Communication from the Commission to the European Parliament, the Council, the European Central Bank the European Economic and Social Committee and the Committee of the Regions - Ninth Report on the practical preparations for the future enlargement of the euro area {SEC(2009)1703}
Date: 2009-12-21
Institutions: European Commission
Subjects: EU Member State, Economic and Monetary Union, euro, euro area, monetary integration, report

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.12.2009 
COM(2009)692 final 

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

Ninth Report on the practical preparations for the future enlargement of the euro area  

{SEC(2009)1703} 

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

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

1. 

INTRODUCTION 

Following  the  latest  enlargement  of  the  euro  area  to  Slovakia  on  1  January  2009,  nine 
European Union Member States are now bound to adopt the euro once they fulfil the criteria 
prescribed by the Treaty on the functioning of the EU.  

Apart from fulfilling the Maastricht criteria, the countries preparing for the introduction of the 
euro  have  to  undertake  extensive  practical  preparations  which  involve  all  sectors  of  the 
countries' economies, the public sector and also the public at large. Some Member States have 
already fixed a national target date for the introduction of the euro, while the others do not yet 
have  a  deadline.  Estonia  has  chosen  the  nearest  national  changeover  target  date,  so  its 
practical preparations for the introduction of the euro are currently the most intensive. 

This report summarizes the progress in the practical preparations for introducing the euro in 
the  Member  States  concerned  and  it  also  provides  an  overview  of  the  citizens'  opinions  on 
some aspects of the euro in the new Member States which are not yet part of the euro area1. 
The  attached  Commission  Staff  Working  Document  provides  details  of  the  practical 
preparations in the form of summary tables.  

2. 

PROGRESS  OF  PREPARATIONS  FOR  THE  INTRODUCTION  OF  THE  EURO  BY  MEMBER 
STATE 

2.1. 

Bulgaria 

Bulgaria has not set a target date for the adoption of the euro. The practical preparations for 
the introduction of the euro have not yet started.  

2.2. 

Czech Republic 

The 'National Plan for the Introduction of the Euro' was adopted on 11 April 2007. The Plan 
does not set a changeover target date. It specifies the general principles of the introduction of 
the  euro  in  the  Czech  Republic,  lists  the  necessary  preparatory  steps  and  sets  a  timeline  for 
their implementation.  

The  two  Progress  Reports  on  the  fulfilment  of  the  'National  Euro  Changeover  Plan'  were 
approved  by  the  Czech  government  on  9  April  2008  and  30  March  2009  respectively.  The 
latest  update  assesses  the  progress  achieved  in  2008  in  the  practical  preparations  for  the 

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Countries which joined the EU in 2004 and 2007 and have not yet adopted the euro: Bulgaria, Czech 
Republic, Estonia, Latvia, Lithuania, Hungary, Poland and Romania.  

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changeover.  In  this  period,  the  National  Coordination  Group  for  Euro  Adoption  worked 
mainly  on  choosing  the  right  methodology  for  the  adaptation  of  the  Czech  Republic's  legal 
texts to the euro. Based on the detailed analysis provided by the National Coordination Group, 
the  Czech  government  decided  to  adopt  an  'indirect'  approach  to  prepare  the  necessary 
adjustments of legal texts to the euro (i.e. the monetary amounts in Czech koruna would be 
converted  into  euro  by  a  general  law  on  the  introduction  of  the  euro,  in  combination  with 
individual  adjustment  of  laws  where  necessary).  In  2008,  the  National  Coordination  Group 
also elaborated the methodology for the preparations in the financial and banking sector and 
drafted recommendations for the dual display of prices.  

The  main  priorities  for  2009  that  are  listed  in  the  second  update  of  the  National  Plan  are 
setting  the  methodology  for  the  preparation  of  the  public  sector  for  the  changeover  and 
preparing the communication strategy. 

The  national  changeover  website 
(www.zavedenieura.cz)  displays  all  euro-related 
government documents and the documents produced by the National Coordination Group for 
Euro  Adoption  and  its  Working  Groups,  and  publishes  invitations  for  various  euro-related 
events (seminars, lectures etc.). It also explains euro-related vocabulary to the general public 
and provides the phone number of a free euro-info line. 

2.3. 

