TRAINING PACK
- The Changeover to the EURO
- Speakers Notes
One of the main tasks of the Euro Changeover Board of Ireland is to provide public information on the changeover to the euro so the Board has prepared this training pack. It contains:
- a presentation of nine slides setting out the key facts about the changeover. The presentation is supplied on disc in powerpoint and on acetates.
- a note for the presenter on each slide and a set of questions and answers for each slide.
The pack is also available for downloading from the ECBI website at www.euro.ie.
Information materials for distribution at presentations can be obtained from the ECBI at locall 1890 20 10 50.
We in the Board hope that the presenters will find the training pack useful and that it will help their audience to understand how the changeover to the euro will work. We very much appreciate the work that presenters will do to explain the changeover.
SLIDE 1 - THE EURO TIMETABLE
Objectives:
- to give the audience some background about the euro
- To explain the transitional period and prepare the audience for learning about the cash changeover
The presenter should convey the following messages:
- The euro is the single currency of the 11 EU Member States, including Ireland, that are participating in Economic and Monetary Union (EMU). The 11 participating States are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Greece will join EMU on 1 January 2001 and plans to introduce euro notes and coins on 1 January 2002.
- The euro came into being on 1 January 1999 when the initial 11 Member States that joined EMU permanently locked the exchange rate of their currency against the euro.
- The three year period from 1 January 1999 to 31 December 2001 is called the transitional period. During this period the euro can be used for cashless transactions such as cheques, direct debits and credit transfers; cash transactions during this period will remain in Irish Pounds.
- On 1 January 2002 non-cash transactions will switch to euro; and euro notes and coins will be introduced and Irish Pound notes and coins will begin to be withdrawn.
Questions and Answers
| Q. |
Why do we have to wait three years for euro notes and coins? |
|
A. |
It takes a long time to produce the very large quantities of euro notes and coins which will be needed to replace national currencies. For example, in Ireland the Central Bank will be producing about 200 million euro notes and about 1000 million euro coins. Time is also needed to put in place the other arrangements needed for the changeover. |
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Q. |
What kind of preparations are taking place? |
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A. |
The Euro Changeover Board of Ireland (ECBI) is overseeing the implementation of changeover at national level and providing public information about it. Forfás is running the EMU Business Awareness Campaign to help business prepare for the euro. Within this framework all sectors should now be planning for the changeover. |
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Q. |
Will we see euro notes and coins before 1 January 2002? |
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A. |
You can already get pictures of what the euro notes and coins will look like. The actual notes and coins will not come in until 1 January 2002 |
SLIDE 2 - THE CASH CHANGEOVER, THE KEY DATES
Objectives:
- To get across the key dates in the cash changeover
- To introduce the basic mechanism of the changeover process.
The presenter should convey the following messages:
- The date when euro notes and coins will come into circulation - 1 January 2002
- From this date, there will be a dual circulation period, during which the use of euro notes and coins will be increasing, and the use of Irish notes and coins will be decreasing as they are withdrawn and not re-issued into circulation
- It is expected that the bulk of cash transactions will be in euro by the end of two weeks.
- The dual circulation period will end at midnight on Saturday 9 February 2002, when legal tender status will be withdrawn from Irish notes and coins. This means that, from that date, retailers will not be obliged to accept Irish notes and coins.
For further background, please refer to the booklet "The Introduction of the euro: Ireland's Cash Changeover Plan for 2002".
Questions and Answers
| Q. |
Why is the dual circulation period ending on a Saturday night? |
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A. |
Put simply, because Saturday night is the end of the retail "week" for shopkeepers. |
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Q. |
Will I be able to use my Irish notes and coins in shops right up to 9 February, 2002? |
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A. |
Yes, but it is recommended that:
- From now on you should use any Irish coins left lying in jars, drawers
- You should avoid having excess cash on hands on 1 January 2002
- While the changeover starts, you should use your remaining Irish notes and coins first and get euro notes and coins through the various mechanisms outlined in the next slides.
