NEWSLETTER ISSN 1027­930X FROM THE EUROPEAN COMMISSION

Infe uroJULY 1997 n this issue NUMBER 4 The EMU framework Ask for the coins! A decisive step towards EMU Interview O.K., but it's still a little early yet. But the photo on this page Dr. Klaus Liebscher, President shows you what the money in your pocket will look like in five gterreichische Nationalbank years' time. bstering confidence in the euro HE final choice of the future euro coins is but will instead contain "northern gold" or coppered ie euro and the Member States Lundoubtedly the most concrete decision which steel, making them hypoallergenic. Nickel may ìelgium: a general commission ■ came out of the meeting of the heads of state and possibly be retained in the 1 and 2 euro coins for and four working groups government in Amsterdam on 16 June last. The security reasons. Luxembourg: other decisions are detailed on page two of this issue. pragmatic choises The decision was reached in several stages, starting In addition, the coins will be easy to identify for the with national competitions which closed in February visually impaired. The size, weight, thickness The euro and its key actors 1997, and were followed by a pre­selection by a and composition vary considerably from one coin to ies­Thibault de Silguy, panel of experts in March and by an opinion poll of the next. It is planned to engrave grooves on the íommissaire européen 2,000 European citizens in April. Two series clearly 2 centime piece and deep furrows on the 20 centime step forward! came out ahead of the others in this process. piece in order to facilitate recognition. The associa­ tions which have been consulted have expressed End Table Workshop 1 The author of the winning series, selected from satisfaction at the options taken here. Aversion costs at among 36 entrants, is Luc Luycx, a computer scien­ the centre of the debate tist working at the Belgian Royal Mint. As you can On page 2 we give the main decisions of the Amsterdam Council, which represent a decisive step forward towards see on the photo below, the one side of the coins Economic and Monetary Union. Round Table Workshop 2 which will be common to all EMU countries repre­ Luc Luycx y Helping people to use the euro sents the map of the European Union against a In the field background of transverse lines to which are attached the stars of the European flag. The design on the José Maria Cuevas, Chairman other face is left up to each country. There will be 8 of the Confederation of Spanish coins in all, with face values of 1, 2, 5, 10, 20 and 50 Entrepreneurs (CEOE) centimes, and 1 and 2 euros. The euro is our best enterprise

Tom Ruhe, Euro Project Director Philips The choice of materials is not final, but a proposal The introduction of the euro will be has been approved by the European Commission. a unique opportunity and a stimulus The opinion of the European Parliament has still to be obtained. Most of the coins will be nickel­free, Events and conferences

The euro and the markets Taking advantage of the euro to improve the efficiency of capital markets The euro in the regions Trentino enterprises and the euro An example of partnership The euro in the world International impact of the euro

Internet Site http://europa.eu.int/euro/

Information provravivie for the European Citizen The EMU framework

Amsterdam brings birth of the euro closer A decisive step towards EMU

Discussion was lively during the days leading up to the summit. On Monday 16 June the Fifteen unanimously confirmed their agreement to the stability and growth pact. With, in addition, a major resolution on employment.

Completing the framework for Economic and exchange of best experience as developed by Member Monetary Union and economic policy coordination States. It will also be able to formulate concrete recom­ figured high on the agendas of the heads of state and mendations, with a constant concern to preserve the government meeting in Amsterdam last month. In quality of social dialogue in all member countries. both cases, precise results were obtained, sending an important signal to citizens, business enterprises and When it comes to financing, the resolution's signato­ public administrations from every Member State. ries call on the European Investment Bank to widen its activities to support investment projects which are Stability both healthy and growth-promoting. The EIB will be The unanimity achieved on the stability and growth asked to set up a special facility to finance SME high pact was one of the main outcomes of the European tech projects. It will also enlarge its field of interven­ Council. This pact (presented in detail in issue no. 2 tion to include education, health, the urban of Inf&.u?v) is aimed at avoiding excessive budgetary environment and environmental protection. Finally, deficits in the euro zone, so as to secure the stability it will extend the maximum duration of financing for of the future European currency. Every participating major networks. As for the European Coal and Steel * ·-- state will have to seek to put its public finances into Community, which comes to an end in 2002, the order and to make sure its public deficit does not Commission will examine the transfer of the excess exceed the 3 % threshold. In this it will be helped by reserves to a fund for research in sectors linked to the the surveillance and "early warning" procedures set coal and steel industry. up under the pact. Should this threshold be exceeded, the state concerned will be invited to take appropria­ "Practical" decisions te measures under pain of sanctions, which are The Council of Amsterdam has taken a number of limited to 0.5% of GDP (gross domestic product). other decisions to ensure that the euro will be intro­ However, in certain exceptional circumstances, such duced in optimal conditions. First of all it has as a recession which has the effect of reducing GDP confirmed two important regulations which concern by at least 2%, an overshoot may be authorized. the legal status of the euro. The first defines the euro Much more than representing a constraint, the as the currency of all the participating countries as stability and growth pact sets out to promote growth from 1 January 1999. The second guarantees as from and employment thanks to the credibility of the euro, today the continuity of contracts and sets rounding which will permit lower interest rates. rules. These regulations come in response to many questions which have been put by enterprises and Growth citizens ever since the advent of the euro became The objective first of the Community, and then of the a certainty. In addition die European Council has European Union, has always been to create a frame­ adopted a resolution on EMS2 which will enable work which is propitious to economic development the currencies of those countries not taking part in and employment. This desire was reaffirmed in the first wave to achieve a maximum degree of Amsterdam with the unanimously adopted resolution stability on foreign exchange markets. The heads of on growth and employment. Article 2 of this resolu­ state and government have also selected the design tion well sums this desire: "Whilst primary for the euro coins (cf. p. 1). responsibility for combating unemployment remains with Member States, it is important to recognize the Finally, the Council and the Commission have been need both to improve efficiency and to enlarge the mandated, in coordination with the European scope of coordination by placing particular emphasis Monetary Institute, to examine three subjects of on employment promotion policies." This resolution importance: also pleads for European competitiveness as a m precondition for growth and employment as well as • the general directions of exchange rate policy in for the introduction of employment-friendly tax and the euro zone (article 109 §2 of the Treaty); social security systems. It also aims to examine all • the Community's position in international bodies Community policies in terms of their impact on job such as the IMF and the G7 on questions concer­ creation. ning EMU (article 109 § 4); • the Council's position in meetings of the Council Without waiting for the new treaty to be ratified, and of Governors of the ECB (article 109 Β § 1 states given the urgency of the situation, the Commission that the President of the Council and one mem­ and the Council will seek to support their analysis with ber of the Commission can take part in a the work of the "Employment Council" and the consultative capacity only). Information Proomunne for tbc European Citizen Interview