Estonia 

The  Estonian  government  approved  the  first  version  of  the  'Euro  Adoption  Plan'  on 
1 September 2005. The latest (i.e. seventh) update was adopted on 25 June 2009 with a view 
to introducing a target date of 1 January 2011 for the changeover. The practical preparations 
for  the  adoption  of  the  euro  in  Estonia  are  coordinated  by  the  National  Changeover 
Committee,  which  is  chaired  by  the  Secretary  General  of  the  Ministry  of  Finance.  The 
Committee  has  seven  sub-committees,  involving  representatives  of  both  the  public  and  the 
private sectors. 

A  comprehensive  'Act  on  the  Introduction  of  the  Euro'  providing  an  overview  of  the 
legislation to be amended with a view to adopting the euro (comprising more than 200 laws) 
was  prepared  by  the  Ministry  of  Finance  and  is  currently  being  discussed  with  other 
Ministries.  The  Act  provides  for  simple  changes  in  the  Estonian  legislation  (mostly  the 
recalculation  of  monetary  amount  in  kroons  into  the  amounts  in  euro),  while  more 
comprehensive  amendments  of  the  legal  texts  will  be  made  separately.  The  Act  also  lays 
down the procedures for exchanging kroons for euro, removing kroons from circulation and 
establishing the rules for the parallel circulation of the two currencies.  

Frontloading of euro banknotes and coins to credit institutions should start 3-4 months before 
€-day and sub-frontloading of commercial banks'  major clients should start one month before 
€-day.  The  objective  is  to  spread  euro  cash  supplies  over  a  longer  period  of  time  and  thus 
ensure a smooth changeover throughout the country. Credit institutions have already prepared 
the  first  cash  forecasts  for  frontloading  and  sub-frontloading,  which  will  be  updated  in  the 
course  of  further  preparations.  Eesti  Pank  (the  National  Bank  of  Estonia)  plans  to  make 
additional preparations for the storage of exceptionally high amounts of cash in its premises. 
The security plans for frontloading and sub-frontloading are also being elaborated. 

The period of dual circulation of kroon and euro should last for 14 days.  The  design  of the 
Estonian national sides of euro coins was selected by public vote. Since Estonia does not have 
its  own  mint,  it  organised  a  competition  for  the  procurement  of  euro  coins.  Based  on  the 
results of the tender, the Estonian euro coins are to be produced by the Mint of Finland. The 

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Estonian authorities plan to launch an information campaign for the general public aimed at 
collecting hoarded cash before the changeover day. An exchange of kroon cash for euros at 
the conversion rate and without a service fee should be available in commercial banks as from 
one  month  before  €-day  until  six  months  after  €-day.  Thereafter,  Eesti  Pank  will  change 
unlimited  amounts  of  kroons  into  euro  for  an  unlimited  period  of  time.  The  Estonian 
authorities plan to produce euro coins mini-kits for citizens and bigger starter kits for retailers 
in order to supply them with the euro cash needed for the days immediately following €-day. 
The  automatic  teller  machines  (ATMs),  which  are  one  of  the  most  important  channels  for 
distributing cash, should distribute only euro banknotes within 48 hours following €-day. 

According  to  the  'Euro  Adoption  Plan',  the  period  of  dual  display  of  prices  during  which 
citizens  will  have  the  opportunity  to  become  accustomed  to  prices  in  euro  should  last  six 
months  before  and  six  months  after  €-day.  The  Estonian  Consumer  Protection  Board  will 
regularly  monitor  the  prices  of  frequently  purchased  goods  and  services  and  publish  the 
results  in  a  newspaper  with  a  view  to  providing  an  overview  of  the  price  trends  in  the 
changeover period. To set an example to the private sector, the Government will always round 
the euro amounts of taxes, fees, benefits and other amounts in a way which is more favourable 
to citizens. 

The  renewed  'National  Communication  Strategy'  was  endorsed  by  the  National  Changeover 
Committee on 31 August 2009. The national changeover website www.euro.eesti.ee launched 
in  January  2006  is  under  reconstruction  at  present.  The  current  Partnership  Agreement 
between the Commission and Estonia as regards the communication on the introduction of the 
euro  will  expire  in  February  2010,  but  the  Estonian  authorities  have  expressed  a  wish  to 
extend this agreement. 

2.4. 

Latvia 

Although Latvia dropped the reference to a specific target date for the introduction of the euro 
in  the  September  2007  update  of  the  'National  Euro  Changeover  Plan'2,  the  practical 
preparations for the changeover are actively continuing nevertheless. 

