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Belgian Minister of Finance - EU Belçika Maliye Bakanı - AB The Euro- Preparing for Notes and Coins Planning for the big switch The final changeover to the euro, and especially the introduction of euro notes and coins, is an issue of overwhelming importance for the future of Europe. From 1 January 2002 all national notes and coins have to be gradually withdrawn from circulation over a period of six months at the most. The replacement of the existing national coins and notes by the new European ones, and the practical organisation of the period of the double money circulation, is a gigantic operation that, for our population, will be the most visible step of the Economic and Monetary Union. On the one hand the replacement of the national currencies by the euro causes serious logistical problems regarding the production, the transportation and the conservation of the money, and on the other hand, it creates security problems. Replacing the Belgian Franc In Belgium, the passage to the fiduciary euro will take place in three phases and consists of eleven operations: I. First phase: preliminary phase During this phase one will proceed to: • The production of 2 billion coins, for a total weight of 9 000 tons, and 530 million notes, necessary for the launching of the euro in Belgium on the 1st of January 2002. The large quantities of coins and notes to be made and the short period of time available, and the special packaging (eurostarterkit, eurominikit, wads of 25 bank notes), are a new challenge for the Royal Belgian Mint and for the Belgian National Bank. • The frontloading of the banks, the Post and the transporters of values in coins and notes. They will have them from 1 September 2001. The coins will be conditioned in rolls, in “euro starter kits” for the professionals, and in sacks for the “euro mini kits” for individuals. The euro starter kits are then meant to be distributed to the business, retail and civil society organisations. As for the notes, the banks, the Post and the transporters of values, they will be provided with small denominations as from November 2001. • The recuperation of a part of the “sleeping ready money” that private individuals retain, the “money box operation”, which will take place from 15 October till 15 November 2001. • The frontloading, with coins and notes in small denominations, of certain economic sectors in close touch with the consumers. This frontloading will take place through the financial institutions, from 1 December 2001 onwards. • The frontloading for private individuals, only in coins, as from 15 December 2001. The general public will be able to purchase a euro mini kit at the banks, the Post, the Belgian National Bank and the public transporters (railway, underground, buses). Companies will be encouraged to give each staff member on 15 December 2001, a euro mini kit. • The adaptation and testing of the different automatic machines for the passage to the euro, which is a very difficult operation. II. Second phase : the period of the dual circulation The second phase will last two months and will involve a large number of parties in order to ensure the circulation of coins and notes into circulation. After two weeks a large majority of the cash transactions should be in euro. The start of the second phase will also be very difficult in the field of the transport of the money: the deliveries of the euro coins and notes will have to be carried out at a high speed, while the withdrawal of the Belgian coins and notes will begin at the same moment. The end of the phase of the double circulation will coincide with the abolition of the legal currency of the Belgian franc, on 28 February 2002 at midnight. To accomplish these objectives: • The cash dispensers will no longer deliver Belgian francs. They will be charged with notes of 20 and 50 euro that will be delivered as from 1 January 2002 at 0.00 hour. The bank and the Post counters will only deliver euros, preferably small denominations. • The banks and the trade have committed themselves to change, as far as possible, only in euro as from the beginning of 2002. The institutions that make payments to persons drawing a social allowance will have to take the necessary measures to start already making those payments in cash in euro from the first days of January 2002. • The exchange of the coins and the notes in Belgian francs will start. During the period of double money circulation, the Belgian franc will, for bank customers, be exchanged into notes in euro, with no additional charges and without restrictions, subject to previous notice however for large amounts. Small amounts will immediately be exchanged to euro. It will be possible to deposit large amounts of coins in Belgian francs into an account without charges or restrictions. Individuals without a bank account will be allowed to exchange their coins and notes in Belgian francs into euro for free to a maximum that will be determined by every bank and the Post. Finally, deposits of coins and notes in Belgian francs will be accepted for free and without limitations during the period of double money circulation and even afterwards till 31 December 2002 included. III. Third phase: the exchange of hoarded Belgian francs The third phase will start with the abolition of the legal tender of the Belgian franc. It will be consecrated to the recuperation of the hoarded Belgian coins and notes. This phase will be quite long in order to reassure the public and to avoid a massive affluence of Belgian coins and notes during the period of double circulation. The exchange of the coins and notes will be free of charges. • The banks and the Post (via a deposit into an account and free), and the Belgian National Bank will exchange hoarded Belgian francs until the end of 2002; • Afterwards, exchange will be possible at the Belgian National Bank, without any restrictions in time for the notes, and until the end of 2004 for the coins. The future of the euro group