implementation  is  carefully  monitored  by  five  Euro 
Observatories  established  throughout  the  country  which  send  more  than  100  inspectors  to 
each retail outlet on a regular basis. The Euro Observatories consist of ten members, including 
the district commissioner, representatives of government, consumer associations, trade unions 
and  the  business  sector.  As  from  the  start,  about  80%  of  all  retailers  correctly  applied  dual 
displays according to the legal requirements established by national law, while the remaining 
enterprises  were  given  assistance  for  correct  dual  displays.  The  general  feedback  on  the 
mandatory dual display is positive, and it is seen as contributing to greater price transparency 
by establishing the habit of displaying prices more widely.  

About 7 130 enterprises, including in particular larger retailers and banks, subscribed to the 
Fair Pricing Code launched by the government in July 2007. They are allowed to display the 
logo  of  the  Code  in  their  shops  and  branches,  provided  they  comply  with  the  Code  under 
which they committed to carry out the changeover fairly and not to seek advantage from it. 
The Ministry of Finance publishes the list of participating businesses on Cyprus' euro website 
and in the official journal. The Code is valid until 10 July 2008. 

The Ministries of Finance and of Commerce and Industry, in cooperation with the Statistical 
Services and the Pan-Cyprian Consumers Association, carry out systematic price monitoring 
since September 2007. The Statistical Services notably monitor price developments related to 
a  basket  of  certain  products  which,  according  to  past  experience  in  other  countries,  may  be 
subject  to  unjustified  price  increases.  With  a  view  to  informing  consumers,  lists  of  retail 
outlets offering the least expensive products are being published once a month.  

In  addition,  the  Cyprus'  Consumer  Association  carries  out  and  publishes  market  surveys, 
analysing the price developments of about 80 000 items in 11 000 retail outlets. First results 
from  the  period  of  July  to  September  2007  indicate  that  the  prices  of  about  80%  of  the 
products  remained  stable  or  decreased,  while  price  increases  of  different  degrees  were 

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Flash Eurobarometer 214, September 2007. 
Flash Eurobarometer 207.  

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observed  for  the  remaining  20%  of  items.  The  Association  intends  to  publish  cases  of 
significant price increases in the media, along with the reasons for the price increase given by 
the retailer concerned. 

2.1.4.  How well are citizens prepared for the changeover?  

Cyprus has significantly increased its communication efforts on the euro in the last months. 
The Ministry of Finance and the CBC are coordinating closely with business and consumers 
organisations as well as the European Commission and the European Central Bank.  

The  general  public  has  been  addressed  via  mass  media  campaigns,  partly  funded  by  the 
European Commission. The key messages concern the fixing of the conversion rate, the Fair 
Pricing Code, the dual display of prices, de-hoarding of national cash and enhanced consumer 
awareness.  The  campaigns  were  conducted  in  all  media,  notably  TV  (approximately  2  500 
inserts), radio (approximately 6 500 inserts) and print (approximately 200 inserts).  

Promotional material concerning the Fair Pricing Code and the dual display of prices (posters, 
leaflets,  etc.)  was  distributed  to  all  businesses,  presentations  were  given  in  schools  and  to 
social workers and a school competition was launched. The national euro website is regularly 
updated and the press is informed on a constant basis by the authorities. Specific target groups 
(SMEs, the vulnerable, women, youth) are reached via posters and leaflets and a 'talking card' 
for  the  blind,  and  with  the  help  of  the  Euro  Observatories  and  four  'euro-busses'  touring 
around the island. The free telephone line receives approximately 500 calls per week.  

In  August,  the  Cypriot  authorities  modified  the  communication  strategy  and  asked  the 
communication agency to change the content of the mass media campaigns so as to respond 
more adequately to the needs of target groups who remain sceptical about the benefits of the 
euro. 

The latest Eurobarometer survey confirms that the support for the euro is increasing in Cyprus 
albeit from a low level: some 44% of the respondents stated that they are personally very or 
rather happy that the euro will replace their currency (up from 40% in April 2007 and 32% in 
September 2006).  

It appears fair to assume that the ongoing communication campaign in Cyprus is instrumental 
to increase the support for  the euro. Other  factors  confirm this: 67% of the respondents felt 
quite or very well informed which is a huge leap forward from previously 47% (April 2007) 
and 39% (September 2006). Similarly, the familiarity with some key features of the euro and 
EMU has further improved. 

2.1.5.  Conclusion 

In the last few months Cyprus has achieved considerable progress on the practical changeover 
preparations and seems generally well prepared for the introduction of the euro. With a view 
to  enabling  businesses,  in  particular  retailers,  to  give  change  exclusively  in  euro  as  from  €-
day, the Central Bank and banks should continue their efforts to convince businesses of the 
need  for  being  sub-frontloaded.  The  communication  activities  on  the  euro  should  be  further 
strengthened with a view to increasing the support for the euro. 

2.2.  Malta 

2.2.1.  How  will  euro  cash  be  introduced  into  the  Maltese  economy  and  how  will  Maltese 

lira cash be withdrawn?  

