Introduction of the euro in the New Member States

Gallup Flash EB N o 191 Introduction of the euro in the New Member States Flash Eurobarometer European Commission Introduction of the euro in the New Member States Summary Fieldwork: Publication: November 2006 Flash Eurobarometer 191 The Gallup Organization This survey was requested by Directorate General Economic and Financial Affairs and coordinated by Directorate General Communication This document does not represent the point of view of the European Commission. Summary Report, page 1 The interpretations and opinions contained in it are solely those of the authors.

Flash EB N o 191 Introduction of the euro in the New Member States Gallup Flash EB Series #191 Introduction of the euro in the New Member States Wave 4 Conducted by The Gallup Organization Hungary/Europe upon the request of the European Commission, Directorate-General Economic and Financial Affairs Survey organised and managed by the Eurobarometer Team of Directorate-General Communication This document does not represent the point of view of the European Commission. The interpretations and opinions contained in it are solely those of the authors. THE GALLUP ORGANIZATION page 2

Gallup Flash EB N o 191 Introduction of the euro in the New Member States Introduction Despite a widespread belief to the contrary among their citizens, the New Member States of the European Union have the obligation to adopt the common currency, the euro, once they have fulfilled the economic stability criteria defined in the Maastricht Treaty. At present most of them are working to meet the economic entry criteria on government deficit and debt, inflation, interest rates and exchange rate stability they are all expected to join the euro area in due time. Slovenia is now preparing to a January 2007 changeover from tolar to euro. There is no common strategy or fixed timetable with regard to the introduction of the euro in each of the newly acceded member states. At present, seven New Member States have joined the Exchange Rate Mechanism II (Estonia, Lithuania, Latvia, Slovakia, Slovenia, Cyprus and Malta), while the three largest countries - Poland, the Czech Republic and Hungary - still remain outside of the common exchange rate mechanism (as one of the conditions, a country must have been a member of the ERM II for a minimum of two years before adopting the euro). There has been a lot of discussion in several Member States and in European bodies about whether or not adherence to the nominal convergence criteria laid out in the Maastricht Treaty thus, a too early adoption of the euro is useful for the New Member States. Some national governments see a conflict between the Maastricht criteria and what they call real convergence needs (e.g., catching up with the per capita national income, wages, public services). Internal debates in some countries have even led to speculation about possible referenda to be held about joining the eurozone, which would effectively be a second referendum on membership itself. Concerning the introduction of the euro in the new EU countries, the European Commission is keeping track of general opinion, levels of knowledge and information and familiarity with the single currency of citizens of the New Member States. The objective of this survey FL191 is to identify the perceptions of the citizens in the New Member States regarding the future introduction of the euro in their countries. The main themes in the report are the following: levels of knowledge and experience of the euro among citizens of the New Member States feelings as regards being informed - and the most favoured channels of information perceptions of the single currency expectations and fears concerning the adoption of the euro This report sums up the most important attitudes regarding the euro in New Member States, and highlights the most recent dynamics of opinions in each of the countries that are to adopt the euro in the future. This study is the fourth one following on from earlier Eurobarometer surveys in 2004, 2005 and Spring of 2006. The content of the questionnaires is consistent with those from 2004 and 2005, though the new interviewing mode (the last two survey waves were predominantly completed over the telephone) required certain modifications to the actual wording of questions in spring 2006. The order of the questions also changed, which influenced the responses we received (earlier studies started with the attitude questions, while the current one had experience and knowledge questions first). Of course, where possible, we will make a comparison of current results with those measured in previous waves. The present questionnaire is fully identical and comparable to the spring 2006 questionnaire. The survey s fieldwork was carried out between 4 th - 8 th of. Over 10,000 randomly selected citizens aged 15 years and above were interviewed in the ten new EU Member States. Summary Report, page 3

Flash EB N o 191 Introduction of the euro in the New Member States Gallup The survey was dominantly carried out via telephone, with WebCATI (web-based computer aided telephone interviewing). Due to the relatively low fixed telephone coverage in the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland and Slovakia, we also sampled and interviewed 0 persons face to face in each of these countries. To correct for sampling disparities, a post-stratification weighting of the results was implemented, based on important socio-demographic variables. page 4

