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NATIONAL EURO CHANGEOVER PLAN FOR SR

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NATIONAL EURO CHANGEOVER PLAN FOR SR

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  1. NATIONAL EURO CHANGEOVER PLAN FOR SR Martin Pánik

  2. Contents • Introduction • Euro changeover in the SR • Basic principles • Time table of euro changeover in SR • The Maastricht Criteria • The Changeover Plan assumptions • Procedure of the European institutions in adopting a new eurozonemember • Proposal of Slovak coins

  3. Introduction • Strategy forAdopting theeuro in the SR. • Specification ofthe Strategy forAdopting theEuro in the SR. • The NBS hasacceded to theAgreement on theOperatingProcedures ofERM II. • A public tenderfor the Slovakeuro coins.

  4. Contents • Introduction • Euro changeover in the SR • Basic principles • Time table of euro changeover in SR • The Maastricht Criteria • The Changeover Plan assumptions • Procedure of the European institutions in adopting a new eurozonemember • Proposal of Slovak coins

  5. Basic Principles • Big Bang scenario • Conversion rate (EUR 1 = SKK XX.XXXX) • Principle ofcontinuity ofcontracts • Rounding rules • Principle of notharming thecitizen • Avoiding priceincreases andperceivedinflation,monitoring andcontrol

  6. Time table of euro changeover in SR • Stage I – after the entry into the ERM II • Stage II – membership in the ERM II up until the decision on the SR’s acceptance into the eurozone • Stage III – between the decision on SR’s acceptance into the eurozone and the entry itself • Stage IV – following entry into the eurozone

  7. The Maastricht Criteria • Public finance • Inflation: • Long-term interest rate stability: • Exchange rate stability:

  8. The Changeover Plan assumptions • 2007 - Fulfillment of the Maastricht Criteria • June 2008 - Decision of theCouncil of theEU • Possibility tomakepreparations forminting coins • 1 January 2009 - Possibility toperformfrontloading.

  9. Procedure of the European institutions in adopting a new eurozonemember • (according to Articles 121 – 123 of the Treaty establishing the EuropeanCommunity ) • 7 paragraphs

  10. Procedure of the European institutions in adopting a new eurozonemember 1) The ECB and the European Commission will prepare convergence reports whichwill assess the fulfillment of the Maastricht Criteria. The convergence reportswill be prepared at the request of the country, or every two years

  11. Procedure of the European institutions in adopting a new eurozonemember 2. The Commission will propose to the Council to abrogate the member state’sderogation and therefore to accept it as a eurozone member.

  12. Procedure of the European institutions in adopting a new eurozonemember 3. The Council will consult the Commission proposal with the EuropeanParliament.

  13. Procedure of the European institutions in adopting a new eurozonemember 4. The Council, in the composition of heads of state or governments, will discussthe Commission proposal.

  14. Procedure of the European institutions in adopting a new eurozonemember 5. The Council (probably in the ministers of finance composition) will decide by aqualified majority on the abrogation of the derogation (following approval of theTreaty establishing a Constitution the Council will be able to decide only after arecommendation of a qualified majority of eurozone members – these countrieswill have six months to decide).

  15. Procedure of the European institutions in adopting a new eurozonemember 6. The Council, at the proposal of the Commission and after consultation with theECB, will decide on the conversion rate (of the koruna to the euro). The Councilwill decide unanimously, composed of eurozone members and the acceding state.

  16. Procedure of the European institutions in adopting a new eurozonemember 7. The Council will change any Regulations concerning the euro (1103/97 oncertain provisions relating to the introduction of the euro and 974/98 on theintroduction of the euro).

  17. Procedure of the European institutions in adopting a new eurozonemember • In the case of Greece (1) the ECB prepared the convergence report on 18 April 2000,the Commission prepared the convergence report on 3 May and (2) at the same timerecommended to the Council that the derogation be abrogated , (3) the EuropeanParliament voted on 18 May, (4) on 30 May the Commission submitted proposalsregarding the conversion rate of the Greek drachma, (5, 6) on 19 June the Councildecided to abrogate the derogation and set the conversion rate, (7) on 27 Novemberthe Council amended the remaining regulations on the euro. Greece adopted the euroon 1 January 2001.

  18. Proposal of Slovak coins