Dr. Klaus Liebscher President Oesterreichische Nationalbank A fostering confidence in the euro

Austria and its central bank are extremely The OeNB conducts a quarterly opinion poll to active in communicating about EMU. Why this gauge the public's opinion on EMU and on the enthusiasm in a country which has been an EU Nationalbank. The very high degree of confidence member for only two years? placed in our institution can be linked to its The Austrian public is showing great interest in committed pursuit of communications activities. the changeover to the euro. Most of the questions Therefore we will continue with this wide range of regarding this issue are addressed to its central bank, activities until the end of the successful changeover. the Oesterreichische Nationalbank (OeNB). Regular opinion polls confirm that there is no doubt about Are you happy with the progress in the the key role to be played by the OeNB, which is preparation work done by the EMI? considered the successful guardian of the currency. The EMI in co-operation with the 15 central banks Also, the OeNB enjoys a very high degree of public of the EU member countries has done excellent work confidence. in preparing the single European monetary policy. In order to ensure the acceptance of the single cur• I should like to specially underline the important rency, the trust people now place in the OeNB will contribution by the EMTs first president Alexandre thus have to be extended to the partners in the ESCB. Lamfalussy, who used his profound knowledge and The active involvement of the OeNB in communica• standing to have the necessary decisions made. tions activities to inform the public about EMU In particular the success in developing the framework reflects the European Commission's subsidiarity for the single monetary policy in Stage Three repre• principle, so that the main public information actions sents an important milestone. I am certain that the are taken by the Member States themselves. issues which remain open will be resolved in time to The current information strategy of the OeNB allow the ECB to take the necessary final decisions. is focused on alleviating Austrians' fears about the changeover to the new currency and about Austria has always been a communications relinquishing the schilling. At the same time, the link with the countries of Central and Eastern Nationalbank aims at fostering confidence in the Europe. Do you think you will aho hold this position euro. The presentation of analogies between the in the EMU? present and the future currency concept will allow for Historically and geographically, Austria has very the gradual transfer of the idea of stability orientation special ties to Central and Eastern Europe. Our from the schilling to the euro. This means there is no economic relations, too, are very close. For this enthusiasm but sound reflection on the future needs reason we observe and analyse the economic and and opportunities for our country. political developments in the transition countries especially thoroughly. What kind of information systems have you The OeNB's traditional role as a link between east been using and could you already try to draw up an and west has in fact become even stronger since evaluation of the results? Austria's accession to the EU. First, the OeNB can The OeNB disposes of a great variety of instruments. contribute its expertise on Eastern Europe in its Employees of the bank participate in hundreds of dialogue with the other EU central banks, and seminars and conferences annually all over Austria, second, the OeNB is increasingly acting as the point addressing public gatherings, schoolchildren, officials of contact for the transition countries who have and many other people in search of information. In questions about joining the EU and who wish to addition, we have formal as well as informal meetings prepare for EMU. The OeNB will strive to further with representatives of different segments of the develop this role within the ESCB. Austrian economy or the public sector. Press confe• rences supplement the range of public events. The fflid Do you estimate that it will be necessary to publications of the Nationalbank on EMU comprise implement monetary instruments in case of some of a quarterly newsletter as well as more general infor• these countries future participation in EMU? mation leaflets. The Bank's information services also Our analyses show us that the Central and Eastern include a call centre with a permanently operated European countries have come a long way in establi• telephone hotline. There, specialists of the shing Western-style central banks: They developed Nationalbank answer all kinds of question on independent central banks committed to the goal of European integration, EMU and the euro. price stability, managed a smooth transition from Last year, the OeNB together with the European direct to indirect monetary policy instruments and Monetary Institute (EMI) organised a series of confe• fundamentally reformed their financial sectors. As rences and discussions on various topics related to EMU. OeNB studies show, they will have to redesign their The OeNB also avails itself of the electronic media exchange rate policies before entering EMU. For the and multimedia: It communicates via screen-based period between the start of membership in the EU information providers. Furthermore, it has just and participation in EMU, the exchange rate mecha• finished producing a CD-ROM on the purposes and nism ERM II will provide a system suited for these functions of the Bank including the path toward EMU. countries' preparation for die single currency. Infor mat i on Programme for the European Citizen The euro and the Member States