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Q. |
Will the banks, post office, retailers etc. be able to cope with the demand for euro notes and coins early in January, 2002? |
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A. |
A lot of careful planning is being done to ensure that adequate supplies of euro notes and coins will be available through banks, post offices, retailers etc. |
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Q. |
Does the dual circulation period come to an end in all euro countries across the entire eleven countries on 9 February, 2002? |
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A. |
No, every country was free to set its own date according to national circumstances. Most countries set the end of February. [Netherlands set 28 January, while Ireland is setting 9 February and France is setting 17 February] |
SLIDE 3 - THE CASH CHANGEOVER THE BASIC MECHANISM
Objectives:
To explain the basic mechanism of the cash changeover
The presenter should convey the following messages
- On 1 January 2002, accounts (in banks, building societies, post offices and credit unions) will be automatically converted to euro free of charge
- From then on, cash going out of the financial system into the economy will be in euro
- Also from then on, IR£ cash coming back into the financial system from the economy will be retained and not reissued
- It is expected that the bulk of cash transactions will be in euro by the end of two weeks (1 January 2002 is a Tuesday, so that means by about Tuesday 15 January 2002)
Questions and Answers
The question and answers likely to arise about this slide are covered in the material on the "what key players will do" slides which follow.
SLIDE 4 - THE CASH CHANGEOVER WHAT KEY PLAYERS WILL DO (1)
Objectives:
- To explain what the key players (banks, post offices etc) will be doing to ensure a smooth changeover to euro cash
- To emphasise that people need do nothing out of the ordinary
The presenter should convey the following messages:
- Financial institutions (banks, building societies, post offices, credit unions) will convert all IR£ accounts to euro at the conversion rate 1 euro = £0.787564, automatically and free of charge, on 1 January 2002.
- From then on, cash withdrawals from financial institutions will be in euro only
- ATMs will dispense euro notes
- Pay, pensions and salaries will be in euro (whether paid in cash or not)
- Social Welfare payments will be in euro (again, whether paid in cash or not)
- There is no need for people to do anything out of the ordinary. Simply use any remaining Irish cash. If you pay for anything in Irish pounds, any change will be in euro. The next time you withdraw cash from your bank, building society or post office account you will receive euro. Similarly, wages, social welfare payments, pensions, etc will be in euro.
For further background, please refer to the booklet "The Introduction of the euro: Ireland's Cash Changeover Plan for 2002".
Questions and Answers
| Q. |
Will the financial institutions charge people for converting accounts to euro? |
|
A. |
No. Banks, building societies, post offices and credit unions will convert all IR£ accounts, free of charge, using the conversion rate 1 euro = £0.787564 |
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Q. |
I get a pension, paid through my bank, from a country outside the euro zone. How will I be affected after 1 January, 2002? |
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A. |
From 1 January 2002, the bank will convert your pension into euros (at whatever the foreign exchange rate is at the time between the euro and the currency of the pension) and pay you in euro. |
SLIDE 5 - THE CASH CHANGEOVER WHAT KEY PLAYERS WILL DO (2)
Objectives:
- To explain what will happen in retail outlets from 1st January 2002.
- To explain how individuals can exchange Irish notes and coins for euro by means of cash exchange and by lodgement with banks etc.
The presenter should convey the following messages:
- From 1st January 2002, retailers will charge in euro only.
- From 1 January 2002, retailers will accept Irish cash as payment, but will give change in euro only
- Retail organisations have promised to carry out the changeover fairly and will seek no advantage from the conversion. [And people can help themselves by building a scale of values in euro so that they will know, roughly, what the euro equivalents of Irish pound amounts are. Also, there will be plenty of information and conversion charts available].
- Banks, building societies, post offices and credit unions (where feasible, and for members only) will exchange household amounts of Irish notes and coins (up to an overall total of £500 per individual) for euro free of charge during the dual circulation period and for a time afterwards.
- Banks, building societies, post offices and credit unions (for members only) will accept lodgements in Irish pounds during the dual circulation period and for a time afterwards.
- The Central Bank will give value in euro for Irish notes and coins indefinitely.
For further background, please refer to the booklet "The Introduction of the euro: Ireland's Cash Changeover Plan for 2002".
Questions and Answers
| Q. |
What should I do if my local retailer puts up prices on 1 January, 2002? |
| A. |
The Cash Changeover Plan contains a commitment from a large number of retail organisations that retailers will carry out the changeover fairly and will seek no advantage from the conversion. Also, many retailers are subscribing to either the National Code of Practice on Dual Pricing or sectoral codes which involve similar commitments. Such codes be they the National Code or sectoral codes approved by the Director of Consumer Affairs have a key part to play in informing consumers about the euro and through familiarisation assist consumers in monitoring prices.