In Malta, a population of about 400 000 will change over from the Maltese lira to the euro. 
According  to  estimates  of  the  Central  Bank  of  Malta  (CBM),  41.51  million  euro  banknotes 

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(worth  €  799  million)  and  140  million  euro  coins  (worth  €  39.29  million)  are  necessary  to 
replace the currency in circulation in Maltese lira.  

The  CBM  borrowed  the  necessary  volumes  of  euro  banknotes  from  the  Banca  d'Italia.  The 
Maltese euro coins were produced by the Monnaie de Paris and arrived in Malta between mid-
September and end of October 2007.  

Frontloading of euro cash to commercial banks started on 15 September. In total, about 92.5% 
of  the  banknotes  which  will  be  introduced  into  the  Maltese  economy  (38.43  million 
banknotes, worth € 749 million) and about 71% of the euro coins (99.12 million coins, worth 
€ 27.81 million) will be supplied to the 107 bank branches throughout the country before €-
day.  

According to estimates of the CBM, 4.5% of the banknotes to be introduced and 19.5% of the 
coins  will  be  supplied  to  businesses  before  €-day  by  their  banks  under  sub-frontloading 
agreements  as  from  1  December  2007.  These  estimates  include  33  000  starter-kits  for 
businesses (worth € 131 each) and 330 000 mini kits for citizens (worth € 11.65) which will 
be available at banks as from 1 and 10 December 2007, respectively.  

Around 60% of all ATMs (154 in total) will dispense low denomination (mainly € 10 and 20) 
euro  banknotes  as  from  1 January  2008  at  0:00.  By  noon  on  the  same  day  between  85  and 
90%  of  ATMs  will  issue  euro  banknotes,  while  the  remaining  ATMs  will  be  converted  by 
16:00. On average, all ATMs serve for 306 000 withdrawals per week, with an average total 
value of € 26.55 million.  

Considering  that  Malta  has  a  particularly  high  amount  of  cash  in  circulation,  the  CBM 
launched a TV and press advertising campaign in September 2007, encouraging the public to 
deposit  excess  cash  with  banks,  with  a  view  to  reducing  the  volume  of  national  cash  to  be 
exchanged after €-day. The national cash in circulation to be returned to the CBM as from 1 
January 2008 is estimated to amount to approximately 37 million banknotes and 128 million 
coins.  

As from 1 December, banks are committed to exchange Maltese lira banknotes and coins into 
euro free of charge at the conversion rate, subject to availability of the euro banknotes. This is 
mainly  intended  to  enable  small  businesses  to  acquire  some  euro  banknotes  ahead  of  the 
changeover. The general public will be reminded that the euro will only become legal tender 
on  1  January  2008.  From  that  date  until  31  March  2008,  commercial  banks  will  exchange 
national cash into euro free of charge at the conversion rate for their clients and up to MTL 
250 (€ 582.34) for non-customers. The CBM will continue to exchange Maltese lira coins and 
notes until 1 February 2010 and 1 February 2018, respectively.  

Banks will be open on 31 December and closed on 1 January as usual. On 2 and 3 January, 
they  will  only  handle  over-the-counter  business  with  the  public  for  cash  deposits,  foreign 
currency  exchange  and  exchanges  into  euro.  On  4  and  5  January  the  normal  banking  hours 
will be extended until 16:00. During the extended hours only cash deposits, foreign currency 
exchange and exchanges into euro will be handled. 

About  12  million  cheques  are  being  used  in  Malta  per  year.  Cheques  issued  in  Maltese  lira 
dated before 1 January 2008 will be accepted for payment for the normal validity period of six 
months from the date of issue, unless a shorter period is indicated. Cheques drawn on MTL 
denominated  accounts  and  issued  in  euro  before  1  January  2008  will  be  honoured  by 
commercial banks if presented after that date.  

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The  necessary  framework  for  the  protection  of  the  euro  against  counterfeiting  has  been 
established.9 Maltese experts have also participated in relevant training actions and working 
groups of the Commission, the European Central Bank and Europol. 

2.2.2.  How well are enterprises prepared for the changeover?  

In the second half of August and early September, the National Euro Changeover Committee 
(NECC) conducted, in cooperation with the National Statistics Office, a survey on the state of 
euro  preparations  in  the  Maltese  business  sector.10  Virtually  all  of  the  908  enterprises 
(representing  a  population  of  16  500)  participating  in  the  survey  (98%)  knew  that  the  euro 
will  be  introduced  on  1  January  2008,  and  a  majority  of  56%  was  aware  that  the  dual 
circulation period during which they may still accept payments in Maltese lira is one month. 
Nine  out  of  ten  enterprises  were  aware  that  change  should  be  given  exclusively  in  euro  as 
from €-day.  

The  majority  of  enterprises  (55%)  expected  to  receive  euro  cash  from  their  banks  before 
1 January  2008.  Among  the  33%  which  did  not  plan  to  be  sub-frontloaded,  more  than  one 
third (37%) either has euro cash already or will obtain it from ATMs or at banks in January, 
while one fourth (26%) does not transact in cash.  