Belgium will occupy the Presidency of the European Union in the second half of this year. As Sweden, holding the Presidency in the first half-year, does not want yet to join the euro zone, Belgium has also acted as president of the Euro group for the whole of 2001. Considering the timetable, the euro will take up a prominent place in the agenda of the Euro Group. So first of all the definitive changeover to the euro and the introduction to the euro coins and notes must be successfully completed. The visibility arising from the introduction of the circulating euro can provide a catalyst to promote the use of the euro in other areas, namely on the international financial markets. The Belgian Presidency will be concerned: • firstly to keep a close track of the state of affairs in the passage to the euro. Recently the Commission drew up a document Preparation for the changeover to the euro on behalf of the monthly monitoring. This involves two points: • the evolution in the use of the euro by the economic actors (consumers, retail business,_) and in the knowledge of the timing of the changeover. This use is low: at the end of 2000 only 1.6 % and 0.7 % of the bank accounts in Germany and France were in euro. To increase that proactive scenarios of changeover of the financial transactions have been decided and will be implemented from the middle of this year on. So the citizens will already be used to the euro at the moment of the introduction of the notes and coins; • keeping a close track of the implementation of the changeover scenarios by the Member States. • secondly security precautions to avoid accidents in the changeover to the euro Different initiatives are possible: • a better protection of the notes against counterfeit through an appropriate protection, supervised on a European level. The Member States have to specify and to punish violations uniformly. • the formulation of a sort of disaster plan on a euro zone level could be considered. One of the solutions to problems in a Member State could involve cross-border responsibilities for officials responsible for public order and bond transport. • the last concern will be to put the communication on the passage to the euro on the right lines Three dates that will have a key role in the changeover to the euro can be identified: • at the informal Ecofin of Liège on 21, 22 and 23 September an effective presentation of the coins and notes will be organised together with special attention to the frontloading of professionals; • the European summit of Laken on 14 and 15 December will put attention on the frontloading of individuals with coins; • at the end of the Belgian chairmanship on 31 December 2001, the start of the distribution of the notes will be highlighted. The communication of different authorities (European Central Bank, the European Commission, the Presidency, the Member States) should be coordinated with harmonisation of the delivered messages. The content of these campaigns will cover many different aspects: the reasons for having a single currency, learning about the new scale of values, the need to make active preparations for the changeover, but also, of course, the physical appearance of the euro coins and notes and the practical arrangements for exchanging the currency. The communication campaigns, especially around 31 December, also have to stress that the imminent arrival of euro notes and coins, and their entry into general use for cash and electronic transactions, will constitute a major step forward for European integration, which needs such tangible successes in order to maintain its momentum. When the euro becomes tangible for all economic agents that will undoubtedly increase its transparency and legitimacy. As a result of this leap forward, economic coordination should be seen, more than ever before, as an exercise offering the chance of real benefits for society. The future of Europe where 300 million of people share a common currency, depends on the coordination of national economic policies, which is the main objective of the Eurogroup. The decision already taken to include structural reform in that coordination only confirms that diagnosis. It implies the reinforcement of a democratic European culture based on a dialogue, which the persons in charge of economic policy maintain with civil society and the business and social community. The Presidency will also launch initiatives to make the younger generation aware of the emergence of a new European monetary area, and the coordination of economic policies, which is closely linked to it. With the introduction of the euro coins and notes, one of the great handicaps that the euro faces -namely the lack of visibility- will probably disappear. It must be the intention of this chairmanship to use this fact as a catalyst to extend greatly the external use of the euro. This currency would then occupy its appropriate place in the international financial markets. Encouraging external use of the euro The Presidency could take different initiatives to stimulate the external use of the euro: • Firstly a detailed analysis, especially of the balance of payments of the euro zone and particularly the circulation of capital, is necessary. The euro has suffered because of unbalanced money transfer: European investors export lots of capital while the investors outside the zone pass over the financial markets in euro. The study should provide a clear understanding of the determinants of this money transfer: differences in interest and in growth with the United States for example. The relative inefficiency and the inadequate integration of the financial markets in the euro zone, compared to those in the United States, of the euro in the international financial markets should also be better understood. The external use has different dimensions : • use in international trade (as invoice and payment currency); • use in the international financial markets (by banks, on the bond and the money markets); • use by monetary authorities (as investment