Brussels, 04/01/2002 (Agence Europe) - The European Commission has no intention of intervening in the polemic on the Italian government's general European policy, nor on its introduction of the Euro. On Friday at a press conference, Commission spokespersons were more eager to stress the progress that has been achieved in Italy, where the rate of transactions in the new currency stands at 25% (as opposed to 3% according to initial data provided by the Commission yesterday). The rate is about the same as that registered in France, Austria and Belgium. A source close to the Commission pointed out that Romano Prodi was keen to avoid being drawn into this debate that risked making the situation even more bitter.
The Commission gave an update on how use of the Euro was going on the second working day of the year (Thursday) and declared that significant progress had been achieved throughout the Euro-area. On average, 40% of transactions have been carried out in Euro and 97% of machines dispensing notes have been adapted. Commission spokesperson, Pedro Solbes believes that the "baptism of fire" will occur on Saturday, given that Saturday usually sees the biggest turnover of any other day of the week. The Commission is calling on consumers to change their big national notes at the banks rather than spend them at the shops (where their abundance has created serious difficulties in giving change back in Euro) and has highlighted the fact that a large number of big stores have had difficulty in getting hold of small notes, such as those of 5 and 10 EUR. The Commission is very much hoping that the 50% threshold in cash payments will be in Euro by Friday in almost all Euro-zone countries.
According to information provided by Euro-zone Member States, the number of cash payments made in Euro on Thursday strongly increased in all countries, with an average of around 40%. This figure is close to that of the 50% mark recorded in three countries - Germany, Greece and Luxembourg and is more than the 25% rate experienced in Belgium, France, Italy and Austria. In the Netherlands, Euro use now accounts for more than 75% of transactions (Dutch banks will be open on Saturday in order to meet the strong demand for Euro). Elsewhere, transactions made in Euro tends to have been higher in small businesses rather than amongst large-scale distributors, where big national cash denominations still appear to dominate financial dealings, and in countries where cash payments appear to be outstripping payments made electronically. Shopkeepers are systematically giving change back in Euro in almost all countries (96% of sales outlets in France and the Netherlands for example). Almost 97% of cash dispensers were adapted to the Euro by 3 January - 197,000 machines in all. Converting these machines has now been completed in seven countries: Germany, Austria, Ireland, Luxembourg, Belgium, Greece and the Netherlands and the rate is now more than 95% for two countries, France and Spain. In Italy, Finland and Portugal, this rate stands at 90%. The volume of withdrawals is still at a high level. 1.7 million operations were registered on Thursday in Italy, 800,000 in Finland, 325,000 in Austria and 93,000 in Luxembourg. The Commission has observed that queues at counters in banks have been long almost everywhere, with consumers arriving en masse at the banks in order to change their national currencies into Euro.
The Commission has also observed that: waiting in banks is longer than usual but normality is returning in retailing, queues in shops are normal overall, including large-scale distributors; the situation in the railway stations has improved but some difficulties are still being experienced at tolls on motorways; electronic payment terminals are working normally, banning the making out of cheques in the former national currencies has been respected by almost all consumers, four cases of counterfeit Euro notes have been detected in Germany and Ireland (in two of these cases this involved the simple sticking together of forged notes and in the other two cases, photocopies of 10 and 20 EUR notes.