Petr Očko National Coordination Group for Euro Introduction Ministry of Finance of the Czech Republic March 2007

Preparations since 2003 Macroeconomic level Euro-area Accession Strategy (2003) Convergence Programme Evaluation of Economic Alignment with Eurozone Institutional level Institutional Arrangements for Euro Introduction (2005) – basic framework National Plan for Euro Introduction (2007) – detailed framework

Institutional Arrangements for Euro Introduction (2005)  Basic principles  Institutional framework  Rules for preparing the National Plan  Establishing the National Coordination Group for Euro Introduction  Cooperation between Ministry of Finance and the Czech National Bank  Government Appointed Coordinator for Euro Introduction – Petr Očko (2006)

National Coordination Group for Euro Introduction Ministry of Finance Czech National Bank Ministry of Industry & Trade Ministry of Justice Ministry of Informatics Ministry of Interior Ministry of Foreign Affairs National Coordinator for Euro Introduction (Ministry of Finance) Organisational Bureau (at Ministry of Finance) WG Financial Sector ( Czech National Bank ) WG Non-financial Sector & Consumer Protection ( Ministry of Industry & Trade ) WG Public Finance & Administation ( Ministry of Finance ) WG Legislation (Ministry of Justice ) WG Informatics & Statistics (M inistry of Informatics ) WG Communica tion (Ministry of Finance / Czech National Bank) Institutional Framework

Cooperation within the EU Main principles: Euro was already introduced in 13 EU countries – no need to invent new experimental solutions –> sharing best practices Delay or underestimation of preparatory process can threaten the process of introduction Early preparations and long-term communication allows for minimizing the costs and for smoother acceptation of the new currency Means: Direct communication with experts in particular EU countries European Commission platforms for communication – PAN II, DirCom Seminars, conferences, twinnings, information activities

National Plan for Euro Introduction Detailed plan for practical preparations Relevant EC Regulations and national legislation applied Best practices from other European national plans Recommendations of the Commission taken into account First version approved by the Changeover Board in February 2007 Updates planned

Basic Principles 1.Legal continuity 2.Dual display – time limited 3.Fixed conversion rate 4.Consumer protection 5.Preventing perceived inflation 6.Minimizing the costs 7.Communication

National Plan provides basic rules for Public & private sector preparations Dual circulation Dual display of prices Legislation amendments framework Basic framework for rounding Others – according to WG specifics

Scenario (Big Bang) bezhotovostní platby hotovostní platby €, Kč €Kč € označování cen Kč, €€, Kč Vstup do eurozóny („Velký třesk“) Konec duální cirkulace Rozhodnutí o zrušení výjimky na zavedení eura Zdroj: MF ČR Konec duálního označování cen €, Kč € € Předpřípravná fáze Přípravná fáze DUÁLNÍ OZNAČOVÁNÍ CEN DUÁLNÍ CIRKULACE Fáze po zavedení eura Kč

Euro in CR: next steps National Plan for Euro Introduction to be approved by Government Analysis of necessary legal adjustments Communication strategy Methodologies: –Monitoring of preparations –Information systems upgrades –Smoothing –Rounding (in specific cases allowed by EC Reg 1103/97) Updates of the national plan On-going communication

Future of Euro Preparations: 1.Coordination of Preparations overall structure of institutional arrangement for euro preparations efficient mechanisms of euro preparations governance the ways how to realize active involvement of various stakeholders in the process specific coordinating rules for public sector (central vs. local administration, etc.) 2.Monitoring of Preparations the ways of monitoring and safeguarding the progress of euro preparations in all the relevant sectors schemes for stimulation of preparatory activity in the public & business sector 3.Consumer Protection especially the danger of unjustified price increases and the ways how to eliminate it as much as possible dual display of prices, price monitoring fair pricing agreements with retailers; code of conduct involvement of consumer protection associations

Future of Euro Preparations: 4.Communication Strategy -drafting of the communication strategy -information campaign before and after setting the date -mistakes to be avoided -specific communication concepts for various public, social and commercial subjects (how to define them etc.) 5.Legal Aspects -legal issues: questions of the umbrella law and the particular amendments of special laws -specific areas: legal aspects of rounding and smoothing, dual display of prices etc.

Thank you for your attention. Petr Očko Government Appointed National Coordinator for Euro Introduction