Gearing up for a smooth changeover

Currency changeover is gradually attracting the attention of more and more businesses. The practical preparations to ensure a smooth changeover keep unfolding and the NECC is stepping up its efforts to disseminate as widely as possible the relevant information to businesses. The public, on the other hand, is increasingly becoming acquainted with the euro through the growing number of retail outlets that have voluntarily started to display their prices in both the lira and the euro.

Additionally, the government has also rolled out dual display across all its departments and agencies as well as within its wider public sector.

This means that all bills, payments and administrative documents issued by the government, including the salaries paid to public officers, also show the lira counter value in euro.

Dual display is a means to help the consumer start "thinking in euro". Seeing the value of one's purchases in two currencies slowly pushes everyone to start establishing a scale of reference values. A large number of retail outlets have already been assigned the FAIR mark and many others are working hard towards obtaining this logo. The presence of the FAIR mark is an indication of the retail sector's strong commitment towards fair pricing and transparency.

The FAIR initiative has also brought with it a number of other benefits and has offered assistance to retailers preparing for the euro changeover as well as to consumers.

Those businesses subscribing to FAIR receive free training as well as practical assistance to help them convert the prices of their items or services.

Conversion tables are also provided in order to be handed out to customers. When pricing items, a retailer is expected to use the central parity rate of 0.4293 and to round prices to the nearest cent. Legal Notice 4 of 2007, issued under the Euro Adoption Act, regulates the FAIR initiative and dual display both during the voluntary and also the period of mandatory dual display.

Having the European Commission asking the NECC to help out the Cypriots coming up with a similar initiative such as FAIR in their country is surely a signal that we are on the right track. The support of all retailers' organisations has contributed to the success of this initiative.

These initiatives are all contributing in ensuring that the euro is introduced in a smooth and efficient manner. However, cooperation is required from all the stakeholders concerned. Businesses, which are the primary stakeholders in this changeover process, need to ensure they are geared up to introduce the euro. A number of tools have been published by the NECC. The "checklist for business organisations" guides a business, be it a family-run retail outlet or a multi-outlet group of companies, in its preparations for the euro throughout its various corporate functions.

In addition, regular meetings are held with various businesses in order to assist them more closely during their changeover preparations. A training programme is also being prepared to assist businesses when making euro cash transactions in the future and to help them understand the significance of dual display and the FAIR initiative. Specific training on IT systems will also be provided by a number of experts. A number of information seminars are being organised together with various associations such as the Chamber of Commerce and Enterprise and the Chamber for Small and Medium Enterprises - GRTU.

Following Malta's formal request on February 27 for a convergence assessment by the European Commission and the European Central Bank, the government expects to be given the green light to confirm its entry date into the eurozone. In the likely event of a positive assessment, the July ECOFIN Council will lift Malta's derogation on membership in the Economic and Monetary Union, confirm the target date of January 2008 and establish the irrevocably fixed conversion rate.

While Malta is awaiting the green light, the NECC will be intensifying the rhythm of its information and education campaign while also working on the technical preparations necessary for our country to adopt the world's second strongest country - the euro.

Mr Mangion is manager, public & media relations, the National Euro Changeover Committee.