Efficient introduction of the euro Belgium: a general commission and four working groups Luxembourg: pragmatic choices The objective of Luxembourg's conversion to the euro is to achieve a coordinated, coherent and rational changeover by the country's public CONSULTATION and coordination body on the sub­ The public administrations group examines all administrations. Whilst aiming to introduce the euro at the lowest Äject of the changeover to the euro was created in aspects of introducing the euro into the federal, com­ possible cost, the Luxembourg Belgium in August 1996 at the same time as the chan­ munity, and regional administrations. It has been government intends to promote its geover plan was denned. At the end of last year, the decided that the administrations will continue to use from the start of the transitional Council of Ministers decided to set up the General conduct transactions among themselves in Belgian phase. Commission for the Euro which it put into the francs until the year 2002. However, as from hands of Guy Quaden. According to the General 1 January 1999, administrations will offer enterprises Even if the Luxembourg ad­ Commission's head , the objective was twofold, and individuals the option of working exclusively in ministration will continue to work namely stimulation and coordination: "Many public euros. As from the first quarter of 1999 it will be pos­ internally in Luxembourg francs and prívate entities have started interna] preparations sible to complete VAT declarations in euros and during the transitional phase, it is of their own accord, but this is not yet the case every­ income tax and corporation tax declarations may be prepared to receive and make where. However, the deadline is approaching. Itisno denominated in euros as from the 1999 tax year. payments in euros for private operators who so wish, and also to longer possible to plead uncertain ψ as an excuse for "This is an ambitious and determined commitment", organize information flows in euros postponing preparatory work. We must encourage states Guy Quaden, before adding: "It is also a real (tax declarations, social security those who are still hesitating. Secondly, it is challenge because the deadline is very short. We are forms, statistical reporting, etc.). necessary to ensure coordination in order to prevent currently studying how much it will cost the adminis­ Nonetheless, once a particular people from taking a series of incoherent decisions". trations to transfer to the euro but the government enterprise or institution has has already decided that appropriations to cover the switched to the euro, this choice is Located in the National Bank of Belgium, the changeover will be a priority in the 1998 budget". irreversible. With regard to the public General Commission employs only ten or so full­ sector, the Luxembourg government would like to see administrations time staff. It controls two instruments: the Steering The working group on non­financial enterprises and switch over together on as large a Group and the Plenary Meeting, lhe Steering consumers focuses on the issues of enterprise adapta­ scale as possible, for reasons of Group is comprised of representatives from the tion to the euro, and enterprise­consumer dialogue, efficiency, but also in order to limit Ministries of Finance, the Economy and Social regulations and statistics. Compared with the other the costs of introduction. Affairs as well as from the Federal Information groups it is probably the one where the greatest num­ Service. It studies issues related to the introduction of ber of questions still remain unresolved. As Guy In practice, the government has set the euro, delivers opinions, and coordinates and Quaden explains, some of these questions will find a up a "Euro Public Administrations" supervises the working groups. The Plenary Meeting, response only at European level: "Several decisions coordination group, which will which meets three or four times a year, is in fact a must be taken at European level before we can move monitor the application of both national forum to prepare for Economic and forward. This applies, for example, to the date for general and particular conversion plans until 2002, together with the Monetary Union, and is attended by all the public introducing notes and coins and to the decision on whe­ persons responsible for the euro in and private players affected by the euro. ther or not to display dual prices. Even taking into each ministry. Parallel with this, the account the principle of subsidiarity, we feel it is impor­ four Round Tables (public Efficient introduction of the euro tant for procedures for introducing the euro — and administrations, financial sector, The common goal of the main working groups is to hence its fiscal treatment— to be die same everywhere. major enterprises, SMEs and ensure the efficient introduction of the euro in all This would avoid any distortion o f competition ". consumers) which were set up back sectors of the economy. These working groups are set in 1995 will continue to function, up and meet in line with the needs of the different A broadly based information strategy whilst the communication campaign sectors. Four main groups have been created: the on the euro will be conducted jointly The communication working group coordinates the by the Finance Ministry and the finance sector; public administrations; non­financial information policies conducted by the federal, com­ Luxembourg Monetary Institute. enterprises and consumers; communication. munity and regional administrations by involving private sector representatives in its proceedings. At treasury level, the Luxembourg The financial sector group was created before the According to the head of the General Commission government has created the legal General Commission , since it was this group which for the Euro, communication must be varied: "We basis which will allow existing OLUX developed the national changeover plan, which now believe tliatin order to be credible, informaùon must lines to be converted into euros as has to be applied in the field. The financial sector be broadly based and pluralist, as well as coherent and at 1 January 1999. Once this has group is divided into five sub­groups: banks; pruden­ coordinated. The Federal Information Service has happened, more or less 90% of tial supervision and reporting; notes and coins; developed a communication master plan for pubüc Luxembourg's debt will be administrations covering die period 1997/2001. For denominated in euros, with the financial markets; and bank currency. One of the balance, in the form of FLUX savings most spectacular results is that, as from 1 January example, die Ministry for Economic Affairs regularly bonds issued to the general public, 1999, Belgian banks will allow their customers to publishes a barometer on Belgian public opinion maturing by 2002. convert their accounts into euros at no charge and to concerning the euro. This is how we know that use it as a bank currency. 69% of Belgians are in favour of it".

Information Progratiime for the European Citizen The euro and the key actors

* + * ■m m ■ l ; Pratiques de Ja Ί Mion vers I'Eur Bruxelles!* ι' 1Q97

''3ÊÊ?^ Round Table on "Practical asoects of S\ À transition to the euro" A big step forward!

Yves­Tbiboult de Silguy, European Commissioner

Yves-Thibault de Silguy: less than 600 days to go! of consumer policy, opened her address by calling for On 15 May the European Yves­Thibault de Silguy, European commissioner in consumer concerns to be made a priority to ensure Commission brought charge of economic, monetary and financial affairs, that any policies implemented meet the needs of together in Brussels began by placing the round table in its proper consumers. Consumers participate in the Consumer context: "Even if they do not know all the details, Committee which has met for two days every month 250 representatives most Europeans today know that the euro will be since October 1996. Speaking frankly, Emma covering the full range of created on 1 January 1999. Everywhere, businesses, Bonino outlined the main thrust of Workshop 1 on future euro users: banks and public administrations are making serious introducing the euro: "For consumers this will consumers, traders, efforts to prepare for the euro. We have gone beyond embody their sense of belonging to the European the point of no return. It is not possible to reverse the Union. No doubt we need to plan for a gradual chan­ businesses, trade unions, procedure; this would be far too costly and perilous. geover to the euro, at all levels, including that of financial institutions and It is therefore no longer a question of debating whe­ consumers. Postponing everything until the end of national and European ther, how and when the euro should be created. We the year 2001 seems to me to be the worst solution, public administrations. must get ready. There are only 595 days left. Wehave especially if consumers are to be educated in the use enough time — but not too much — to identify and of the new currency''. Referring to Workshop 2 on The result was a lively resolve all of the practical problems which such a assistance to be given to euro users, the European debate and substantial change entails". consumer policy Commissioner also stressed that it progress towards getting was imperative to educate consumers: "Together we the euro up and running Outlining die various subjects tabled for discussion, shall find solutions to all the practical, technical and the European Commissioner began by insisting that legal problems. The most difficult problem will be to as wide as possible a consensus should be obtained on educate consumers about the new currency. We have the date chosen for the introduction of euro notes and all been brought up with a native tongue and a coins, it being understood diat no date would suit "native" currency. What consumers are being asked everybody. In the Commissioner's personal opinion, to do is to abandon their native currency'. Referring this could be in the autumn of 2001. Referring to the to the case of "vulnerable" consumers, Emma period of dual currency circulation, he defined the Bonino pointed out that today around 30 % of optimum timeframe as being one which minimises Europe's citizens are unable or no longer able to read costs whilst allowing the smooth substitution of the and write, before adding "there can never be enough euro for national currencies. He also pointed out diat information and education". the prevailing view was that this period should be far shorter than the six­month maximum originally plan­ Conclusions ned. Speaking about dual price display, Yves­Thibault The Round Table was a new milestone on the road to de Silguy wanted this to be supplemented by other introducing the euro. For the first time all players measures for familiarising consumers with the euro. were present to debate constructively the issues invol­ In his concluding comments on invoicing services ved in this process. In the conclusions of the round during the transition phase, he said that no charges table, three priorities were highlighted: to rapidly could be made for exchange risks since these would develop methods for educating people about the have disappeared between participating currencies. euro; to quickly finalise and announce national plans; However, handling costs could be invoiced as they are and to take the necessary practical decisions in May today, but under conditions of total transparency. 1998 at the same time as deciding on the first coun­ tries to participate. It was also stated that the euro was Emma Bonino: education first and foremost being created for all Europeans and that there would Emma Bonino, European Commissioner in charge be no euro casualties.

information Programme for tbc European Cttrzcn Pratiques de la nsition ve*» * Bruxelles;* Round Table Workshop 1 onversion costs at ^ thékentre of the debate