In addition, under the codes retailers will as far as practicable dual display their prices (that is, show them in euro as well as in IR£) from 1 October 2001 until after the end of the dual circulation period, so people will be able to see the IR£ and the euro price side by side. In addition, there will continue to be competition among retailers for customers and price differences will be just as visible as they are now. And retailers will be anxious to prove to customers that they will be carrying out the changeover fairly.
However, if a customer feels that a retailer is not carrying out the changeover fairly, he or she should take the matter up with the retailer in the first instance. If no satisfaction is forthcoming, and if the retailer is a subscriber to a retailers' organisation, the customer should contact that organisation. If there is still no satisfaction, or if the retailer is not a subscriber to a retailers' organisation, the customer should inform the Office of the Director of Consumer Affairs, which will investigate the complaint. And of course customers can simply decide not to shop in any retail outlet that is not carrying out the changeover fairly.
Subscribers to the National or approved codes will be entitled to use a logo which will contain contact points for enquiries.
One final point: incomes, savings and prices in euro will look higher than in Irish pounds. For example, ten pounds converts to twelve euro and seventy cent. But although the numbers will change on conversion from Irish pounds to euro, the value will stay the same. It is like temperatures: 20 degrees celsius converts to 68 degrees Fahrenheit, but they are the same temperature. So incomes, savings and prices converted from Irish pounds to euro will look bigger, but the value of them will be the same. |
| Q. |
What do I do if after 1 January, 2002 a retailer asks me to accept Irish notes and coins in change? |
| A. |
A major effort will be made in advance of 1 January, 2002 to ensure that retailers will have an ample supply of euro notes and coins, so this situation should not arise. |
| Q. |
Do I have to be a bank customer to be able to exchange IR£ cash for euro cash at a bank? |
| A. |
No, the banks, building societies and post offices will exchange IR£ cash for euro cash for non-customers as well as customers. [Credit unions can only deal with their members; and not all credit unions will be able to handle cash exchange, because not all of them handle cash. If you are a credit union member, you should check with your credit union]. |
| Q. |
How will the banks etc operate the £500 limit? |
| A. |
This is a matter for the banks and will be confirmed nearer to the time by individual institutions. |
SLIDE 6 - THE VALUE OF THE EURO
Objectives:
- To convey the value of the euro for converting IR£ amounts to euro
- To give people a rough rule of thumb for converting IR£ amounts to euro
- To encourage people to build a scale of values for themselves in euro.
The presenter should convey the following messages:
- 1 euro = just under 79p (1 euro = £0.787564, to be exact)
- So a pound will get you one euro and twenty seven cents
- The formal rule is: to convert from pounds to euro divide the Irish pound amount by 0.787564 and round the resulting euro amount to 2 decimal places i.e. to cent.
- A rough rule of thumb is: - to convert an IR£ amount to euro, add a quarter
The presenter should encourage the audience to build a scale of values for themselves in euro. For example, the audience can be encouraged to use this rule of thumb to work out a rough euro value for £4, £8 etc. For example:
| £4 |
= |
roughly 5 euro |
| £8 |
= |
roughly 10 euro |
| £12 |
= |
roughly 15 euro etc |
Questions and Answers
| Q. |
Can I use 79p in doing conversions? |
| A. |
79p is not entirely accurate and is used as a rough measure, because people are more likely to remember it. However, in financial transactions and price conversions the full conversion factor of 0.787564 must always be used. |
| Q. |
Will I lose money because the euro works out at just under 79p? |
| A. |
No. A pound will get you one euro and twenty-seven cents. So, while prices, savings and incomes will look higher in euro, the value and purchasing power of your money remains the same; it is just that you will be measuring it in a different way. |
SLIDE 7 - THE EURO NOTES AND COINS
Objectives:
- To familiarise the audience with euro notes and coins.
- To make it clear that there are 100 cents to the euro.
To familiarise the audience with the notes and coins the presenter should distribute the "Euro notes and coins : press out pictures" leaflet to the audience and get them to examine the notes and coins. A good way of getting the audience involved in this is to get them to compare the notes and coins with IR£ notes and coins, both in their denominations (which are quite similar in the two currencies - the IR£ has (only) five notes £5, £10, £20, £50 and £100 - and seven coins - 1, 2 5, 10, 20 and 50p and £1) and in size and colour.
Once the audience is familiar with the pictures of the notes and coins the presenter can go on to deal with values of the notes and coins.
