Brussels, 03/01/2011 (Agence Europe) - On 1 January 2011, Estonia adopted the euro as its official currency, thus becoming the 17th member state and the first former Soviet Union country to adopt the EU's single currency. This brings to over 330 million the number of European citizens who share the single currency, a number which, despite the threats of crisis which loomed over the euro throughout 2010, will undoubtedly increase. Two other dates for adoption of the euro are already known (2014 for Latvia and 2015 for Romania), while other countries prefer not to give a date until they have a reasonable degree of certainty of getting there, according to a statement made by the spokesman for the European Commission on Monday 3 January.
José Manuel Barroso, President of the European Commission, said: “I congratulate Estonia and warmly welcome all its citizens to the euro area. The euro is there to promote everyday life. It makes travel elsewhere in the euro area easier and cheaper for Estonian citizens, with no need to change currencies and pay commission. Estonia's entry means that over 330 million Europeans now carry euro notes and coins in their pockets. It is a strong signal of the attraction and stability that the euro brings to member states of the European Union”.
The European commissioner for economic and monetary affairs, Olli Rehn, said for his part: “I am very happy to welcome Estonia into the euro area. This is a great achievement and a fair reward for a country that has been firmly committed to maintaining sound fiscal policies. The single currency will provide a stable framework for the Estonian economy, which together with sound fiscal and macro-economic policies will create the basis for economic prosperity”.
The euro has begun quite smoothly. Commercial banks had received euro banknotes and coins in advance from the Estonian Central Bank and had in turn supplied euro cash to shops and other businesses under a specific contract, so that they could handle payments and return change from the very first day of changeover. On Monday morning, one in four consumers were using the euro for their shopping, 9 out of 10 were receiving change in euro, and nearly one citizen out of three had only euro in their wallets.
Both currencies will be legal tender during a two-week period which in principle will end on 15 January 2011, in order to allow Estonian kroons to be gradually phased out after this currency's short 20-year lifespan.
Estonian citizens have been able to purchase 700,000 mini-kits in euro coins (with the Estonian national side) to acquaint themselves in advance with their new currency. Since 1 December 2010, all bank branches with cash services have been exchanging kroon cash holdings free of charge at the official conversion rate (1 euro = 15.6466 EEK). After 30 June 2011, this service will continue to be provided at a more limited branch network until the end of December 2011. The Estonian Central Bank will exchange kroons for euro during an unlimited period.
In order to make transition to euro easier, commercial banks have extended opening hours for the changeover and have foreseen additional staff. Most bank branches were open on 1 and 2 January to offer cash services, and nearly all ATMs (cash dispensers) were dispensing euro banknotes by midnight 1st January.
In order to make it easier for consumers to acquaint themselves with the new scale of monetary values, prices have been displayed both in kroons and euro as of 1 July 2010, and this will continue until 30 June 2011. The implementation of this rule is supervised by the Estonian Consumer Protection Board, which publishes the names of enterprises that do not implement the rule correctly, and which may also impose fines. In order to address public concerns about possible price increases and abusive price practices in the changeover period, a “Fair Pricing Agreement” was launched in August 2010. Businesses that sign up commit not to increase their prices without justification during the changeover to the euro and to respect the changeover rules. Over 500 entities have joined the agreement, covering around 2,500 sales locations.
The preparations for the changeover included a comprehensive communication campaign amongst all residents of Estonia to heighten awareness about the practical aspects of adopting the euro. The European Commission and the European Central Bank contributed considerably to these efforts. The mass media campaigns through television and radio channels, the dissemination of publications and promotional material, seminars, exhibitions and conferences, etc, have contributed to the good knowledge of euro matters in Estonia. (Com-Gp/transl.jl)