Emma Bonino, European Commissioner

When will the euro be introduced and how long will How will the euro be used between 1999 and 2001? two currencies be in circulation in each country? A. Crippa, speaking on behalf of the Italian bank In the opinion of R.­D. Wolf of the European Cariplo, believed that European banks should equip Committee of the Hauptverbands des Deutschen themselves with an instrument for managing inter­ Einzelhandels (German retail traders' organization), bank flows in euros. In his personal view, it would be it was essential to dispel doubts. He appealed for the imperative to handle operations in euros (current shortest possible period of dual circulation and if pos­ accounts, deposits, payments, financing, etc.) for rea­ sible a big bang. P. Dejemeppe of the Centre sons of competition. Speaking on behalf of industrial Coopératif de la Consommation nevertheless called firms, Τ Ruhe, Euro Project Director for Philips, for a period of dual circulation long enough to allow explained the internal organisation of the Dutch consumers time to adapt. L. Bini­Smaghi of the group, including its plans to use the euro for transac­ European Monetary Institute stated that the process tions between subsidiaries as from 1999 and, no doubt of introducing notes and coins could not be effective­ dual price display prior to the introduction of notes ly carried out in a couple of weeks, nor was it and coins. F. Campens, of the European Interregional advisable to prolong the period of dual circulation Consumer Institute , felt that consumers should not because this would encourage users to continue using be compelled to use the euro but that they should be national notes and coins. provided with the necessary instruments. In the view of the Fédération française des entreprises Four possible dates for introducing the euro were d'Assurances, it was necessary to wait until socially­ suggested. It was generally agreed that the period related products (wages, pensions, etc.) were less February/March 2001 was premature. The month of vulnerable to the introduction of the euro. J. Creyssel, October 2001 was considered favourably by the speaking for the Conseil national du patronat Spanish Consumer Council and by several other par­ français (French employers' association), also pointed ticipants, provided that the date was far enough out that payment of salaries in the national currency distant of the holiday period. This was also the pre­ would slow down the changeover to the euro. ferred date of the European Commission and the European Monetary Institute. 1 January 2002 was the Conversion costs favoured main choice of chambers of commerce and P. Simon, of the Association française des établisse­ federations of private businesses because this date ments de crédit et des entreprises d'investissement, coincided with the beginning of the new tax year. declared that banks were ready to play their role in However, this appears to be the only real advantage of the transition to the euro. However, he added that a date which particularly displeases retailers. Many such a role had a cost which would inevitably have to participants came down in favour of February 2002. be borne by financial institutions, the public autho­ Eurocommerce, for example, considered that this rities or customers, or by all three. He felt that where date would make for a smoother and less costly intro­ a service was rendered it should be possible to invoice duction of the euro. However, psychologically diis it. For example, a customer wanting a dual cheque date could have a negative impact by giving the book should be prepared to pay for it. impression that its introduction was being delayed Speaking on behalf of the European Bureau of beyond the scheduled date. Consumers' Unions (BEUC), K. Schweren took the opposite view, saying that no commission should be How will euro payment facilities be introduced? charged either during the transition phase or during There was general agreement on two points. Firstly the introduction phase for notes and coins because there would be a demand for euro­denominated pro­ die euro would then be legal tender. She maintained ducts as from 1 January 1999 and secondly a broad that applying charges during the transition phase range of products would be on offer (banking, insu­ would discourage consumers from using the euro. rance, etc.). For consumer associations it was Furthermore, citizens should not have to bear the important for citizens to rapidly familiarise them­ cost of a changeover which would be compulsory selves with the euro using the instruments to be made during the final phase. available to them during the transition period. In any The debate was a lively one in which positions beca­ event, the banks and various financial intermediaries me somewhat entrenched. Several participants felt would play a key role in introducing euro payment that it was important to clearly quantify die cost to facilities (cheques, credits cards, etc.). Eurochambres financial institutions of transition to the euro. Since appealed for European coordination of electronic the subject was a particularly sensitive one, B. Jolivet, payment facilities. The European Association of Chairman of the Advisory Committee of the Conseil information Programme Money Transporters went further by advocating the national du Crédit­Paris, who was chairing for the liltropean Citizen general harmonisation of the different systems and Workshop 1, felt that it could only be resolved legislation. through dialogue. 4

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, EUR-OP Inf^= uro Β.Ρ. 2201

L-1022 LUXEMBOURG

* Personal details: SUBSCRIPTION □ Please add my name to your mailing list □ Please change my data or my subscription as follows* (please use block capitals) Family name: First name: Company: Street: House no.: Postal code: Town: Country: To enable us to complete our files, we would ask you do indicate your field of activity (please tick one box only): □ Consumer □ Student Π Media □ Lawyer, barrister □ Bank □ Trade Union □ Chamber of commerce □ Commerce □ Employers' organization □ Consultant □ Accounting □ Teaching □ Regional authority □ Ministry □ Other Language version and number of copies desired: □ French: copies Π English: copies * Please indicate your reference no. □ German: copies (next to your address) 0/ The euro and its key actors Helping people to use the euro "How to help people to adjust to new euro values?" Round Table: was the key question addressed by Ronald Colvill, Workshop 2 Finance Director of Marks and Spencer, in opening the first session of Workshop 2 of the Round Table.

