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Preparations for Euro Introduction in the Czech Republic €

Preparations for Euro Introduction in the Czech Republic €. 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

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Preparations for Euro Introduction in the Czech Republic €

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  1. Preparations for Euro Introduction in the Czech Republic€ Petr Očko National Coordination Group for Euro Introduction Ministry of Finance of the Czech Republic March 2007

  2. 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

  3. 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)

  4. National Coordinator for Euro Introduction (Ministry of Finance) 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 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 (Ministry of Informatics) WG Communication (Ministry of Finance / Czech National Bank) Institutional Framework

  5. 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

  6. 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

  7. Basic Principles • Legal continuity • Dual display – time limited • Fixed conversion rate • Consumer protection • Preventing perceived inflation • Minimizing the costs • Communication

  8. 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

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

  10. 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

  11. 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

  12. 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.

  13. Thank you for your attention.euro@mfcr.cz Petr Očko Government Appointed National Coordinator for Euro Introduction petr.ocko@mfcr.cz

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