This study was produced by OPTEM S.A.R.L. for Health & Consumer Protection DG and represents its views on the subject. These views have not been adopted or in any way approved by the Commission and should not be relied upon as a statement of the Commission's or Health & Consumer Protection DG's views. The European Commission does not guarantee the accuracy of the data included in this study, nor does it accept responsibility for any use made thereof.
74, CHEMIN DE LA FERME DES BOIS BP 13-78950 GAMBAIS QUALITATIVE STUDY ON THE PREPARATION OF CITIZENS FOR THE CHANGEOVER TO THE EURO SURVEY CONDUCTED AMONG THE GENERAL PUBLIC, THE ELDERLY AND PEOPLE IN INSECURE SOCIO-ECONOMIC CIRCUMSTANCES IN THE TWELVE MEMBER STATES OF THE EURO AREA EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR HEALTH AND CONSUMER PROTECTION July 2001 OPTEM S.A.R.L. AU CAPITAL DE 150 000 F - R.C.S. VERSAILLES 339 197 444 TELEPHONE : (0) 134 871 823 - TELECOPIE : (0) 134 871 783 EMAIL : optem@dial.oleane.com -2-
CHAPTER I: INTRODUCTION, OBJECTIVES PURSUED, STUDY METHODOLOGY -3-
This report presents the results of a study conducted, at the request of the Directorate-General for Health and Consumer Protection of the European Commission, by OPTEM and its partners in the group of qualitative study firms to which the Qualitative Studies framework contract managed by the Press and Communication Directorate-General has been allocated. OPTEM, the coordinating institute, was responsible for the design, analysis and synthesis of the study on the basis of the investigations carried out on the ground by Echanges Marktforschung (Germany), IFM (Austria), Yellow Window (Belgium), Escario y Asociados (Spain), Marketing Radar (Finland), BVA (France), Focus (Greece), MRBI (Ireland), Market Dynamics International (Italy), OPTEM (Luxembourg), PQR (the Netherlands) and Euroteste (Portugal). This study follows on from two surveys carried out in mid-1999 and the end of 2000: ❿ The first of which was conducted in all Member States of the European Union among the sensitive populations of the elderly and people in insecure socio-economic circumstances; ❿ The second study was conducted in the twelve Member States of the euro area among populations of the same kind and a control sample of the general public. Against the background of the imminent introduction of euro notes and coins just over six months after this study was conducted on the ground the main objectives of the study were as follows: ❿ To take stock of attitudes to the euro and the way in which they had changed since the previous survey: general attitudes to the single currency project, perceived advantages and disadvantages, degree of involvement; ❿ To find out what citizens know and do not know about the euro and to list their sources and channels of information in this area; ❿ To analyse how they see the period after 1 January 2002 and the period after February 2002 when euro notes and coins will be introduced and national currencies replaced; ❿ To observe their reactions to prices presented in euros and to the simulation of simple payment operations using dummy notes and coins: the ease or difficulty with which they carry out these operations and the reasoning and mental processes they use; ❿ To identify the ways in which they intend to become accustomed to the euro and the value of things in the new currency, and to analyse their reactions to various measures that can be taken to make up for gaps in information, reduce fears, increase confidence and promote familiarity. This study was conducted in the 12 Member States of the euro area among the same three population groups as in 2000: ❿ The population group of the elderly aged between 70 and 80 years from low and middle social categories, 1 who must have been retired for at least five years; 2 ❿ The category of persons with major socio-economic difficulties: insecure or very low paid jobs, unemployment, at least partial dependence on state social security assistance schemes, and limited level of education (no higher than secondary education, and in at least half the cases uncompleted secondary education). In terms of age, the persons selected had to be between 30 and 50 years old; ❿ The category of the general public as a control sample, so to speak. These people were drawn from the middle socio-occupational categories of the population. 3 The study also sought to strike a balance between married or cohabiting couples and single people, and between households with or without children; the people interviewed were aged between 30 and 55 years. In each category, approximately the same number of men and women were interviewed. 1 2 3 Manual workers, employees, supervisors and artisans. The following people were excluded from the scope of the survey: people who had worked in the sectors of agriculture, trade, financial services, accounting, informatics, tax administration, marketing studies and opinion polls, advertising and communication. This condition applied to both husband and wife if they had both worked. Manual workers, employees, supervisors, middle management and artisans, with the same people being excluded as in the case of the elderly. -4-
In any event, the people concerned had to be citizens of the countries in question. As in 2000, the method used was in-depth personal interviews, which made it possible to gain a good understanding of each person's reactions to the values of products and services in euros, and to analyse the various ways in which each person tried to appreciate these values. The interviews lasted 60 minutes on average. In each country, the sample comprised seven interviews in each of the three categories (plus, for France, seven interviews of members of the general public in the ultraperipheral region of Martinique). The interviews were carried out in June 2001. Readers will find attached: ❿ the composition of the sample populations interviewed in each country; ❿ the interview guide used. -5-