HE task was a difficult one, said Mr Colvill, but it organisations to examine specific concerns about the Ishould begin with a gradual but early use of dual introduction of the euro. pricing. The M&S director favoured setting mini• mum standards of information to be given to the Session Three: Training personnel in contact consumer and suggested that the presentation of euro with the general public prices would benefit from a common approach to the Wolfgang Rautenberg, head of training at Deutsche use of colour and typeface. Bank, presented the staff training programme Three issues needed early decisions: that the intro• launched by his bank in 1995. The first move was to duction of euro notes and coins will not be January 1 send to peoples' homes a brochure on EMU titled 2002 — February would be much better, said Mr The Euro — A Stable Cuiremy for Europe together ^^,!A. , Colvill; that retailers should be allowed to give with an EMU checklist and a question and answer change only in euros during the period of dual circu• leaflet. The bank then developed a card and board lation of notes and coins; and that "overprescriptive game designed to test and build up knowledge of the legislation" on dual display will be avoided. euro among the players. This had proved to have a Rerne-Claude Mader (Consommation, Logement et very positive impact on staff. A self-study package Cadre de Vie and member of the Commission's Euro then followed which contained tests enabling people Working Group) called for dual pricing to begin soon to judge their progress. after January 1 1999 and to continue well after the More specialised and differentiated training arrival of euro notes and coins. While acknowledging programmes were now being implemented in the that it was only one method of helping consumers to bank's main businesses. In May, the bank had adjust, she said it should apply to a wide variety of launched its own Business TV transmitting prices, not just those in shops, and cover such things 15-minute teaching programmes via satellite. These as tax returns, wages slips, rent contracts and are accompanied by special brochures containing insurance policies. Consumers were not asking for supplementary information. two prices on everything — "it is the final figure on Peter Coldrick (European Trade Union Con• the bill which is of interest", she said. This need not federation) explained the three concerns of the trade necessarily be mandated by law but measures would union movement: that conversions are done fairly need to be uniform and based on a certain minimum and correcdy; that adequate staff training be provided threshold ofinformation. and that the nickel content of coins issue be resolved. Ferdinando Foresi (Eurocommerce) warned that He warned that while the ETUC favoured economic heavy dual pricing burdens would push up prices. and monetary union, ordinary trade union members J. I. Lamata Cotanda (El Corte Inglés) argued that did not — they associated it with unemployment. the market would ensure sufficient information. Session Four: Helping disadvantaged groups to Session Two: Dual displays and possible make the change alternatives J. P. L'Hoest (European Blind Union), emphasised David Croughan (Irish Business and Employers that 2 % of the population were visually impaired and Confederation), said no legislation would be needed it was important to recognise their special needs in on dual pricing because retailers were determined to the design of notes and coins. Note designs were ensure that customer confidence was maintained. satisfactory, but less progress had been made on coins. He favoured March 2001 as the date for euro notes The 20 cent coin must have the tactile qualities nee• and coins but said that this must coincide with the ded to differentiate it from the other coins. There date for the automatic redenomination of scriptural must also be training for the visually impaired and amounts such as bank accounts, or otherwise there information in various formats, including Braille and would be chaos. audio. Companies and banks should also recognise M. Reuter (European Commission's Euro Working their responsibilities to the visually impaired said Group) explained that the Working Group wanted M. L'Hoest. dual pricing for six months before the euro change• Umberto Burani, (Economic and Social Committee) over and six months after it because of its pedagogical spoke of the needs of the illiterate and the elderly, effect. It would would prepare consumers for "€-day" saying that written materials were of little interest to while facilitating acceptance of the euro and avoiding them. Television could be much more effective. He distortion of competition. He thought that dual called for legal guarantees to ensure that certain pricing should be obligatory. categories of people are not taken advantage of. R Diewald (Association of Austrian Insurance Companies) said that if there were to be a mid-year Closing session changeover to the euro, there could be problems for In summing up, Dr. R. Häiden, Vice-president of the insurance products that are based on calendar years. Austrian Economic Chamber and Chairman of the Ann Robinson (British Retail Consortium) stressed workshop, drew attention to the Deutsche Bank the importance of getting people to accept the euro training scheme as a model to be copied. On other through a strong educational programme. issues he stated that only the final price should be Lorimer Mackenzie (European Commission) used in both currencies, not the unit price, that euro announced that the responsible Commissioners prices should be differentiated by colour and font and Infirm j linn Viu gravin intended to create an ad hoc working group of repre• that there should be price monitoring, not controls, fur riu European Ulti; sentatives of enterprises, retailers and consumer for transparency. In the field

José Maria Cuevas. Chairman of the Confederation of Spanish Entrepreneurs (CEQE)

The euro is our best enterpris

How do Spanish enterprises view the euro? commitments and respect the provisions of the Spanish enterprises are fully aware of the advantages Treaty on European Union to the letter. Both which they will gain from the euro. The introduction national and European authorities have a duty to of the single currency will create a stable and foster competitiveness in Europe. predictable macro-economic environment. Without a shadow of doubt this will considerably boost E5E3 The CEOE has drawn up a major informa• their activities. tion programme on the euro for the benefit of its members. What are the objectives and key elements So do you consider that the euro is a develop• of this programme? ment factor for Spanhh enterprises? The CEOE, with the support of the European Yes. The euro will enable company directors to Commission, has indeed drawn up an Information operate in a much larger market — the Single Programme for Spanish enterprises with a view to the European Market — using a single currency. introduction of the euro. Its aim is to inform and pre• Moreover, control over the main macro-economic pare Spanish enterprises, especially SMEs, for a factors, especially inflation and interest rates, will smooth transition to the single currency under opti• promote security and confidence and that will mum conditions. stimulate investment and trade. The plan covers the entire country and is due to be Furthermore, for enterprises operating in the euro implemented over the coming two years. It defines a zone, transaction costs will disappear and the risks series of initiatives designed to improve the awareness associated with payment methods will lessen becau• of Spanish company directors about all aspects of se of the growing importance of the euro on the EMU and use of the euro in transactions. The plan world scene. Enterprises will therefore be able to also includes a vast information campaign on the rely on a strong and stable currency, just like our practical consequences of introducing the euro into main competitors who use the dollar and the yen. the various sectors of industry, as well as permanent support from a telephone euro helpline , to help Finally, Spanish company directors will be in a enterprises, especially SMEs, to clear up any doubts position to take more informed decisions in that they and resolve any problems. will be able to compare prices direcdy and to assess the opportunities offered by the market. Another of the plan's aims is to raise the awareness of young people and the academic world about the euro What do companies and national and and to ensure broad media coverage of the issue. European authorities have to do to enjoy these benefits before the euro is launched? This information plan was officially presented on 25 As far as possible, enterprises should launch an action April at a major event attended by 1,000 Spanish plan enabling them to adapt to the single currency company directors. Also present were the Spanish and set up an ad hoc Working Group comprised of Prime Minister, José María Aznar; European representatives from all departments. This group will Commissioner Marcelino Oreja; the Spanish be responsible for supervising the transition strategy Deputy Prime Minister and Minister for the based on a precise timetable and budget. Economy, Rodrigo Rato; the Minister for Labour, Javier Arenas; and the Governor of the Bank of The national authorities must take all necessary Spain, Luis Angel Rojo. measures to guarantee the required degree of econo• mic convergence for introduction of the single tSSIËk Are you satisfied with the level of preparation currency. To achieve this they must take all the requi• amongst enterprises? site structural measures to ensure greater economic Yes, though much still remains to be done if we are to flexibility. With respect to the employment market, rise to the considerable challenge of changing over to the CEOE has recently signed an agreement with the the single currency. The CEOE will be unstinting in Spanish trade unions to reform the labour market its efforts to help Spanish enterprises to successfully which will certainly help to improve Spain's level of meet die challenge of the single currency under pro• Information Programme employment. per conditions, considering the euro as an tor the European Citizen opportunity. This is why the motto for our campaign European institutions must honour all of their is: "The euro: our best enterprise". In the field

