1. Why does Estonia not accede to the euro area in 2007? When is the country changing over to the euro?
The Estonian Government and the central bank have set the goal to change over to the euro at the first opportunity, that is, as soon as Estonia will meet all the necessary conditions. On 27 April 2006 the Government of the Republic decided that the several-years-old objective to join the euro area on 1 January 2007 is no longer realistic due to Estonia's high inflation rate, thus we have to prepare for the changeover on 1 January 2008.
2. How can I exchange kroons into euro? What is going to happen to the money in my current account?
Upon agreement with Eesti Pank, commercial banks will exchange kroons into euro at the central exchange rate and without a service fee for a month prior to and six months following the €-day, and will then continue to provide the same service within a limited branch network for another six months. After the exchange period has ended in commercial banks, Eesti Pank will continue to exchange kroons into euro at the central exchange rate and without a service fee for an unlimited period of time.
A two-week period of dual circulation will start from the €-day, during which both kroon cash and euro cash are considered equal payment means. Both euro and kroons will be accepted at shops, although change will usually be given in euro. After the end of the dual circulation period, euro will be the only legal tender in Estonia.
There will be no transitional period as regards account money - introduction of the euro will take place on the €-day. Account money will be converted into euro simultaneously and in full.
3. What are the products and services the prices of which have to be displayed in two currencies? What are the rules of displaying prices?
The obligation to display prices in both kroons and euro half a year prior to and after the €-day shall be established by a regulation of the Minister of Economic Affairs and Communications. The obligation also extends to the display of prices of goods and services at points of sale where communication of price information is possible in printed or written form. Thus, consumers will be provided with the dual display of prices in all shops and points of sale selling basic commodities where customers most often make their daily purchases. Traders are recommended to display dual prices already now. Everyone doing this on a voluntary basis must start using the official exchange rate of Eesti Pank (1EUR = 15. 6466 EEK) for converting prices as of 1 September 2006.
4. Is it sure traders will round prices according to the rounding rules? Will traders be supervised? What is the state going to do to avoid the raising of prices?
The rules of rounding and recalculating prices will be prescribed by a regulation prepared by the Ministry of Economic Affairs and Communications. Rounding must be done with at least one euro cent accuracy. Rounding rules will take effect as from 1 September 2006.
Regular price monitoring lead by the Ministry of Economic Affairs and Communications will be conducted until 1 July 2008. The results of the price monitoring are disclosed to the general public. Voluntary consumer protection associations, the Consumer Protection Board, and the Estonian Institute of Economic Research are involved in the price monitoring process, which includes most frequently consumed food products, basic commodities, and most frequently used services.
5. Are there any new knowledge and skills my employees must acquire in relation with the changeover to the euro? Who organises such trainings?
Eesti Pank plans to conduct a series of training sessions for cash handlers in 2007 (starting from the second quarter). The purpose of such trainings is to distribute information regarding the security features of the euro, thereby minimising the spread of counterfeits. A number of re-trainers who will teach other cash handlers will be trained during the courses.
