Preparations affect all parts of the economy and all levels of society, and are the responsibility of the national government. The national authorities draw up a national changeover plan outlining the overall framework and key elements of the transition to the euro, and appoint a national steering structure to coordinate and supervise its implementation.
The key elements to be covered by the practical preparations are:
- the cash changeover.
- the changeover of the different sectors (financial, retail, business in general, public administration, etc.).
- the information and communication strategy.
The cash changeover
As soon as it gets the Council's green light to adopt the euro, the country first needs to obtain sufficient euro banknotes and coins to be ready for the cash changeover. It can do so by borrowing the required volume of euro banknotes from the Eurosystem (the ECB and the national central banks of the euro area). Coins are produced by the country, either at the national mint if it has one, or commissioned from another country's mint if it doesn’t.
The supply of euro cash throughout the country is implemented through three important steps in time:
- The national central bank first supplies commercial banks with euro cash (‘frontloading’ process).
- In turn, commercial banks ‘sub-frontload’ retailers and other businesses with euro cash.
- A period of dual circulation generally follows the changeover during which national banknotes and coins are withdrawn but still have legal tender status. During this period, commercial banks exchange the former national currencies for euro cash without charge.
Preparations in the private and the public sector
Both the private and the public sector must adapt their administrative, financial, accounting and invoicing systems.
In order to help consumers to adapt mentally to the new currency and spot possible price changes, prices and other monetary amounts are displayed in both the national currency and euro in the months preceding and following €-day, either on a voluntary or a mandatory basis, depending on the country’s legislation on the matter, e.g. in shops, on bank account statements, and invoices.
Moreover, in order to build consumer confidence and allay consumers' fears of unfair price increases around the changeover, the country may adopt fair-pricing schemes:
- Agreements between businesses and consumers on the respect of price stability during the changeover are recommended, e.g. in the form of codes of good conduct, preferably accompanied by signs and labels to identify those businesses which have signed up.
- National authorities are also advised to develop price-monitoring schemes in co-operation with consumer associations, and keep the public informed about new price developments as they occur, in particular during the critical first weeks after the introduction of euro cash.
Finally, the country must adopt the necessary laws governing the introduction of the euro, and amend the existing national legislation where needed, notably to adapt references to monetary amounts (e.g. in tax provisions, social security laws and provisions on administrative fines, levies, grants, etc.).
Communicating on the euro
Timely and effective communication is another essential task for any EU country preparing to introduce the euro, and experience shows that it is critical to a successful changeover. Communication campaigns on the introduction of the euro must strive to ensure that people are able to recognise and use the new currency with full confidence and are fully informed about the consequences of the changeover. The Commission supports Member States in this task by means of partnership agreements with those EU countries which are approaching euro-area entry and have adopted a changeover communication strategy.
Progress reports on the preparations for the enlargement of the euro area
The practical preparations in the EU countries which have not yet adopted the euro are monitored by the Commission, which reports on their current status whenever a country is preparing to adopt the euro. The Fifteenth Report on the practical preparations for the future enlargement of the euro area COM(2014) 706 and its Annex were published in November 2015.