Brussels, 18/04/2008 (Agence Europe) - For the people of both Cyprus and Malta, the changeover to the euro has been a success. According to a communication adopted by the European Commission on Friday 18 April, 95% of Cypriots and 90% of Maltese consider the changeover to the euro in their country to have been smooth and efficient. The switch to the euro on 1 January of this year has had only a limited effect on prices, the impact of the changeover on inflation being estimated at between 0.2 and 0.3 percentage points. These figures are similar to those observed in previous enlargements of the euro area and have not affected overall inflation in the two countries, the Commission says. The communication says that it would be premature to draw conclusions on people's impressions of price changes. In the first month after the introduction of the euro, people's perceptions seem to have been kept in check, although measured inflation accelerated. In February there was an increase in perceived inflation rises in Cyprus, while there was a fall in Malta (Malta was the first country to prohibit rounding prices up in conversions to the euro). The Maltese and Cypriots adapted swiftly to using the euro and experience shows that, with careful preparation, a four-week period when both old and new currencies are in circulation may be sufficient.
Among the points for reflection, the Commission proposes to review the procedure for allowing small companies to obtain cash in euro before the changeover day. So that more retailers are supplied with euro cash in advance, and to reduce the length of queues in banks after the introduction of the euro, the ECB is currently considering how to simplify guidelines on sub-frontloading. The Commission also suggests that account be taken of the demand from collectors when producing euro coins, and carrying out comprehensive information campaigns to boost consumer confidence, particularly with regard to rounding prices up or down and price-setting, and on the euro's security marks. The communication is available at the DG Ecfin site: http: //ec.europa.eu/economy_finance/publications/publication12440_en.pdf (A.B.)