Annexes to COM(2023)341 - Introduction of the euro in Croatia - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2023)341 - Introduction of the euro in Croatia. |
|---|---|
| document | COM(2023)341 |
| date | June 30, 2023 |
The communication campaign aimed to inform, reassure and engage with citizens on the changeover. It targeted various groups, with a special emphasis on vulnerable and sensitive groups such as language minorities, the elderly, citizens living in remote and sparsely populated areas, as well as blind and partially sighted people.
The campaign involved a mix of communication tools and activities, including a website (euro.hr), TV and radio spots, billboards, a toll-free phone number, promotional materials, a brochure (1.45 million copies) distributed to households in cooperation with the Croatian Post, educational material for children, ‘Euro days’ events in different cities and the ‘Euro on wheels’, a travelling euro exhibition with stops in 27 cities across the country.
Most activities were performed in cooperation with external contractors, with the completion of six public procurement processes allowing the authorities to benefit from the services of specialised companies. While the limited time available between the positive convergence report and the changeover posed challenges, the cooperation with contractors was judged satisfactory by the Croatian authorities.
Considering public concerns about the possible effects of the changeover on prices, a close media monitoring was done, and inspections were undertaken by the Croatian authorities during the changeover to monitor and address abusive price practices. Such government activities, combined with the publication of actual inflation data for the changeover period on 1 February, alleviated the concerns in part, at least judging from the more limited number of press articles reporting cases of changeover related price increases.
The communication campaign contributed to a smooth changeover to the euro, as confirmed by a Eurobarometer survey showing that 88% of citizens felt well-informed on the introduction of the euro; 61% found the process to be smooth and efficient; and 81% said that they experienced no problems when exchanging kuna cash into euro or when they withdrew cash from banks in the first week16. Moreover, the Croatian authorities report that according to the third wave of the national public opinion polls carried out in February 2023, around 64% of respondents support the introduction of the euro, while 30% oppose its introduction. 91% felt well-informed on the introduction of the euro, 87% indicated television as their main source of information against 36% for radio and 38% for social networks.
In addition to supporting Croatia’s national communication campaign with advice and financial resources, the Commission implemented its own communication activities in the run-up to and during the changeover, in line with what was done for previous changeovers.
6. Conclusions on the Croatian Euro Changeover and Recommendations for future Euro Changeovers
The cash changeover in Croatia was well prepared and organised. Financial institutions, businesses and citizens were adequately supplied with euro cash in advance of the changeover.
- In future changeovers, euro coins, which are produced by the national mint, should be tested in vending machines used across the euro area as early as possible to ensure their fitness for circulation upfront and avoid potential delays in minting and frontloading of the coins.
The cash changeover in Croatia went smoothly. ATMs and point of sale-terminals were converted on time. Financial institutions, FINA and post offices coped well with the extra workload during the dual circulation period. Retailers coped well with the challenges of the changeover process and the handling of two currencies at the same time. They were well supplied with euro cash and pursuant to a Commission survey, already on 2 January 2023, 81% of the citizens polled received change in euro only.17
The conditions of the Croatian changeover were particularly challenging compared to recent changeovers because the changeover took place in a high inflation environment. Croatia started the dual display of prices in September 2022 and set up a Business Code of Ethics in line with the recommendations of the Commission18 to which every retailer, business or service provider could subscribe.
The Croatian authorities should continue with intensive price inspections to ensure that the prices are correctly indicated, curb unwarranted increases and, where applicable, enforce the duties under the Act on the Introduction of the Euro, Consumer Protection Act and Business Code of Ethics.
- In future changeovers, price monitoring should be especially intense in respect of sectors most at risk, so that unwarranted price increases can be identified swiftly. This would enable to better focus inspections and policy towards offenders, while also reducing the prominence of anecdotal evidence and dispelling unfounded concerns in the public discourse.
- In future changeovers, attention should be paid to rolling out a Business Code of Ethics or the like as early as possible to reach a maximum of businesses. Smaller and micro enterprises as well as service providers should be encouraged actively to join such a scheme because by experience these businesses are the most reluctant to join. National authorities should increase the number of price inspectors during the changeover period and in the end of the year period in particular.
As dual price indication comes with a cost and citizens are relatively quickly acquainted with the single currency, the obligatory period of dual price indication could be shortened to one year rather than last until the 31 December of the year of the changeover.
- Especially where a fair euro introducer scheme such as the Business Code of Ethics is set up, reaches a maximum of businesses, and runs effectively, the dual price indication would start as usual as soon as the conversion rate is known and could end after one year.
The communication and public awareness campaign contributed to a smooth changeover to the euro in Croatia. 88% of citizens felt well informed of the introduction of the euro, 61% found the process to be smooth and efficient and 81% said that they experienced no problems when exchanging kuna cash into euros or when they withdrew cash from banks in the first week.
- Given the relatively short time between a positive convergence report and the changeover date, Member States to change over to the euro should build on Croatia’s experience in procuring their communication needs by dividing the contract in lots to cope best with possible delays and to ensure contingency.
1 Council Decision (EU) 2022/1211 of 12 July 2022 on the adoption by Croatia of the euro on 1 January 2023 (OJ L 187, 14.7.2022, p. 31–34).
2 The first-wave Member States adopted the euro according to the 'Madrid Scenario', which involved a transitional period of three years (one year for Greece).
3 Lithuania, Latvia, Estonia, Slovakia and Slovenia also had a two-week dual circulation period, whereas in Malta and Cyprus it was one month.
4 Flash Eurobarometer 518, field work carried out 16 to 19 January 2023, available at: http://ec.europa.eu/economy_finance/articles/pdf/fl412_report_final_en.pdf
5 Flash Eurobarometer 516, carried out in Croatia between 29 and 30 December 2022, p.3. https://economy-finance.ec.europa.eu/euro/eu-countries-and-euro/croatia-and-euro_en
6 Flash Eurobarometer 518, see footnote 4.
7 The corresponding figures were 95% in Estonia, 90% in Slovakia, 88% in Cyprus, 85% in Malta and 96% in Slovenia.
8 Flash Eurobarometer 517, field work carried out 2 to 14 January 2023, available at: https://economy-finance.ec.europa.eu/euro/eu-countries-and-euro/croatia-and-euro_en
9 Flash Eurobarometer 517, page 20.
10 Flash Eurobarometer 518, see footnote 4.
11 Flash Eurobarometer 518, see footnote 4.
12 Flash Eurobarometer 518, see footnote 4.
13 Flash Eurobarometer 518, see footnote 4.
14Falagiarda, M., Gartner, C., Mužić I., Pufnik, A. (2023), "Has the euro changeover really caused extra inflation in Croatia?”, SUERF Policy Brief, No. 571, April 2023
15Prices grew by 3.6% in domestic and household services, 3.4% in restaurants, cafés and the like, 2.9% in hairdressing salons and 2% in recreational and sporting services. HICP growth rates for January can be calculated as of 1999 in Croatia.
16 Flash Eurobarometer 518, Croatia after euro changeover, 26 January 2023.
17Flash Eurobarometer 517, see footnote 8.
18 Commission Recommendation of 10 January 2008 on measures to facilitate future changeovers to the
euro (OJ L 23, 26.1.2008, p. 30).
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