Transcript EuroCommerce Board and General Assembly

Introducing the €
A Practitioners Analysis
Michael Grosse (EuroCommerce),
Adviser on SMEs &
Enlargement and Integration of New Member States
Budapest, 23.5.2006
Agenda
1.
2.
3.
4.
5.
6.
Introduction
EuroCommerce
Political topics
Preparation checklist
Experience 2002
Conclusions
1. Introduction
• Adopting the €: What role do
retailer play ?
• How do the Hungarians feel
about the € ?
• What are the benefits and the
costs of introducing the € ?
2. Who is EuroCommerce?
• EuroCommerce was founded in 1993
• Merger of the European associations
formerly representing retail,
wholesale and international trade
“a single voice for Commerce in Brussels”
EuroCommerce
Members
Svensk
Handel
VOSZ
NCHC
NRZHIU
SESME
Reál Hungária
EuroCommerce represents a unique mix of companies - from world leading
international companies all the way down to the corner shop
Membership
• EuroCommerce represents more than
100 members from:
– national trade associations
– individual companies
– European sectorial trade associations
• in 29 countries
Commerce in the EU
• 13% of EU GDP
• 5,5 millions enterprises (95% SMEs)
• Interface between industry and the
450 million consumers across Europe
• Providing jobs for 26 millions people
from all parts of society
“A thriving sector bringing wealth to the
European economy”
The mission of
EuroCommerce
• To promote the common interests of
the sector vis-à-vis the EU institutions
• To lobby throughout the legislative
process on behalf of commerce
• To educate EU decision makers to the
impact of future legislation on
commerce
• To provide timely and comprehensive
information to members
3. Political €-topics
•
•
•
•
•
Frontloading of banknotes & coins
Dual pricing
Dual circulation period
€-day: Choice of date and scenario
Inflation?!
Frontloading
• 2002: Fear of counterfeit
money
• Starter-kits: only coins
• Getting familiar with €
• ATMs
• Early 2002: Cash payments
Starter-kits in Austria
Starter-kits for consumers
Dual pricing
1998 Euro logo agreement:
• Voluntary agreement
• Retail sector and consumer
organisations
• Inform customers about €
• Guarantee price stability
• Legislation only in AUT; POR; GRE
Dual circulation period
• 2002: Maximum 6 month
• HU: 1 month
• Give change only in €
• ATMs and frontloading
essential
• Backflow of national currency
€-day: Date and scenario
• Avoid 1 January!!
• Busiest time for retailers
• Why not take 1 February?
• Bing-bang is best option
Inflation?!
• Gap between actual and
perceived inflation
• Only some prices have gone up
(tourism; restaurants; some lowcost goods)
• « Euro profiteering » ?!
Statistics
4. Preparation Checklist
• Appoint„€-Coordinator”!
• Check the IT system!
– Test-run
– Storage
– New software?
• Accounting
– Rounding rules
Preparation Checklist (2)
•
•
•
•
Training of staff
Labeling & pricing
Contracts
Cash handling on €-day
– Calculate change needed after €day (“€-calculus” in Austria)
www.stuzza.at –> Download Archive
5. Experience 2002
• Smooth process
• Quick change-over
• Consumers €-phoric
• Costs for retailers ~ 1% of
turnover
6. Conclusion
• Political decisions necessary
• Preparation on time essential
• Benefits outrange costs
European Parliament,
7 January 2002
« Retailers are the real heroes of
the euro changeover! »
MEP Jules MAATEN; Nl
The retail sector is a « champion
of transition. »
MEP Marianne THYSSEN; BEL
Thanks for your attention!
Michael Grosse
[email protected]