Ton Ruhe. TOWARDS THE EURO Euro Project Director Philips EVENTS/CONFERENCES

SEMINARS ON EMU WITH THE PARTICIPATION OF THE ASSOCIATION FOR THE MONETARY UNION OF EUROPE The introduction of (AMUE) the euro will be a unique 16.07.97 — London: opportunity and a stimulus Promoted by: BAT Industries/AMUE. Speaker: C. Johnson. Contact: AMUE Tel.: (33 + 1)44.70.60.30 Fax: (33 + 1) 45.22.33.77 What is now and what will be in the future, When do you think you will be introducing the influence of the euro on Philips? Would the the euro in your book­keeping and will you be I FRANCE : impact of the introduction be positive? Could you generalising its use to the whole group? 07.09.97 — Paris explain how it will be? For early movers like Philips, the obvious question Promoted by: Chamber of Commerce. In general, the influence of the euro on a European during the transition period between 1999 and 2002 Speaker: B. de Maigret (AMUO. Contact: M. Chaufron, CCI Blois, company is a function of the complexity of the orga­ is, to what extent is the euro going to be used by other Tel.: (+33­12) 54.44.64.57 nisation and depends largely on the number of companies and maybe even by the public at large? No countries in which the company is operating and on prohibition/no compulsion during this phase will ~*~~1 GERMANY : the number of stakeholders involved in the various mean, the need to build in flexibility, not only in our 07.09.97 — Bad Segeberg business activities. Philips Electronics is operating in computer systems but also in our administration. We Title of the seminar: more than 60 countries world­wide, with about have already decided to publish our annual report and "Von der Mark zum Euro. 265,000 employees working in 100 different our quarterly figures in euros as from the 1st of Warum der Standort Deutschland businesses, so the influence of the euro is expected to January 1999. But reporting in euros is easy die Währungsunion braucht." be substantial. With respect to the introduction of the compared with the registration of euros in our Promoted by: Member of euro we have to make a distinction between the administration. For instance, we have to live with the Parliament/AMUE. businesses operating within a retail/wholesale type differences in statutory requirements between the Speaker: S. Collignon (AMUE! environment, i.e. close to the end consumer, and the member states, fiscal differences, rounding problems, Contact: AMUE Tel. : (33 + 1) 44.70.60.30 businesses dealing with typical industrial deliveries. etc. It is our objective to convert the general ledger, Fax: (33 + 1) 45.22.33.77 Our overall business performance will be positively the sub­ledgers, the internal and external reporting affected because of the elimination of internal into euros, at least in the Philips organisations based 17.09.97 — Nürnberg exchange rates and because of the creation of a much in EMU countries, which includes the corporate head Title of the seminar: more liquid and transparent financial market. But for office. We will also introduce the euro in our "Von der Mark zum Euro. the marketers in our organisation the impact can be inter­company invoicing system, which will have an Warum der Standort Deutschland diverse. Some of them have to rethink their domestic impact on our world­wide organisation. die Währungsunion braucht." pricing strategy, whilst others are already used to a Promoted by: Member of more pan­European customer approach. We believe Parliament/AMUE. Do you think that the euro will be a good Speaker: S. Collignon (AMUE) that a single European market and the euro will thing for the economy of The Netherlands and of create business opportunities for dynamic entrepre­ Contact: AMUE the European Union? What are you expecting from Tel. : (33 + 1) 44.70.60.30 neurs. We hope that a European company statute will the national and the European authorities to make Fax: (33 + 1) 45.22.33.77 also help overcome a segmented domestic approach. the introduction a success? As an electronics company based in Europe, we are I FRANCE : How long have you been preparing your facing severe competition from the Far East and from 18.09.97 — Loríent company for the euro? What structures have the US. We have to increase our productivity and to Promoted by: AMUE/Chamber of you been setting up? What are the objectives and decrease our cost base, which requires a mentality Commerce/Banque de Lorient. Speaker: M. Prévost (Banque de change. The introduction of the euro will be a unique the resources? France Lorient). In the late eighties, and being one of the founding opportunity and a stimulus at the same time, to Contact: M. François Frey, CCI members of the Association for the Monetary Union rethink our fundamentals. Jointly, European compa­ Lorient, Tel.: ( + 33­2) 97.02.40.15 of Europe (AMUE), Philips Electronics became nies have the potential to become significant players in actively involved in discussions about die creation of a global competition. The longer tenn challenge is that single European market. This resulted in a high level the euro will improve the investment climate in SEMINARS ORGANIZED BY awareness within the company of the need to investi­ Europe, resulting in renewed growth, ultimately THE EURO INFO CENTRES gate the possible implications of the introduction of the improving our employment situation. We believe, Ξ GREECE single currency. In 1995 we established the Philips that without hard driving support for monetary union, 10.09.97 — Thesalonlki Single European Currency Platform Group, chaired the individual European economies will be at risk. Contact: Yanis STAVR0U by the Chief Financial Officer of the Philips Group of Tel.: (+30­31) 53.98.17 companies. Since then, quarterly meetings were We expect the national and European authorities to Fax: (+30­31) 54.14.91 attended by a selected number of business, country and be proactive and timely in tenns of providing corporate function representatives. This year we trans­ the necessary legislative changes and eliminating of 17.09.97 — Semes Contact: Georges DR0UB0UKIS formed the Platform into a larger Steering Committee, unnecessary practical implementation differences we appointed a full time Euro Project Director and we Tel.: (+30­1) 417.05.29 between the Member States. But more importandy, the Fax: (+30­1) 417.46.01 established about 30 different working groups, invol­ biggest challenge should be to motivate die Europeans ving more than 200 people, most of them working part to adopt the new currency with great enthusiasm, time but some of them devoting themselves full time to providing a European 'glue' to our national feelings. inj or m at ton Programme the introduction of the euro. The objective is to Removal of die political and economic uncertainties fur tbc European Citizen prepare die company for die changeover per 1.1.1999. should dierefore be priority number one. The euro and the markets Taking advantage of the euro

