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FAQ - Introduction of the euro in Slovenia
What were the key dates of the euro introduction plan in Slovenia?28 June 2004 - ERM II entry 1 March 2006 - Beginning of the dual display of prices of goods
and services 15 and 16 June 2006 - Start of pre-entry period 1 January 2007 - Introduction of the euro 1 January 2007 - 14 January 2007 - Dual circulation period
1 January 2007 - 1 March 2007 - Cash changeover at banks without
commission Source: Government Communication Office What kind of positive effects are expected for Slovenia, the people and economy?Apart from the very straight-forward economic benefits of joining the world's second most important currency area and the elimination of exchange-rate risk with our main trading partners, euro adoption represents a strong signal of the maturity that the Slovene economy has achieved. It should further enhance the investment opportunities in Slovenia and better promote our country as a place to do business. At the same time, Slovene consumers will more easily benefit from the advantages of the EU internal market. The adoption of the euro brings many advantages for citizens and enterprises. The euro enables easier travel to other countries that use the euro, as money does not have to be exchanged at every border crossing. Furthermore, it is easier to compare prices at home and in the euro-area countries, as all prices are expressed in euro and no longer in different currencies. Similarly, travel to countries outside the euro area is easier, as the euro is an international currency. One of the future advantages of adopting the euro in Slovenia is the abolishment of fluctuation in the exchange rate in the member states using the euro, and elimination of related uncertainty, risks and costs. This creates a more stable environment for importing and exporting companies by eliminating the risk associated with changes in the exchange rate. Furthermore, various transaction costs associated with currency exchange are eliminated. This lowers the costs and ensures greater stability of trade, and consequently greater trade and capital flows with the EU and faster integration into the EU single market. Greater transparency of prices brings about increased competition, which leads to lower prices. The euro brings advantages to savers and borrowers as it opens up new saving opportunities and ensures easier borrowing in a larger and more liquid financial market. Another advantage of the adoption of the euro in Slovenia is related to the general economic advantages, so we can consequently expect lower inflation and lower interest rates, which will have a positive effect on investments and economic growth. Source: Ministry of Finance What was the selection process of choosing the Slovenian side of euro coins?The first stage of the selection process started in April 2004, involving preliminary discussions with numismatists, designers and experts. The general public was also invited through the mass media to participate in a public tender concerning proposals of motifs (132 tenderers proposed 699 motifs). A special expert commission (9 different individual experts and members of different institutions, including the Ministry of Finance and the Bank of Slovenia) dealt with the proposals and the process. The second stage of selection started when the Government of the Republic of Slovenia confirmed the commission's decision that invitations would be addressed to some prominent designers for the production of designs. The commission invited five well-known Slovene designers. A special jury of reputable Slovene artists, designers, professors and connoisseurs of Slovene cultural heritage was appointed to review and assess the designs submitted for the Slovene euro coins. The commission of the Bank of Slovenia and Ministry of Finance unanimously agreed with the proposed selected designs prepared by Mr Miljenko Licul, along with Ms Maja Licul and Mr Janez Boljka. The Government of the Republic of Slovenia gave their consent and adopted the decision on 28 July 2005 to submit the selected design proposals for the national side of the Slovene euro coins to ECOFIN (Economic and Financial Committee) - Coins Sub- Committee, which acknowledged the compliance of the Slovene design proposals with European legislation on 5 October 2005. Source: Ministry of Finance What is the role of the Bank of Slovenia after the introduction of the euro?By joining the EU, the Bank of Slovenia became part of the European System of Central Banks (ESCB) consisting of the national central banks of the EU member states and the European Central Bank (ECB). As not all member states have adopted the euro, the central banks of those EU member states that have adopted the euro and the ECB are referred to as the Eurosystem. Since 1 January 1999 the Eurosystem has been responsible for determining and implementing the single monetary policy for the euro area. The ESCB on the other hand, as mentioned above, consists of the ECB and national central banks of all EU member states. National central banks of those EU member states that have not adopted the euro are part of the ESCB and have a special status within the system. They can pursue their own monetary policy and do not participate in the process of decision-making and implementation of the single monetary policy. With Slovenia's entry into the EU, the Bank of Slovenia became part of the ESCB, but not of the Eurosystem. In the period between EU accession and adoption of the euro the Bank of Slovenia was still responsible for the implementation of monetary policy. Upon the adoption of the euro the responsibility for implementing the monetary policy in Slovenia are transferred to the Eurosystem, which the Bank of Slovenia joined. The Bank of Slovenia also participates in the ECB decision-making bodies. Upon Slovenia joining the EU, the Governor of the Bank of Slovenia became a member of the General Council of the ECB and after adoption of euro he became a member of the Governing Council of the ECB. The national central banks are an integral part of the ESCB and shall act in accordance with the guidelines and instructions of the ECB. The functioning of the Eurosystem is such that decisions are reached by the ECB, i.e., in a centralised manner, and implemented via national central banks, i.e., in a decentralised manner. Source: Bank of Slovenia How can we prevent the unjustified increases of prices?In order to monitor closely the price developments before and after euro adoption, the Statistical Office, the Ministry of Economy and the Consumer Protection Association signed a detailed agreement on the modalities of the 'price-watch'. In line with the agreement, the Statistical office was in its monthly reports publishing a special section devoted to all goods and services that may exceed a justifiable price increase, and also reported on specific price developments. Parallel price-watches were also organised by the Consumer Protection Association. The Chamber of Commerce and Industry (GZS) and Chamber of Craft Industries (OZS) urged Slovenian companies to sign up to a euro price code. Companies adhering to the code pledged not to raise their prices as part of the changeover. What effigies are found on the Slovenian national sides of the euro coins?Each member state of the euro area issues euro coins featuring the national side. Slovenia selected the following designs for its euro coins: 2 euro 1 euro 50 cents 20 cents 10 cents 5 cents 2 cents 1 cent Did banks charged any additional fees or commissions for conversion of funds on bank accounts?No, tolar account balances were converted into euros free of charge. Banks and savings banks also exchanged the tolar banknotes and coins at the conversion rate into euro banknotes and coins free of charge until the 60th day inclusive after the adoption of the euro (until 1 March 2007). Banks and savings banks had the right to demand that exchanges of amounts exceeding EUR 1,500 was notified one working day prior to the planned exchange. Without prior notification of the exchange, banks and savings banks were able to charge exchange costs for amounts exceeding EUR 1,500. The cash changeover procedures were specified in detail in the Euro adoption act regulating the adoption of the euro. What is the value of particular euro banknotes and coins?Irrevocably set conversion rate between the tolar and the euro is: 1 EUR = 239,640 SIT. Consequently:
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