CHAPTER VII: CONCLUSIONS -6-
ATTITUDES TO THE EUROPEAN SINGLE CURRENCY PROJECT General structure of attitudes; differentiation by country In the attitudes to the euro as a policy project, the main differentiating criterion remains the country, ahead of the socio-demographic category. People in positions of insecurity may feel more removed than others from a project which, to them, is more abstract, and be more worried about their adaptation to the euro, but their ability to understand the objectives pursued with the introduction of the single currency differs more in degree than in nature in comparison with persons from the middle category of the population. As far as the elderly are concerned, even though they have greater specific fears about the practical consequences of the arrival of the euro, especially in certain countries, they do not lack the ability to understand why the single currency is being introduced; in fact, they are more favourable to the euro in certain countries (Spain, Austria), which is seen as part of European integration that is itself held in high esteem. The statements that can be made about the differences between countries show continuity with the previous years: ❿ In the countries of southern Europe, the level of support for the project is generally high, as it is overall for European integration. As can also be seen in other studies on the image of the European Union, the European "affectio societatis" is higher there and the euro is a major part of Community integration and being part of it continues to be seen as something to be proud of. Among southern Europeans, Italians are a rather special case; while they are not opposed to Europe, they appear to be suffering from a fairly widespread sense of melancholy at the moment, which is considerably tempering their positive attitudes. In Spain, part of the middle class continues to suffer silently from frustration, no doubt more because of perceptions of the status of the country in the European Union than because of the euro itself. ❿ Support for Europe and for the euro also remain high in Finland, Belgium and Luxembourg; in the last of these countries, the somewhat German doubts that were expressed in 2000 appear to have considerably decreased. In Austria, basic attitudes appear to be more homogeneous than in 2000, and they are also globally positive. ❿ In France, people have a good understanding of the idea behind the single currency, as has been the case from the start, but a considerable section of the population feels removed from the project, albeit less so now in the ultraperipheral region of Martinique. ❿ In Germany and the Netherlands, the dominant attitudes continue to be marked by mistrust towards the replacement of the national currency by the euro and towards a Community institution seen as distant and suspicious. The virulence of the feelings of Germans does appear to be falling, however, and the underlying propensity to feel like Europeans to be rising; on the other hand, the Dutch continue to express a very strong objection to the euro on grounds of principle because it is considered to have been "half-baked" from the start due to the participation of the economically weak countries of southern Europe, which are suspected of pulling the currency down to the detriment of the prosperity of the country and its citizens. ❿ In Ireland, which remains a europhile country, there are still gaps in people s understanding of the euro, albeit less so than in the past. -7-
Evolution of attitudes ❿ The factors which, in 2000, had led to the erosion of support for, or confidence in, the euro in several Member States now have considerably less impact: The weakness of this European currency in relation to the dollar: while this is still mentioned in certain Member States (especially the Netherlands), it is no longer an issue in the others; The fact that three countries (primarily the United Kingdom) have not joined the single currency is also causing people less perplexity and concern than in the past. ❿ While the basic factors behind the negative assessment of the euro have, if anything, diminished, the concerns about the arrival of euro notes and coins, the actual impact that the euro will have and the way of adapting to it are increasing all the time. This does not mean that citizens are really less passive, but it is clear that the date for the introduction of the euro notes and coins is no longer the distant and abstract phenomenon that it still was for many people in the autumn of 2000. At the same time, the situations are becoming more radical and the specific worries of the most vulnerable section of the population are increasing: persons in positions of insecurity and elderly people with a low level of education (especially women in the countries of southern Europe). This is particularly the case in Italy, Spain, France, Belgium, Germany or Finland. -8-