for the exchange reserves, as anchorage currency for their monetary and exchange policies); • use in the exchange markets. The determinants of the use of the euro on each of these areas are different; the actions that are to be undertaken have to be differentiated. • A consultation of the financial sector will be a second initiative. In order to stimulate the external use of the euro it could be a good plank in the platform to consult the financial sector to submit some proposals. Special attention should be paid to the integration of the private over the counter markets, first of all of government stocks. Since government stocks become scarce, because of the consolidation of the public finances of the Member States, attention must also be paid to the integration of the markets of the industrial bonds and bills, through which the enterprises finance themselves. This consultation could lead to precise initiatives. The European credit insurance companies should draw up their contracts as much as possible in terms of euro. Quotation of raw materials in euro can be introduced. • Finally, under the chairmanship, relevant information should be given on the international use of the euro. Specific seminars on investments in euro securities should be organised in Brussels and abroad. Special attention would go to candidate countries for accession to the European Union, which are very interested in the possibilities of accession to the euro area. Russia also plans an increased use of the euro. The euro – a symbol of political union More than just a new monetary instrument, the euro is a strong political symbol of the European integration. The arrival of the euro will boost the European debate about the future. During the Belgian Presidency of the European Union, that debate will include the enlargement of the European Union, the installation of a stronger political authority that could be based, one day, on the direct election of the President of the European Commission, and the possibility of direct financing of the budget of the European Union through fiscal means, but without any overall increase in tax levels. Early release of banknotes? Reynders insisted he could see no way that the decision not to front-load Euro banknotes to the general public could be changed. He personally was in favour of an earlier release of notes, but the vast majority of EU governments were not and it was his job to reflect that view. He agreed that the dispensing machines would all have to work perfectly from the start, so the obvious answer was a round of testing in the days before the launch. Euro-zone growth It was true that Europe was on the receiving end of financial shocks from the US downturn. But the EU had internal growth capacity and increased trade within the Euro area, and should be able to maintain low inflation. It was now important for the Eurogroup to give out confident signals, and, against the odds, the EU has maintained its growth forecasts. Now it was essential that all the euro-zone countries move together in the same direction on fiscal consolidation and convergence. Replacing the dollar? There was no question of trying to substitute the Euro for the dollar in the world global economy. It was more a question of establishing the Euro alongside the dollar and yen as a world-class currency. "We are not going to fight against other currencies - just establish increased trade in the Euro," he concluded. DIDIER REYNDERS: “EURO – BANKNOTLAR VE BOZUK PARALAR İÇİN YAPILAN HAZIRLIKLAR” Euro’nun para birimi olarak benimsenmesi, özellikle de banknotların ve bozuk paraların kullanıma sürülmesi Avrupa’nın geleceği açısından çok önemlidir. Ulusal para birimlerinin yerine Euro’nun kullanılmaya başlanması paranın üretimi, taşınması ve saklanması konularında hem lojistik, hem de güvenliğe dair sorunlar yaratmaktadır. Belçika’da Euro’ya geçiş üç aşamada gerçekleşecektir. Euro’nun Belçika’da 1 Ocak 2002’deki lansmanı için toplam ağırlığı 9000 ton olan 2 milyar adet bozuk para ve 530 milyon adet banknot basılacaktır. Banka, postane gibi kurumlara Euro cinsinden para gönderilecektir. Çeşitli ATM makinelerinin Euro’ya göre ayarlanması ve test edilmesi de çok zorlu bir iş olacaktır. Hem ulusal para biriminin, hem de Euro’nun kullanımda olacağı ikinci aşama iki ay sürecek ve paranın piyasada kullanımını sağlamak için çok sayıda tarafın katılımını gerektirecektir. Büyük bir hızla bir yandan euronun piyasaya dağıtılması, diğer yandan da mevcut Belçika paralarının piyasadan çekilmesi gerekecektir. Bu aşamanın sonunda, yani 28 Şubat 2002 gece yarısında Belçika frangı resmi para birimi olarak kullanımdan kaldırılacak ve üçüncü aşama başlayacaktır. Bu hedefe ulaşmak için, ATM’lerden artık Belçika frangı çekilememesi sağlanacak, 2002 başından itibaren bankalarda ve döviz bürolarında mümkün olduğunca sadece Euro işlemleri yapılacaktır. Ayrıca banka müşterileri için herhangi bir sınırlama veya komisyon uygulanmadan Belçika frangı Euro’ya çevrilecektir; buradaki tek şart büyük miktarlar söz konusu olduğunda önceden bankaya haber verilmesidir. Euro’nun piyasaya sürülmesiyle görünürlüğünün artması, uluslararası para piyasalarında da euronun kullanılmaya başlamasını destekleyecektir. Özellikle uluslararası ticarette, para, döviz ve finans piyasalarında Euro’nun kullanılması amaçlanmaktadır. Ancak öncelikle Euro bölgesindeki ödemeler dengesi ve özellikle dolaşımda olan sermaye konusunda detaylı bir analiz yapılacaktır. Bu konuda Avrupa Merkez Bankası, Avrupa Birliği Komisyonu, AB dönem başkanlığı ve üye devletlerin uyumlu çalışması şarttır. Bu yılın ikinci yarısında dönem başkanlığı görevini üstlenen Belçika, bu konuda yoğun girişimlerde bulunmaktadır. Euro’nun tanıtımı için düzenlenecek kampanyada tek para biriminin kabul edilmesinin nedenleri, değişiklik için yapılan hazırlıklar, Euro’nun görünüşü ve Euro’ya geçişin pratik yönleri hakkında bilgiler verilecektir. Ayrıca Euro’nun sadece bir para birimi değil, Avrupa entegrasyonunun güçlü bir sembolü olduğu da ortaya çıkacaktır. |