Concerning  the  IT  systems  which  need  to  be  modified  with  a  view  to  the  changeover, 
enterprises  mentioned  most  often  systems  in  the  logistics  area,  followed  by  sales  and 
marketing  applications,  accounting  and  human  resources  systems.  About  one  third  of  the 
enterprises (31%) had by that time upgraded their accounting systems with a view to the euro. 
This  figure  appears  rather  low,  while  it  needs  to  be  considered  that  a  considerable  share  of 
Maltese  enterprises  are  small  businesses  (72%  of  all  businesses  are  self-employed  persons 
with no employees, where, generally, IT accounting systems are not used).  

The  NECC  embarked  upon  an  intensive  business  training  programme,  whereby  70  euro 
assistants are directly training the SME sector, whilst the NECC adopted a ‘train the trainer’ 
approach  enabling  larger  businesses  to  cascade  euro  changeover  training  within  their 
organisations.  

2.2.3.  What measures are being taken to avoid the perception of price increases around the 

changeover?  

Still about two-thirds of the Maltese population (65%) fear price increases on the occasion of 
the changeover to the euro, and 76% even expect price abuses. In order to address these fears, 
the  NECC  continues  to  implement  a  comprehensive  set  of  measures.11  The  dual  display  of 
prices in Maltese lira and in euro became mandatory on 11 July 2007, and will continue to be 
mandatory until 30 June 2008. The FAIR initiative, under which more than 6 500 businesses 
(representing  about  80%  of  the  retail  outlets)  have  committed  not  to  increase  the  prices  of 
goods  and  services  "for  the  reason  that  a  monetary  changeover  is  taking  place",  was 
complemented by Price Stability Agreements which the NECC concluded with a number of 
importers,  distributors  and  manufacturers  in  August  and  September  2007.  Under  these 
agreements  the  businesses  promised  to  keep  the  prices  for  a  wide  range  of  products  and 
services  stable  during  a  certain  time  before  and  after  the  changeover.  The  price  monitoring 
currently 
to  assess  price 
developments and to inform consumers, and should continue throughout 2008 when the FAIR 
initiative and the dual display of prices will come to an end. 

the  Maltese  authorities  remains  crucial 

implemented  by 

9 
10 
11 

See Fourth report, page 11.  
See http://www.euro.gov.mt/page.aspx?ID=590.  
See Fifth report, page 7 (http://ec.europa.eu/economy_finance/euro/transition/transition_main_en.htm).  

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2.2.4.  How well are citizens prepared for the changeover? 

The  NECC,  responsible  for  implementing  the  communication  strategy  towards  the 
changeover  in  Malta,  launched,  after  a  brief  pause  during  August  2007,  an  intensive  and 
comprehensive last phase campaign on the 'immediacy' of the euro introduction (e.g. when to 
deposit Maltese lira, how to use the euro converter). Part of this campaign is being funded by 
the European Commission.  

The mass media campaign, running in newspapers, magazines, radio, TV, on bus shelters and 
billboards  is  supported  by  specific  actions  towards  selected  target  groups:  in  parishes  a 
'eurocentre'  was  set  up  to  answer  questions  of  the  village  people,  a  kit  was  developed  for 
trainers of vulnerable groups and for the business sector and a school competition on the euro 
has been launched for secondary schools. Extra actions include three large countdown clocks 
placed in strategic places in Malta and a 1.5 minute "euro-related news" in the daily evening 
news bulletin on the leading TV stations in Malta. In October, Malta organised, in cooperation 
with  the  European  Commission  and  the  European  Central  Bank,  a  conference  on  EMU  and 
the euro.  

The latest Eurobarometer survey of September 2007 shows very encouraging results for Malta 
confirming the success of the intensive and comprehensive communication campaign by the 
authorities. The trend remains positive and the support for the euro has reached a good level. 
56%  (compared  to  54%  in  April  2007  and  48%  in  September  2006)  stated  that  they  are 
personally very or rather happy that the euro will replace their currency which is the second 
highest value in the countries concerned. However, the level of support remains substantially 
lower than in Slovenia at the same juncture. 

The impact  of the ongoing  communication campaign in Malta is visible also in other areas. 
The  good  level  of  self-perceived  information  measured  in  April  this  year  has  improved 
further,  although  only  slightly:  74%  of  the  respondents  felt  quite  or  very  well  informed 
compared to previously 71%. 99% of the respondents know that the euro will be introduced in 
2008. The familiarity with some key features of the euro and EMU has slightly improved. 

2.2.5.  Conclusion 

In  the  last  few  months,  Malta  has  further  refined  and  completed  its  practical  changeover 
preparations and seems well prepared for the introduction of the euro. With a view to enabling 
businesses  to  give  change  exclusively  in  euro  as  from  €-day,  particular  attention  should  be 
paid to ensuring an appropriate level of sub-frontloading. The comprehensive communication 
activities on the euro should be continued so as to further increase the support for the euro.  

2.3. 

Other Member States 

The  Commission  staff  working  paper  attached  to  this  report  provides  an  overview  of  the 
practical preparations in the other Member States which yet have to adopt the euro.  

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