LEVEL OF KNOWLEDGE Global state of knowledge The global level of basic knowledge about the euro, which had changed little between 1999 and 2000, improved considerably in the countries in which it had still been particularly low even though there remain considerable areas of vague knowledge in some cases. Generally speaking, most people in the middle class of the population are now reasonably well informed, whereas some people in the sensitive categories are lagging behind. It can be considered that, on most points, knowledge: ❿ Is very high in Germany and Luxembourg; ❿ Is high, barring a few exceptions, in Belgium and Finland, and also in Italy and Spain now; ❿ Is comparatively high, but remains less evenly spread in Metropolitan France, Austria, the Netherlands (where a fair number of people continue to express doubts about the definitive nature of the conversion rate), and also in Portugal and Greece now; ❿ Remains more vague in Martinique, in spite of a considerable increase in awareness; ❿ Remains uncertain in many Irish people, in spite of a clear improvement in the basic situation. Known and unknown aspects ❿ The fact that the euro is to replace national currencies completely and irrevocably is something that everyone has understood, barring a few very rare exceptions; ❿ The definitive nature of the conversion rate is called into question by a significant proportion of the population only in the Netherlands, but a few uncertainties remain among members of the sensitive categories of the population in Italy, Spain, Greece, Ireland and Austria; ❿ The value of the euro in national currency is well or fairly well known by most of the people interviewed in the middle class of the population in all countries, except in Martinique (where some people have only a very rough idea of the value of the euro) and in Ireland (where people have registered the value of the pound in euros rather than the other way round, and do not always know which way to apply it). Ignorance or uncertainties remain in a considerable proportion of elderly people or people in insecure circumstances, especially in Portugal, Greece, Ireland, France, the Netherlands and Austria; ❿ The date of introduction of notes and coins in euros is fairly clear to most people, but there are still uncertainties or vague ideas on this point, especially in Ireland, and among people from sensitive categories of the population in Greece, Metropolitan France, Belgium and Austria (as well as in Martinique). ❿ On the other hand, people are very vague in most countries including middle-class people about the length of the period of dual circulation and the date of withdrawal of the national currency. Only in Germany and Luxembourg have these arrangements been clearly assimilated by most people (but, there too, not by everyone). -9-
AWARENESS OF THE POTENTIAL ADVANTAGES OF THE EURO AND FEARS ABOUT THE NEW CURRENCY Awareness of the advantages of the euro ❿ The macro-economic advantages for Europe, trade within Europe and interviewees own country are mentioned almost everywhere with the exception of the Netherlands, where people continue to think that the euro will merely have negative effects in this area (although people s attitudes were slightly less virulent). However these advantages do not always have the same importance for the people interviewed in the various countries, or mean the same thing to them. The idea of macro-economic benefits is most widespread in the countries of southern Europe Portugal, followed by Greece, Italy and Spain, and in Luxembourg, Martinique and, now, in Ireland, as well as in three countries in which people in insecure circumstances have more doubts Belgium, Austria and Finland. In the southern Member States (apart from Italy), this idea is accompanied by real hopes that living standards and conditions will be harmonised upwards. ❿ The benefit of monetary and economic stability continues to be clearly understood in the southern Member States which have recently had high inflation rates Italy, Spain and, more still, Greece, as well as Finland. ❿ Expectations of greater ease of travel appear to have become more widespread, even though they are still voiced primarily in the northern Member States, in which the practice of taking holidays abroad is particularly developed: Finland, Germany, Belgium and Luxembourg. ❿ The expectations that shopping will become easier as a result of the greater transparency of prices that the euro will bring is not particularly mentioned, other than by Belgians and Luxembourgers, many of whom live in or near border areas, and by certain Finns. Fears and concerns ❿ Basically (other than the presumed difficulties of the practical changeover to the euro), the fears or concerns that existed in 2000 can still be seen, albeit to a slightly lesser degree overall. The value and stability of the euro: fears are still widespread in the Netherlands, but they are less marked in Germany and the other countries in which the sharp fall of the euro against the dollar was a source of concern (Italy, France, Belgium, Luxembourg, Austria). The widening of the social divide: this concern remains and is expressed in these terms in France and Luxembourg, but there is little evidence of it elsewhere. The cost of solidarity with the Member States that are not so rich: the Netherlands is about the only Member State in which this continues to be denounced; Nostalgia about the idea of the disappearance of the currency as a symbol of national identity: this remains strong in Germany and the Netherlands and is still present in other Member States in which it was already seen, but nowadays it is rarely a factor of active resistance: the euro is now an unavoidable fact of life, whether people like it or not. ❿ Concerns are becoming both more specific and more homogeneous across Europe as the date of introduction approaches. These are mainly : Widespread fears of price rises, not because of a general economic catastrophe but rather because almost everyone expects to see price increases or unfavourable application of the conversion rates, including in the countries in which there was greater confidence about this aspect in previous years. These fears are mainly directed at small traders, and concern other economic players far less. -10-