First, the value of each note.
| Euro |
IR£ |
(Roughly) IR£ |
| 5 |
3.94 |
4 |
| 10 |
7.88 |
8 |
| 20 |
15.75 |
16
|
| 50 |
39.38 |
40 |
| 100* |
78.76 |
80 |
| 200* |
157.51 |
160 |
| 500* |
393.78 |
400 |
* These notes are unlikely to be in common use so it is not necessary to dwell on them.
Secondly, the coins. The audience should be told that one side of the euro coins will be the same in all euro Member States. The other side will show the twelve stars of the EU flag and the year, and also a national emblem. In Ireland's case the national emblem will be the harp and the word Éire.
The values of the coins (after rounding) is as follows:
| cent /euro |
IR£ |
| 1 cent |
1p |
| 2 cent |
2p |
| 5 cent |
4p |
| 10 cent |
8p |
| 20 cent |
16p |
| 50 cent |
39p |
| 1 euro |
79p |
| 2 euro |
£1.58p |
Questions and Answers
| Q. |
Will the euro notes be the same in all Member States of the euro zone? |
| A. |
Yes. |
| Q. |
Will I be able to use the euro notes in all the Member States of the euro zone? |
| A. |
Yes. |
| Q. |
Will euro notes be available before 1 January, 2002? |
| A. |
You can already get pictures of what the euro notes and coins will look like. The actual notes and coins will not come in until 1 January 2002. |
| Q. |
Some of the euro notes are of a very high value. Why do we need notes worth 200 euro and 500 euro? |
| A. |
Remember that the euro will be the currency of twelve Member States and a number of those currently have high-value banknotes. But we need not expect to see many of those high-value notes! |
| Q. |
Who designed the notes and what are the designs intended to depict? |
| A. |
The euro banknotes were designed by an Austrian artist, Robert Kalina. The text of the press-out notes and coins leaflet gives more detail on the designs and what they symbolise. |
| Q. |
Will euro coins with the Irish face be acceptable in other euro Member States? |
| A. |
Yes, and likewise euro coins with the other national faces will be acceptable in Ireland. |
| Q. |
Will meters, etc. be able to take euro coins? |
| A. |
Yes, coin accepting machines will be adjusted to take euro coins. |
| Q. |
Will coins be available before 1 January, 2002? |
| A. |
You can already get the pictures of what the euro notes and coins will look like. The actual notes and coins will not come in until 1 January 2002 |
| Q. |
What will happen if I still have Irish coins after 9 February, 2002? |
| A. |
The cash exchange, and lodgement, arrangements being provided by banks, building societies, post offices and credit unions will continue for a time (not yet specified), after 9 February 2002. In addition, the Central Bank will exchange notes and coins for euro indefinitely. |
| Q. |
What should I do if I know an old person who has a lot of IR£ cash? |
| A. |
Even apart from the euro changeover, it is not a good idea for anyone to have a lot of cash in their possession. You should encourage anyone who has a lot of cash to put it in a secure place (e.g. Post Office, Bank, Building Society, Credit Union) as soon as possible. |
SLIDE 8 - WHAT YOU SHOULD DO NOW
Objectives:
- To summarise the key messages
- To get the audience thinking about using up any hoarded coin
The presenter should convey the key messages set out in the slide. In particular, the message about using up hoarded coin could be used to get the audience to focus on something practical that can be done from now on to help make the changeover easier for everyone.
Questions and Answers
As this and the following slide are essentially summaries of the messages in the previous slides, any questions and answers likely to arise about these slides are covered in the notes on the previous slides.
SLIDE 9 - FURTHER INFORMATION
Objectives:
- To tell the audience where they can get further information.
The presenter should encourage the audience to study the information materials provided after the presentation and to use the additional sources of information available, including those from the Euro Changeover Board of Ireland. The address etc of the Office of the Director of Consumer Affairs are also provided, for consumer queries. The presenter could also refer to the European Consumer Centre as an additional source of information for consumers.
Questions and Answers
| Q. |
How can I keep myself up to date on developments regarding the euro? |
| A. |
If you have internet access keep an eye on the website of the Euro Changeover Board of Ireland, which is updated regularly. Also watch and listen for television, newspaper and radio advertisements about the euro, which will be running in the period from now to January 2002 and through the dual circulation period up to 9 February 2002.
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