On 24 September 2009, the government approved the '12th Report of the Euro Project Steering 
Committee' on the activities carried out between 1 February 2009 and 31 July 2009. During 
this period, the Cash and Payment Systems Working Group dealt with issues relating to the 
membership  of  Latvia  in  the  Single  European  Payments  Area  (SEPA)  with  a  view  to 
developing the first version of the 'National SEPA Implementation Plan'. It also worked on a 
contingency  plan  and  started  preparing  the  inclusion  of  both  issues  in  the  'National  Euro 
Changeover Plan'. 

The  Public  Awareness  and  Communication  Working  Group  started  updating  the  'Euro 
Communication  Strategy'  and  developing  the  corresponding  communication  plan.  The  two 
documents  were  discussed  in  the  course  of  the  twinning  project  with  the  National  Bank  of 
Belgium.  The  national  changeover  web  site  (www.eiro.lv),  launched  in  December  2008, 
remains the main source of information for the general public. The information stand of the 
Bank  of  Latvia  at  the  celebrations  of  the  5th  anniversary  of  Latvia's  accession  to  the  EU 
attracted almost 10 000 visitors.  

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The initial target date was 1 January 2008 

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2.5. 

Lithuania 

The 'National Changeover Plan of Lithuania' was approved by the government in September 
2005  and  updated  in  April  2007.  The  National  Committee  for  the  Coordination  of  the 
Changeover  was  established  in  May  2005.  The  second  version  of  the  Plan  does  not  set  any 
specific target date for the adoption of the euro3.  

The  third  update  of  the  'National  Changeover  Plan',  which  is  currently  under  preparation, 
should  incorporate  the  provisions  of  the  'Commission  Recommendation  of  10  January  2008 
on  measures  to  facilitate  future  changeovers  to  the  euro'4  and  take  into  account  the 
recommendations  of  the  Commission's  'Eighth  report  on  the  practical  preparations  for  the 
future  enlargement  of  the  euro  area'5.  The  third  update  of  the  'National  Changeover  Plan' 
should be adopted by the government by the end of 2009.  

The third update of the 'Public information and communication strategy on the adoption of the 
euro  in  Lithuania',  based  on  the  results  of  the  recent  public  opinion  polls  and  other  latest 
developments,  is  under  preparation.  The  national  changeover  website  provides  up-to-date 
information  on  the  euro.  Under  the  Partnership  Agreement,  the  Commission  and  the 
Lithuanian  authorities  have  further  developed  their  cooperation  and  have  prepared  jointly  a 
number  of  communication  activities,  such  as  a  euro  exhibition  in  the  city  of  Kaunas  in 
November 2009. 

2.6. 

Hungary 

The  first  version  of  the  Hungarian  'National  Changeover  Plan'  adopted  in  July  2008  was 
drawn  up  without  specifying  a  target  date  for  the  actual  changeover.  The  Plan  is  currently 
being  updated  by  seven  sub-committees  of  the  National  Coordination  Committee  for 
Changeover  Preparations.  The  revised  version  of  the  Plan  is  due  to  be  submitted  to  the 
government for approval by the end of 2009. Various public and private sector organisations 
(chambers  of  commerce,  professional  associations,  consumer  protection  organisations, 
employers  and  employees  organisations  etc.)  are  involved  in  the  work  of  the  National 
Coordination Committee. 

Hungary plans to adopt the euro under the 'big-bang' scenario with 1 January as €-day. The 
dual  circulation  period  should  be  less  than  one  month.  The  dual  display  of  prices  period 
should start as soon as possible after the Council decides on the irrevocably fixed exchange 
rate between the euro and forint, and it should last until six months after €-day. The necessary 
amendments  to  the  national  laws  should  be  made  via  an  'umbrella  law'  supplemented  by 
separate  amendments  to  individual  legal  texts.  The  principle  of  the  continuity  of  contracts 
shall be respected.  

A  large  part  of  the  'National  Changeover  Plan'  is  devoted  to  consumer  protection  and 
prevention of undue price increases in the changeover period. Businesses will be offered the 
possibility  to  sign  up  to  a  voluntary  'fair  pricing'  code,  which  should  be  developed  in 

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Lithuania planned to adopt the euro in January 2007. On 16 May 2006 the Commission concluded in its 
Convergence Report that Lithuania did not fulfil all convergence criteria. As a consequence, Lithuania's 
derogation was not lifted and the National Changeover Plan had to be amended. 
2008/78/EC 
COM (2008) 843 

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cooperation  with  chambers  of  commerce,  professional  and  interest  groups  and  consumer 
protection organisations. 

