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The Euro Changeover in Slovakia

Igor BarátPlenipotentiary of the Slovak Government for the introduction of the euro (2007-2009)

Sofia 7 Dec 2009

General Assesment

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Slovakia on Track to the Euro

2003(€ -6y) Strategy of the Adoption of the Euro in the Slovak Republic

2004(€ -5y) Slovakia becomes a member of the EU Specification of the Strategy

2005(€ -4y) National Changeover PlanDesigns for Slovak € coins ERM II entry

2006(€ -3y) ............general elections, new coallition............2007(€ -2y) Changeover Plan update, preparations in sectors

preparations for the campaign – tenders2008(€ -1y) Changeover Plan update, preparations in

sectors, double pricing, Conv. Report, Council decision, conversion rate

Info CAMPAIGN 2009(€- day) double pricing, CAMPAIGN CONTINUES

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Smooth and succesful

• High level of public awareness (93% informed)

• Enough cash (sub)frontloaded on time = no problems with cash demand

• ATMs, POS operational immediately• Strong consumer protection program• Mandatory double pricing in advance• Dual circulation till 16 January • Extended hours in banks for cash exchange• Slower withdrawal of koruna cash

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Impact on Inflation

• Price increase by – 0,12 – 0,19 % (NBS) – 0,24% (MoF)

• Less than Malta, Cyprus, Slovenia (0,3 %)

• Unjustified jumps in prices not registered

• Some insignificant cases found in restaurants, hotels, cafés, services with

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70

39

3337

35

9107119111212

1220

28

5451

42

45

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3040506070

8090

100

enough not enough

Do you have enough information about the euro changeover (Slovak Stat´s)?

Saturation with information

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2730 29 31 28

37 3538

43 41 40

29

45 42

5154

3331

27 26 28 26

0

10

20

30

40

50

60

X.200

4

V.200

6

XI.200

6

V.200

7

V.200

8

20.6

.200

8

21.7

.200

8

22.8

.200

8

24.9

.200

8

21.1

0.20

08

14.1

1.20

08

benefit disadvantage

What will euro mean for you, personally (Slovak Stat´s) ?

Public opinion on the euro

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The introduction of the euro is/was...

11% 10% 8% 7% 10% 10% 15% 20% 24%

35% 39%35% 36%

39% 38%

43%

51%50%

30%32%

38%27%

34%30%

25%

19% 16%12%11% 14%

15%

11%14%

10%3% 5%12% 8% 5%

15%6% 8% 7% 7% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6/2005 4/2007 11/2007 2/2008 5/2008 7/2008 11/2008 1/2009 3/2009

NK/NA

Definitely baddecision

Rather bad decision

Rather good decision

Definitely gooddecision

Focus Agency, SK)

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Lessons learned

• Political consensus is essential!• Realistic and not shifted target date• Starting preparations well in advance pays!• Effective/transparent structure of

responsibility• Best practises from other countries (AT, SI,

BE, MT, CY... • Not everything works everywhere (black list)

• Comprehensive „KISS“ campaign

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Hurdles and troubles

• Everybody needs more money, staff...

• Public procurement process • Short time for minting,

sub/frontloading• Slow legislation – amendments,

modifications, exceptions

• Public sector is always slower • Public myths to be fighted („teuro“, too

many coins, chaos among elderly....)

Good Reasons

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The Ten (Euro) Commandments...

1. Discuss extensively before the target date is set2. Start preps. immediately after setting the date 3. Draft realistic and detailed Changeover Plan4. Create clear structures of responsibility5. Provide adequate budget, staff6. Communicate permanently home/outside7. Start with big business sector8. Special attn. to minorities, vulnerable groups9. Look for consensus on main new legal provisions 10. Think of crises scenarios („Plan B“) for everything

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Thanks for Your Kind Attention

Igor Barát

Plenipotentiary of the Government of the Slovak Republicfor the introduction of the euro (2007-2009)

Advisor to the DG – Poštová banka Bratislava

igor.barat@pabk.sk