| ITALY to improve the efficiency of capital markets 16.07.97 — Brescia Contact: Brunella SCALVINI Strategies for achieving a euro securities market as transition to the euro. It stresses that redenomination Tel.: (+39-30) 377.47.70 broad, deep, liquid and transparent as possible were during the third stage of EMU is a change in how Fax: (+39-30) 374.96.12 due to be published by the Cornrnission in June. the value of a bond is expressed, not in the real value of the bond nor its currency. The economic benefits ASED on the work of a group of capital markets the market is looking for can best be achieved by I FRANCE experts and participants chaired by Mr Alberto redenominating old bonds issued in national 11.09.97 — Évreux B Giovannini, a senior economist with LTCM, the currencies in euro. They would then be tradable on Contact: Christian CHUPÍN Tel.: (+33-2) 35.88.44.42 report therefore reflects the views of market the same basis as new euro bonds. Fax: (+33-2) 35.88.06.52 practitioners on how they wish future euro markets to While not excluding other methods, the working operate and on the potential difficulties stemming group favoured a "bottom up" approach to from the switch to the euro. redenomination. This involves each holding by OTHER EVENTS A single "big bang" harmonisation of markets is said individuals and financial institutions being converted to be impractical, but the document points out that into euro using the fixed conversion factors and ^β GERMANY there are a number of technical issues such as market rounded to the nearest cent (two decimal places). The 13 - 20.07.1997 — Blaubeuren conventions, settlement periods and business day sum of all individual holdings is computed and mat­ "Minderheitenpolitik in Mittel- und conventions that can be tackled by the market itself. ched against the total held at the central depository. Osteuropa. Föderalismus als However, it exhaustively examines all major issues Any differences can be adjusted with the advantage Konfliktlösungsmodell bei including­: that the holdings at central depositories would be kulturellen Divengenzen in • the euro's impact on equity markets; unchanged and the total volume of securities issued fragmentierten Gesellschaften". would not be affected. However, there would be no Information: • redenomination of securities from national possibility of avoiding bonds with uneven nominal Europäisches-Zentrumfür currencies into the euro; Föderalismus-Forschung, Sigwart- • procedures for issuing government debt; amounts in euro and cents, and this could cause strasse 20, D-72076 Tübingen. • benchmarks; trading and settlement difficulties. Tel.: (+49-7071) 29.77.368. • taxation and regulation; Fax: (+49-7071) 92.28.76 • market rules and conventions. Generally, the working group believed it would be helpful if governments informally co­ordinated their Equity markets debt issues from the start of monetary union at the I FRANCE The report concludes that the market structure for beginning of 1999. This would enhance liquidity, 15.07-17.07.97 — Strasbourg Final stage of the equities will not be changed by the euro and that transparency and predictability in the markets. Current "EURO-EXPO-INFO" project on an co­ordination and harmonisation are much less regulations requiring primary dealers to be located in exhibition barge on the Rhine. important for equity markets than for other markets. the country of the issuer are contrary to the concept of Mooring point: In the short term, relations between issuers and their a single market and should be removed, says the report. Promenade Dauphine. domestic markets will not be altered and may even be Information: strengthened by the Investment Service Directive. Taxation Tel.: (+33­1) 40.63.38.37 The main European Stock Exchanges have decided On taxation, the Commission emphasises that no on a "big bang" approach which means that from matter how much harmonisation of market Monday, January 4 1999 they will all trade and quote conventions and practices is achieved, distortions securities in euro. This reflects their desire to avoid would still result from differences in national tax the cost and complexity of having a euro price and a regimes, regulations and other restrictions on national currency price, allied to legal considerations. trading and investment. Thus, the yield on euro­ The "big bang" approach means that quotations denominated assets would vary depending on the displayed on traders' screens would be in euro, location of the contractual parties. transactions would be executed, recorded, matched, confinned and transmitted to settlement in euro, and Market rules and conventions that intermediaries would make the conversions to Nevertheless, the report comes out strongly in favour supply accounts in the currency desired by the client. of greater harmonising of market conventions so as to achieve transparency, avoid disputes and facilitate the Should you wish to list a Redenomination market's preparations for the euro. It recommends conference, seminar or publication The report carries a full discussion of the various the so­called Act/Act system for calculating accruals in lnf€uro, please send all approaches to redenominating share capital which it of interest which means the actual number of days relevant information (at least two says can take place at any time during the period during which the bond is held divided by the actual months before the event) to: 1999­2002. If nothing is done by the end of the tran­ number of days in the year. M. MAUVOIR, European sition period, it will occur automatically by regulation. Commission (Information, The working group has concluded that non­par value "EUR" the new currency code for the euro Communication, Culture and (NPV) shares appear to be the simplest and "EUR" will be the currency code of the euro. On 21 April 1997 Audio-visual), 200 rue de la Loi, least­cosdy solution to redenomination because there the Maintenance Agency of the International Standardisation B-1049 Brussels, Belgium. Organisation which is responsible for currency codes Tel.: (+32-2) 295.37.87 is no need for a physical exchange of share (ISO 4217) attributed the code "EUR" for the euro. Fax: (+32-2) 296.33.50 certificates, share prices can be lowered by simple splitting and capital does not have to be increased or The new code is intended for use in any application of trade, decreased. But the report points out that, while NPV commerce and banking, which is based on uniform, shares arc allowed by the EU's Second Company Law internationally agreed presentation of currencies. Directive, many countries have not yet passed the The European Commission and the European Monetary Institute national legislation needed to authorise them. have welcomed the decision of the Maintenance Agency as it will allow currency users to easily identify the new currency. The early attribution of the code "EUR" will help economic agents, in Information Pi Bond markets particular financial institutions, in their preparatory work for the for the Eur, pea The report concludes that early redenomination of introduction of the single currency. IO sovereign debt is desirable but not essential for the Trentino enterprises and the euro An example of partnership

Ä MONG the 500 or so partnership proposals exami- M ned by the Commission in the context of the information and communication campaign about the euro, one is worthy of special note. This is a project being conducted in the northern Italian region of Trentino on behalf of small enterprises and craft workers.

It was the Centro Europeo di Risorse Umane (CERU) which devised and conducted this informa• tion campaign on the European currency. This non-profit, non-political association promotes activi• ties that improve the quality of education and training and make optimum use of human resources. The CERU offers locally-based information and training to raise awareness of the problems and opportunities represented by the process of European integration.