In some cases, however, such as in Germany or the Netherlands, the certainty that people feel that these price rises have been brought forward leads to a more general idea of an inflationary effect, including for the public services. People's growing awareness of the difficulties that they will have in establishing a new scale of value and in becoming accustomed to using the new currency. The vast majority of citizens still do not have any benchmarks for prices in euros. As in 2000, these difficulties lead people to feel disoriented, fearing that they will be overcharged without realising it and that they themselves and other people will make unintentional mistakes, these fears being exacerbated by the fact that they have not mastered the conversion calculations. The vague idea that people will have less money in euros than in national currency also exists, or the fear that people will end up making reckless purchases because goods will appear to be cheap, although this is not a widespread phenomenon. -11-
USE OF THE EURO Faced with the prices of various products in euros, the European citizens interviewed did not prove any better at finding their bearings than in the previous survey Their difficulties, which naturally varied considerably from one country to another depending on the simplicity or complexity of the conversion rate (rounding), are still the same and show that hardly anyone has used the intervening months of the transition period to familiarise himself with values expressed in the new currency virtually everyone has the same reflex of attempting to convert amounts in order to return to known benchmarks in national currency. These difficulties are naturally particularly great in the Member States in which the conversion rate is most complex or has been mastered least well: (Metropolitan and ultraperipheral) France, Spain, Greece and Ireland. But there are also considerable difficulties, more so than the persons interviewed foresaw, in other Member States, especially the Netherlands, Austria, Portugal and Italy, particularly in the sensitive categories of the elderly or people living in insecure circumstances. The level of familiarity with the new notes and coins is still non-existent or very low for the vast majority of the population. When people are shown (dummy) notes and coins, the following phenomena are observed: ❿ Very widespread favourable reactions to the euro notes, concerning both their design and their clarity and simplicity. ❿ Far more varied reactions to the coins. While they appear to the Germans, French, Belgians and Luxembourgers to be simple and easy to use (apart from the problem of the existence of a large number of coins of different denominations), this is less true of the Dutch, Austrians and Finns, and even less so of the Spaniards, Portuguese, Greeks, Italians and Irish, who are troubled by the cents and the possible confusion between the euro and its subdivisions. When payments with euro notes and coins are simulated, the following phenomena are observed: ❿ Good ability to carry out these operations in the middle class of the population (but less so in Greece, Portugal, Ireland and Martinique); ❿ Considerable difficulties in the sensitive categories of the population, especially among the elderly in Portugal, Greece, Ireland, Luxembourg, Austria and Finland, and among people living in insecure circumstances in most countries (apart from Germany and, to a lesser degree, Italy and the Netherlands). -12-
SUGGESTED POLICY APPROACH In the light of these results and given the fact that only a few months remain until 1 January 2002, we believe that the main measures to be taken should be focused on the following points: ❿ Continue to communicate about the validity of the euro and its benefits for Europe and for the country, especially in those Member States in which basic resistance remains strong (although it is doubtful that this resistance can be reduced significantly in such a short space of time where this has not already happened). ❿ Continue the information measures on the basic facts concerning the euro and its introduction, including its date and the value of the euro in national currency, where they have not yet been assimilated by everyone but especially concerning the duration and arrangements for the period of dual circulation and the withdrawal of the national currency, about which there is still considerable ignorance and confusion; ❿ Familiarise people with the system of new notes and coins and their design, since the measures conducted in the past seem to have had virtually no effect. It is likely that people s awareness in this area can only be raised by measures that allow and encourage them to physically handle the new notes and coins, which may be done using dummy notes and coins if it is impossible to introduce genuine notes and coins before the changeover date. ❿ Develop measures to provide local support to the sensitive categories of the elderly and persons living in insecure circumstances, whose concerns are rising and many of whom are at a loss with the new currency and are unable to use it. While information in written form or on the television is of course necessary, it will obviously not suffice; proper measures to help people to become accustomed to the currency are now urgently needed. -13-