The euro reflects
the determination of the people of Europe to share a future
together. The cash changeover to the euro on January 1st 2002
will be an unprecedented logistical and strategic challenge.
Several matters are particularly important for the success of
the operation, namely the logistical problems of distributing
euro banknotes and coins, the complexity of handling two currencies
at the same time, and the concerns being voiced by consumers
at possible price rises at the very moment of the switchover
to the euro. According to the latest survey, generally speaking
speaking, large firms are well prepared, but SMEs are still
a cause of concern. Public administrations have completed or
are at the final stages of completing the legal and operational
arrangements for the changeover. By contrast, the state of readiness
of local authorities seems seems, on the whole, to be still
unsatisfactory. The sub-frontloading of euro banknotes to the
general public before January 1st has been ruled out, as it
might cause confusion. However, the sub-frontloading of coins
only will occur as from the second half of December 2001. The
degree to which individuals are informed has improved considerably,
but there are still gaps in the public's knowledge about the
details of the operation. It must be particularly pointed out
that fears of abuses and cheating on prices are worrying the
consumers, and that this index of discomfort continues to rise.
The private sector in the euro area, and particularly credit
institutions, will have to bear entirely the huge changeover
costs, with no compensation being envisaged by public authorities.
This refers applies not only to the costs directly related to
the physical cash changeover itself, but also to many other
internal and external adjustments that will have to be made.
In the new euro environment, implementation of the FS Action
Plan should complete and refine the regulatory framework for
to create a true pan-European financial market.
