Euro currency: Earlier start urged to avoid long period of double circulation

By Emma Tucker in Brussels

The introduction of euro notes and coins should be brought foward by several months to the autumn of 2001, to avoid the possible mayhem of a January launch coinciding with post-Christmas discount sales. The idea was floated by Mr Yves-Thibault de Silguy, the commissioner for monetary affairs, who met business leaders yesterday to discuss the practicalities of switching from national currencies to the euro.

Under the current timetable the euro will be introduced in countries qualifying for the single currency on January 1 1999, but only as a unit used by banks and other financial institutions.

Notes and coins are due to come into circulation on January 1, 2002, with national currencies remaining legal tender for another six months.

But yesterday Mr de Silguy, who was warned by consumer groups that a Christmas and New Year introduction of the euro would lead to chaos, said the launch of the notes and coins should be brought forward.

He also warned against the dangers of leaving national currencies circulating for too long, saying that two currencies would generate confusion and extra costs.

"Take for example small businesses that only have one cash register. There are several million such businesses in Europe. How will they be able to manage a prolonged period of double circulation?" he said.

The current handover is seen as lasting six months, but Mr de Silguy said it should be shortened to just a few weeks.

The suggestion went down badly with the European Vending Association.

It said that over 3m vending machines needed to be altered to take the euro coin, each alteration taking an hour. The association thinks three years will be needed once a final decision for the coin has been chosen to produce the necessarysoftware and hardware upgrades.

During the day Ms Emma Bonino, the consumer affairs commissioner, called on governments to strip the euro debate of alienating jargon and redouble their efforts to educate consumers.

"We can tell people that there will be macroeconomic benefits from the single currency if we want," she said. "But my mother does not know what macroeconomic is. She wants to know what she will have to do when she goes to buy her vegetables."

She also reminded the meeting that in several countries, such as Italy, the national currency does not divide into "centimes".

"People in these countries will have to relearn how to count their money," said Ms Bonino.

Mr de Silguy said he would like to be able to present definitive decisions on issues such as when to introduce the notes and coins and how long to leave national currencies in circulation by May next year.

"We must prepare," he said. "There are only 595 days left."