Hungary intends to launch a twinning programme on practical preparations with French and 
Slovak  experts  at  the  beginning  of  2010.  The  communication  campaign  for  the  euro 
introduction  should  provide  clear  and  simple  messages  and  reach  all  sectors  of  population, 
including vulnerable groups. 

2.7. 

Poland 

In May 2007, the National Bank of Poland set up the Bureau for the Integration with the Euro 
Area with a view to preparing the 'Report on Full Membership of Poland in the Economic and 
Monetary Union' (EMU). The Report, published in February 2009, contains an analysis of the 
costs and benefits of Poland's membership in the euro area and provides recommendations for 
future  decisions  as  regards  the  adoption  of  the  euro  in  Poland.  In  December  2008,  the 
National Bank of Poland (NBP) appointed its Plenipotentiary for the Introduction of the Euro, 
who  is  supposed  to  coordinate  the  NBP's  activities  related  to  the  ERM  II  entry  and  the 
introduction of the euro.  

for 

the  practical  preparations 

The  Government  of  Poland  adopted  the  'Roadmap  for  Euro  Adoption'  on  28  October  2008, 
and  in  January  2009  it  appointed  the  Government  Plenipotentiary  for  the  euro,  in  charge  of 
coordination  of 
the  changeover.  The  Government 
Plenipotentiary is responsible for issuing guidelines and recommendations for all institutions 
involved in the changeover process. The  Bureau of  the  Government Plenipotentiary was set 
up  in  the  Ministry  of  Finance  in  March  2009.  Other  institutions,  such  as  the  National 
Coordination  Committee  for  the  Changeover,  the  Coordination  Council,  various  working 
committees and task groups, which are due to participate on the changeover preparations, will 
be set up before the end of 2009. The Coordination Committee and the Coordination Council 
will be chaired by the Government Plenipotentiary and co-chaired by the euro Plenipotentiary 
of the NBP.  

The  'Guidelines  for  the  preparation  of  the  National  Changeover  Plan'  which  are  currently 
under preparation will list the tasks to be accomplished with a view to introducing the euro, 
set a basic timetable and specify the  responsibilities  of the bodies in charge of coordinating 
the preparations.  

Within the framework of its communication strategy on the euro, the National Bank of Poland 
has  been  actively  engaged  in  raising  general  awareness  of  the  euro  since  2001.  The 
'Guidelines  for  the  preparation  of  the  National  Changeover  Plan'  should  also  include 
instructions  for  the  national  communication  strategy  on  the  euro.  The  NBP  representatives 
take part in media debates and various information events for the general public and specific 
target groups. 

2.8. 

Romania 

Romania  has  set  the  year  2015  as  its  target  date  for  the  adoption  of  the  euro.  The  practical 
preparations for changeover have not started yet.  

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2.9. 

Sweden 

In Sweden, preparations were stalled in practice by the negative outcome of the referendum of 
14 September 2003. Sweden has no target date for adopting the euro and there have been no 
noteworthy developments in the practical preparations for the changeover since the previous 
report.  

3. 

STATE OF PUBLIC OPINION IN THE NEW MEMBER STATES 

Since 2004, the European Commission has commissioned 'Eurobarometer' surveys in the new 
Member  States  (NMS)  which  have  not  yet  adopted  the  euro  in  order  to  gauge  citizens' 
attitudes  towards  and  knowledge  about  the  introduction  of  the  euro.  The  autumn  NMS-86 
survey (Flash EB n°280) is the ninth of its kind. The fieldwork for the survey was carried out 
between 21 and 25 September 2009. 

For  the  purposes  of  this  report,  the  results  of  the  latest  Eurobarometer  survey  were  mostly 
compared with the results of the previous survey (in May 2009) conducted in the NMS (Flash 
EB  n°270)  and  occasionally  with  the  spring  2008  results.  It  should  be  noted  that  after  the 
exceptional increase in support for the euro recorded in May 2009 in the context of the 
booming economic and financial crisis, the results generally returned to the 2008 levels.  

3.1. 

Support for the euro 

Between  May  and  September  2009,  the  NMS-8  support  for  the  euro  and  its  introduction 
decreased by 3pp to 49%. In Poland and Hungary it fell by 6pp (to 45%) and 4pp (to 54%) 
respectively,  compared  to  the  11pp  increase  recorded  in  May  2009.  A  very  strong  decrease 
was recorded in the Czech Republic, namely -12pp between May and September 2009 (from 
49% to 37%), while support has increased significantly in Latvia (+11pp, from 37% to 48%) 
and in Bulgaria (+5pp, from 44% to 49%). 

