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In Their Hands: Europeans Get Ready for the Euro
"It's like switching from Celsius to Fahrenheit: It doesn't
get warmer or colder. You don't get richer or poorer."
- An EU official on converting to the euro
Starter Kits
Dagobert Hoff, a senior citizen in Hamburg, is getting ready for the
euro in his own way. Since he can't lay hands on the new banknotes
until January 1, 2002, he's photocopied pictures of them to familiarize
himself with their look. Other Germans plan to do this by ordering
a selection of real coins in advance. "People are curious. They
want to see the coins for themselves," says Holger Berndt, member
of the board of the German Savings and Checking Association. To oblige
them, on December 17 the Deutsche Bundesbank (Federal Reserve Bank
of Germany) made available more than 50 million "euro starter
kits," each containing 20 euro coins worth
a total of €10.23.
Practicing
Individuals can do more than collect coins to ensure a smooth rollover
on "€-day." Learning the value of the euro notes and coins
before January 1 has helped people feel at ease with the changeover. Consumers
have made an effort to look at the euro prices which have been widely
posted next to DM prices in Germany, or online. Taking the time to figure
out the euro equivalents of monthly income, travel budgets, plus a few
basics, such as subway or taxi fare, or room rates at a favorite hotel
chain, helps protect consumers from irregular price rises and scams. One
technique has had consumers use the current conversion rates to calculate
these prices, then stick the calculations on the refrigerator door, or
in a wallet when traveling. Stores displaying the euro logo (a blue square
emblazoned with a yellow euro symbol) promise their customers additional
confidence in the prices.
Public Sector
What else is involved in getting Germany - and Europe - ready for
the largest currency conversion in history? Plenty. The German government
has been working on the task for years and most federal, state and
local communities have largely concluded their preparations. But,
from parking meters to postage stamps, governments had to convert
hundreds of municipal facilities, as well as
tax, pension and insurance programs. The city of Cologne, for instance,
pumped a whopping DM 14.8 million (US$ 7.4 million) into its conversion
- DM 1 million (US$ 500,000) for software upgrades alone. Then there
is the massive public relations campaign the government has undertaken
to educate consumers about the value, security and handling of their
new money. All this has taken roughly DM 1.9 billion, or €0.97
billion from government coffers. That's not counting a cent of what
private enterprises have spent on converting IT systems, databases,
cash registers, vending machines as well as staff training and marketing
materials.
Distributing the Cash
State and federal banks may have had the biggest headaches of all.
Currency distribution is a Herculean challenge: For the entire euro
area, 50 billion coins have been minted, 14.5 billion notes printed.
Since September 2001, German banks have been distributing roughly
15.5 billion new euro coins and 2.5 billion euro bills to retailers
throughout the country. At peak periods, up to eight times more cash
than usual is on the move on German roads. Police, banks, retailers
and security van operators must naturally coordinate their security
and preventive measures. And the banks' work won't be over when the
euros are handed out. In the months to come, they have to withdraw
from circulation a staggering 29 billion coins and 2.6 bills of the
old national currency.
So, the next time you backpack across the continent without spending
a cent at a change bureau or weighing down your pockets with coins
of all countries, give a thought to the vast organizational effort
and expense that went into creating this convenience.
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In Their Hands
 Welcome
to the euro
Questions
and Answers
Essentials
Background
Bank
Notes and Coins
Time
Line
Why
the euro?
In
Their Hands
Fun
Facts and Link List
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