Brussels, 12/07/2000 (Agence Europe) - This Wednesday the European Commission adopted a Communication concerning the introduction of euro notes and coins on 1 January 2002 and the significant effort still to be made in order to successfully meet this deadline. During a press conference, Commissioner Pedro Solbes drew attention to the following elements:
- Abandon the national currency units to the benefit of the Euro. On the basis of an assessment made between May and July, Commissioner Solbes noted that companies were improving their preparations for the introduction of the euro (in France, he noted, 1,000 companies are converting to the euro each month), but that the situation nevertheless remains unsatisfactory: "It will take 200 years at this rate". The Communication therefore notes an "inadequate level of preparation" in so far as companies are "preparing themselves rather slowly to the change", not being aware that all the invoices and the accounts in general will have to be established in euros from 1 January 2002 (with exception for the Netherlands).
As far as the citizens are concerned, Mr Solbes noted that the euro remained "little used" and that "little attention is given to simultaneous use of euros and national currency" (he did note, however, that Belgian and French banks are to give their customers' accounts in euros in July 2001). He also noted with vexation that the public administrations, mainly at local level, do not sufficiently play the role of instruction in the single currency for citizens. He noted that "some practical experience should be extended throughout the Union".
- Preparation for introduction of euro notes and coins. Considering that the transition to the euro should be carried out "effectively and rapidly", Commissioner Solbes spoke of the following aspects:
- Manufacture of notes and coins: 50 billion coins are to be minted by 1 January 2002 and 39% had already been minted by end May. Over 14 billion notes will be printed by the same deadline in twelve printers of the euro zone, including one in Greece, under the direct control of the ECB and National Banks. There are no less than 120 models of coins to be minted because of the national sides.
- Quality of coins: This will be greater than that of national coins and will be controlled by the ECB.
- Adaptation for vending machines: six testing centres (two in Germany, one in Spain, one in Finland, France and the Netherlands) have been set up since the summer of 1999 and the Member States have been authorised to lend samples so that equipments manufacturers may carry out their tests.
- Fight against counterfeiting. Mr Solbes recalled that the mandate of Europol had been extended by the JHA Council in April 1999 and that this Council had also, in May 2000, adopted a framework decision aimed at strengthening protection against counterfeiting by using penal sanctions and others. In the wake of this, the Commission will soon present a draft regulation aimed at organising information flows on counterfeiting and those guilty of this kind of offence.
- Exchange of notes and coins. Mr Solbes recalled that this procedure would be broken down into three stages: a) pre-supply before 1 January 2002. All Member States plan to supply the groups most directly concerned with euros in advance (banks, traders, fund carriers, manufacturers and operators of vending machines) during the last four months of 2001. For the general public, advance supplies of euros will come about during the second half of December 2001 (except for Greece, Ireland and Italy which do not provide for this). b) Dual circulation period (euro/national currency). The main part of the changeover should be completed by the end of the first two weeks of 2002. Banks should exchange the national currency for the euros for their customers for up to 500 euros ("This is the idea we are working on", said Mr Solbes). One question still to be resolved concerns persons who do not have a bank account. National notes and coins will lose their legal value end February, except Germany (1 January), the Netherlands (28 January) and Ireland (9 February). c) Later phase of the dual circulation period. In certain Member States, the exchange of the former national tender may still be carried out by the banks. The question of cash exchange continues to raise some questions to be settled. The Commission will follow-up the situation and, every two months, provide "information on best practices" as well as recommendations.
In response to questions, Commissioner Solbes noted that the problem encountered with the printing of EUR 100 notes is an "excellent example of the control carried out by the ECB" (See other article on page 10).