Some 39% of the NMS-8 citizens (as against 36% in May 2009) said that they were unhappy 
about the idea of replacing their national currency with the euro; this result is comparable to 
the one recorded in 2008. 

3.2. 

Familiarity with euro cash 

As in May 2009, and in line with previous surveys, respondents were relatively familiar with 
the design of euro banknotes and coins: 81% (-1pp compared to May 2009) have already seen 
euro banknotes and 76% (-2pp) have seen euro coins. Some 55% (no change) have already 
used banknotes, while 49% (+1pp) have used euro coins. 

3.3. 

Level of information  

Overall, a majority of citizens in the NMS-8 did not consider themselves well informed about 
the euro (59%, +2pp). 

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The Eurobarometer surveys always provide results for the NMS of the time. The latest survey covered 
Poland,  the  Czech  Republic,  Hungary,  Bulgaria,  Romania,  Latvia,  Estonia  and  Lithuania.  Cyprus, 
Malta,  Slovenia  and,  since  2009,  Slovakia  are  not  included  anymore  as  they  have  already  joined  the 
euro area. In total, about 8000 randomly selected citizens have been interviewed. 

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In  most  of  the  countries  surveyed,  the  share  of  citizens  who  considered  themselves  as 
uninformed  about  the  euro  has  increased  since  May  2009.  This  tendency  was  the  most 
pronounced in Romania, where, in September 2009, 6 out of 10 respondents said they were 
not very well or not at all well informed about the euro, compared to 52% who felt that way in 
May 2009 (+8 pp). The level of knowledge declared by respondents increased in Latvia (+7pp 
in the category 'well informed') and in Bulgaria (+6pp). 

3.4. 

Speed of the introduction of the euro 

Compared  to  May  2009,  the  NMS-8  citizens  showed  growing  hesitation  about  the 
introduction  of  the  euro.  Fewer  respondents  wanted  the  euro  to  be  introduced  as  soon  as 
possible (25%, -3pp) and more said that they wanted to have their currency replaced as late as 
possible (33%, +4pp). As a consequence, the support for the euro changeover is now back to 
the level of May 2008. 

The  Czech  Republic,  Hungary  and  Poland  saw  increases  in  the  number  of  citizens  who 
wanted  the  changeover  to  happen  as  late  as  possible  (+11,  +6,  +2pp,  respectively).  On  the 
other  hand,  slightly  more  Romanians  (+3pp),  Latvians  (+1pp)  and  Bulgarians  (+1pp)  now 
wanted accession to the euro area to happen as soon as possible. The Czech Republic had the 
highest  share  of  respondents  who  wanted  to  adopt  the  euro  as  late  as  possible  (+11pp  to 
47%), while Romanians were the most supportive of a rapid introduction of the euro (+3pp to 
43%). 

3.5. 

Impact of the euro on prices 

Some  68%  of  the  NMS-8  citizens  (+3pp)  feared  that  the  euro  would  cause  price  increases, 
while 45% thought that one of the euro’s main advantages would be low inflation rates. The 
proportion  of  citizens  who  believed  in  the  long-term  stabilising  effect  of  the  euro  on  prices 
had decreased sharply since the previous survey (-10pp). 

Compared  to  May  2009,  interviewees  in  almost  all  NMS-8  were  more  sceptical  about  the 
euro’s  impact  on  prices.  The  increase  ranged  from  +2pp  in  Poland  (to  78%)  to  +9pp  in  the 
Czech Republic (to 75%). The only exceptions were Latvia and Hungary, where the shares of 
citizens expecting price rises decreased by -1pp (to 59%) and -5pp (to 66%) respectively.  

3.6. 

Positive practical consequences of the changeover to the euro 

An  overwhelming  majority  of  the  NMS-8  citizens  agreed  with  several  positive  statements 
concerning the euro's practical effects: e.g. “it will be more convenient for those who travel to 
other EU countries” (92%, +2pp); it will make it easier to shop in other countries that use the 
euro” (87%, no change), etc. However, as in the previous surveys, the share of citizens who 
believe in the euro's ability to protect their country from crises remained low (41%, -3pp).  

4. 

PROTECTION OF THE EURO AGAINST COUNTERFEITING 

Concerning the protection of the euro, all countries have established the national authorities as 
required by article 2 of the Regulation 2001/1338/EC; their representatives participate in the 
meetings of the expert groups and they have received appropriate training in the field of the 
protection of the euro against counterfeiting. 

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