Bringing information to local communities means applying the principles that govern the Commission's strategy for information and communication on die European capital; it is also difficult for them to afford euro: subsidiarity, decentralisation and partnership. or justify the cost of such a journey. Indeed, they are Number of seminars confronted with day-to-day realities that often have ¡n each valley The final goal of the CERU project was to little to do with die dieories expounded by outside of Trentino de-dramatise Monetary Union among economic experts. In view of this, the CERU opted not to get operators in die Trentino Region, by explaining it, craft workers and small enterprises to come to it but Val di Fiemme - 8 stimulating dieir interest and gaining their confiden• instead to go to them. ce. The project contains five operational objectives Primiero-Vanoi - 7 for achieving this general goal: To achieve this thirty or so financial and tax experts were selected from the Trentino Region and given Bassa Valsugana e Tesino -12 • to provide economic operators with a general specific training on the changeover to the euro. This framework for the changeover to the euro by training was provided by members of the Groupeuro Alta Valsugana -11 explaining the necessity and utility of the — voluntary speakers trained and sent by the Valle dell'Adige - 27 European currency; European Commission (see InfBuro n° 2) — at no cost • to provide infonnation in order to gradually to the seminar organisers. Val di Non -17 dispel fears about the changeover to the euro; • to carry out real-life simulations in order to assess These thirty people who, in addition to their specia• Val di Sole - 6 the impact on day-to-day business; lised expertise, were very well informed about specific • to encourage all those involved to take advantage regional characteristics, led 150 seminars in the Valli Giudicane -17 of the transition period (1999-2002) to properly various local districts. These seminars took place in prepare for die changeover to the euro; hired premises — community halls, schools, town Alto Garda e Ledro - 9 • to ensure that small enterprises and craft workers halls, etc. — outside normal working hours. Vallagarina -18 pass on their information and training to the region's inhabitants. The campaign, aimed at 11,000 small enterprises and Val di Fassa -3 craft workers, will not stop there. Each participant This project was implemented by holding 150 semi• was handed a 20-point questionnaire. The replies to nars in 150 of the region's 223 local districts, hi order these questionnaires are being analysed and evaluated to ensure that diis project was fully effective, odier and the results will be communicated to each partici• organisations were asked to cooperate: the pant. The Commission will also draw lessons from Association of Craft Workers and Small Enterprises this locally-based survey. Lastly, and by no means die of die Province of Trento (which includes 93% of the least attractive feature of die project, die average cost province's 11,000 small enterprises), the Craft of each seminar including all upstream and downs• Workers' Cooperative of Garanzia (which provides tream costs, was less than ECU 1,200, of which 50% technical and financial assistance to 4,200 enterprises) was paid by the Commission and 50% by the project and the SAPI (Services for Craft Workers and Small participants. Enterprises) which, in liaison with the previous groups, is responsible mainly for administration. The Commission wishes to encourage wider use of this type of information and training campaign. The originality and effectiveness of the "Let's get According to all the opinion polls conducted to date, ready for the euro" project does not lie in organising its format and effectiveness do indeed respond to seminars as such but in the way diey are organised. demand. Community-based information and training and attention to specific local requirements are two Intornili!ion Programme It is difficult for small enterprises and craft workers to major assets in negotiating the successful changeover for ihr European t.'irizeo spare a whole day to travel to the regional, national or to the euro. II International impact of the euro "United we stand" could be the motto for Economic and Monetary Union when the euro enters the international monetary scene

N the present context of growing economic globali­ 50% of commercial transactions and is used in 80% sation, the introduction of the euro by the of currency market operations. European o L o European Union will equip it with a tool that is com­ Commission experts estimate that 30% of world > mensurate with the role it plays in trade, according to exports will be invoiced in euros after the EMU •ρ CD an analysis published by the European Commission in comes into being. -J ό April 1997. In 1996, the fifteen Member States toge­ o ther represented 38.3% of the gross domestic product Hannonisation of the economic and financial policies -ρ* of the member countries of the Organization for of participating Member States, together widi Economic Cooperation and Development (OECD), the creation of an independent institution for mone­ O compared with 32.5% for the United States and tary management — the European Central Bank 20.5% for Japan. The Union's external trade, exclu­ (ECB) — whose primary objective is price stability ding intra­Community trade, totals 20.9% of world will guarantee the stability of the Euro. This will trade, compared with 19.6% for the United States and make it a particularly attractive reserve currency for 10.5% for Japan. Immediately after the euro is intro­ central banks, as well as allowing private investors to duced on 1 January 1999, the Union will have access diversify their portfolios. We are already seeing a to a financial market on a par with the role its econo­ steady increase in the proportion of world savings my plays on the world stage. This will mean a held in European currencies, currendy standing fundamental change for the Member States, whether at 37% compared with 40% for the dollar. This they are among the "ins" or the "pre­ins", as well as percentage is set to rise still further with the About for all the countries that maintain commercial and introduction of the euro. / InfSuro financial relations with them. 1 Geographically speaking, the use of the euro will ■t — A bond market to be reckoned with spread first to countries which have privileged links The first effect will be measured in financial tenns with the European Union in Central and Eastern îuro is published six times when the markets of the Member States are integra­ Europe, die Mediterranean basin and certain regions [year in English, French ted. All government bond issues will be denominated of Africa, such as die CFA zone. Elsewhere, use of Id German by the European exclusively in euros as from 1 January 1999 which will the euro will spread more slowly depending on bmmission's programme make them virtually uniform. Indeed, since currency the position occupied by die dollar today. Euro: one currency for Europe". risk will have disappeared entirely there will probably be only small risk differentials between countries as a The introduction of die euro will have consequences ' Production and layout: result of the nominal convergence required for entry for the Union's relations widi international institu­ De Visu Digital Document into the third phase of EMU. The euro bond market tions responsible for strengthening the stability of die Design, Brussels is set to rapidly become one of the most important world monetary system. However, in all likelihood financial markets in the world. Coordinator: Philip Clist, Mons, the current system of managed floating exchange assisted by Juan Areas rates will be maintained. EMU is expected to provide Greater stability a better balance within the international monetary Editorial Manager: The latest monetary crises demonstrated diat Europe system, thereby reinforcing die benefits of internatio­ Michel Visart, Brussels is extremely sensitive to fluctuations in currency mar­ nal economic coordination. The advent of the euro kets. The average openness of Member States' will therefore provide an opportunity to enhance the Translations: Exacom, Brussels economies is 30%, compared with 8% for the United effectiveness of coordinated economic policies which States and 9% for Japan. This makes Europe highly will contribute to greater exchange rate stability. and the editorial collaboration vulnerable to any shifts in national currencies. The of: ECO­European Communications, Brussels; euro will reduce this openness to 10% whilst ensuring The euro in the hot seat Anne­Michèle Eckstein, better cyclical synchronisation due to convergence The ever­closer arrival of the future European currency is being seen Brussels. between the economic policies of countries in the as an important event by the international community and in euro zone. From the macro­economic standpoint, particular by financial circles. In a concern to explain the euro to its Neither the European European economies will be stabilised. From the partners, the European Commission is multiplying its initiatives to Commission nor any person micro­economic standpoint, businesses in participa­ create a dialogue. At the end of March, a conference on the international aspects of the euro was held in Washington at the acting on behalf of the ting countries will be less affected by currency Commission is responsible initiative of the Camille Gutt Foundation and the International fluctuations. This will make the European Union a Monetary Fund. This resulted in a broad consensus that EMU will be for the use which might more stable partner at all levels. be made of the information achieved within the prescribed deadlines and that the euro will contained in this publication. become a major international currency. Since then Yves­Thibault de An increasingly international euro Silguy, the European Commissioner in charge of monetary questions, As from 1 January 1999, enterprises in the euro zone has taken part in the G7 summit held in Denver. Next September he will be able to use the European currency for intra­ will be attending the ASEAM (Asia Europe Meeting) in Bangkok, and Community transactions, as well as for international the IMF and World Bank meetings at Hong Kong before going on to present the EMU in Japan. These visits will be part of the efforts trade. Gradually the euro will break into international undertaken by the European Commission to make the euro better trade and little by little will become a viable alternati­ known in Asian countries. ve to the dollar. The greenback currendy represents

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