THE FINANCE Ministry yesterday defended its euro information campaign following calls by the European Commission to speed up the process.
In its latest report on the level of preparedness in Cyprus and Malta, which both adopt the euro on Janaur 1, the Commission said Malta’s communication activities on the euro were “exceptionally comprehensive and of a very high quality”.
But while Cyprus achieved progress in its practical preparations for the introduction of the single currency, “it should speed them up”.
“Particular attention should be given to the effective and country-wide implementation of the Fair Pricing Code and of the communication campaign on the euro,” the report said.
Yesterday, Andreas Charalambous, Director of Finance at the Ministry, who is overseeing the changeover, said the Commission’s recommendations were still being reviewed.
“The Commission plays a useful role in identifying problems, but I’m not sure if what’s in the media is accurate picture,” said Charalambous.
“They [the Commission] acknowledge that Cyprus is doing well and progressing. They also identify areas where we can accelerate. We do feel the campaign is on track and hope for some feedback in the Commission’s next report.”
In a statement attached to the report, the EU said only an acceleration of the campaign would ensure that the more vulnerable sections of the population and the public at large understood the monetary change and become rapidly familiar with the euro coins and banknotes.
“Enhanced familiarity is key to raising awareness of the benefits of being part of the euro area and to give reassurance about the changeover process,” the statement said.
The most recent survey of public attitudes to the euro in Cyprus shows that some 85 per cent of the public still fear being ripped off by traders during the changeover process.
The Ministry has focused much of its campaign towards trying to alleviate those fears, promising that a series of watchdogs would be monitoring prices. It has also got a large number of businesses to commit to a fair pricing strategy. Some have said they would round down their prices.
The Commission said it its report that according to a survey among enterprises, conducted for the Commission in January 2007, almost one out of six enterprises indicated that they would adjust its prices upwards.
In the hotel and restaurants sector, as many as 27 per cent of the enterprises mentioned that they envisaged such action.
The report makes it clear that much more needs to be done in Cyprus.
The National Changeover Plan was still short of detail in many respects, and several elements needed to be further defined, it said, even though some progress had been achieved in the last few months.
Euro facts
1. An updated version of the National Changeover Plan, approved in July 2006, was adopted by the Ministry of Finance, with the consent of the Central Bank, on June 21, 2007.
2. The Central Bank updated the Cash Changeover Plan, national legislation on the introduction of the euro was adopted and the Fair Pricing Code was launched.
3. Dual Pricing will come into effect from September 1 until September 30, 2008.
4. The details of the frontloading operation have been specified. Frontloading of euro coins and banknotes will start on October 22 and November 19, 2007, respectively, and will be finalised by mid-December 2007.
5. Sub-frontloading or euro cash to retailers is envisaged to start at the same time as the frontloading operation. In addition, 40 000 pre-packed coin kits containing a suitable structure of denominations for cash transactions in the first days after €-day (starter-kits), worth € 172 each, will be available to businesses and retailers from December 3, 2007; 250 000 mini-kits, worth £10 each, will be available to the general public from the same date.
6. Around 70 per cent of the credit institutions’ cash dispensers (ATMs; approximately 500 in total) will be converted to dispensing exclusively euro banknotes (€ 10 and 20) within the first hour of €-day, while the remaining 30 per cent will be converted by noon on the same day at the latest.
7. As from €-day, retailers will give change in euros only.
8. On January 1, 2008, which is a bank holiday, a number of centrally located bank branches will open in every district to facilitate the exchange of Cyprus pounds into euros.
9. An intensified advertising campaign for the use of hoarded cash is planned for September 2007.