Gallup Flash EB N o 191 Introduction of the euro in the New Member States Familiarity with the euro The data from this last wave show close similarity to the results from April 2006. Respondents in the New Member States of the EU were relatively familiar with the common currency. However, at the 10 level we measured a slight decrease from April 2006 in ratio of those citizens who have already seen euro but not in ratio of those who have already used it. Three quarters of citizens in the area have seen euro banknotes - while seven in ten report the same about euro coins. Less than half of the citizens have actually used the euro already. Generally, banknotes are more known and are more widely used than coins in the New Member States. Seen and used euro banknotes 1 0 0 0 80 Seen Used 1 0 77 S I CZ EE CY PL SK MT LT HU LV 51 80 83 62 77 83 69 82 76 67 74 71 77 95 SI CZ EE CY PL SK MT LT HU LV 43 53 80 83 82 81 71 78 75 75 74 69 69 9 5 Q1a. Have you already seen euro banknotes? Q2a. Have you already used euro banknotes? % by country Seen and used euro coins 1 0 0 0 4 1 75 Seen Used 1 0 4 1 S I CY CZ EE MT SK PL HU LV LT 4 6 4 1 75 79 67 78 58 73 66 69 77 63 61 90 SI CY CZ EE MT SK PL HU LV LT 77 81 71 78 54 76 46 75 5 2 71 3 9 63 61 27 59 93 Q1b. Have you already seen euro coins? Q2b. Have you already used euro coins? % by country Summary Report, page 5

Flash EB N o 191 Introduction of the euro in the New Member States Gallup Similarly to the previous results, Slovenians are the most familiar with the common European currency. Since March 2006, a dual display system has been in place in Slovenia, and the country has its eye on a switchover to the euro in less than half a year. Traditionally, Slovenians have been the most active users and supporters of the euro amongst accession countries. Czechs, Estonians and Cypriots are also very likely to have seen both euro coins and notes. On the other hand, Latvians and Hungarians mentioned this time the least to have seen the common currency, although the majority even in these countries have come across with both the notes and coins. As the table below shows, there has been little change in the extent to which people have become familiar with the euro in the. Current familiarity with notes (77%) is three percentage points down from April 2006 but close to the figure of September 2005, while knowledge of the euro coins has decreased by five percentage points (%) 1. The only country where a dynamically increasing degree of familiarity with the euro can be observed is Malta (+8 and +9 percentage points, respectively, for notes and coins). Against the general decreasing trend, in some other countries we see a moderate increase in familiarity with both notes and coins in Estonia (+5 and +3), and familiarity only with coins in Slovenia, Cyprus and Slovakia (+3, +3 and +2 percentage points, respectively). Familiarity with the euro Banknotes Coins % seen 9/ 2006 % seen 4/ 2006 % seen 9/ 2005 % seen 9/ 2004 % seen 9/ 2006 % seen 4/ 2006 % seen 9/ 2005 % seen 9/ 2004 10 77 80 79 73 75 71 66 SI 95 95 95 95 93 90 91 87 CZ 83 83 75 69 78 78 61 EE 82 77 82 78 76 73 72 CY 81 83 89 85 81 79 87 82 PL 78 82 80 72 77 67 SK 75 76 71 71 69 66 62 MT 75 67 71 75 66 68 68 LT 74 74 75 72 59 61 59 52 HU 69 71 83 79 63 75 71 LV 69 77 75 67 61 63 63 While familiarity with the single European currency is similarly widespread in the region, we see the same disparities in the usage of the euro in each New Member State as in April 2006 (see chart on page 5). The usage of both euro coins and banknotes is the most common in Slovenia, Cyprus, the Czech Republic and Malta; while in most other countries the majority of citizens have not yet used the common currency. We registered a significant increase from April 2006 in the proportion of citizens who mentioned they have already used euro banknotes and coins in Malta (both +8 percentage points); while in Latvia and the Czech Republic significant decrease was measured (-5 /-5 percentage points in the former, and -6 / -4 percentage points in the latter). As to the design of the common currency, respondents remain confused and we find no change in the ratio of correct answers from April 2006. Again only the minority of the New Member States' population is able to correctly identify that banknotes are entirely the same throughout the eurozone, and that the technically similar coins do have national designs ( sides ) that contain relevant symbols pertaining to the Member State involved. 1 Some of the observed differences might emanate from different interviewing modes, and some changes could be attributed to a changed order of questions. Comparisons with previous waves therefore need caution. page 6

Gallup Flash EB N o 191 Introduction of the euro in the New Member States The graphic design of the euro banknotes and coins Banknotes Coins 0 23 0 25 0 46 34 21 0 41 22 The euro banknotes/ coins look exactly the same in all countries The euro banknotes/ coins have partly different designs from country to country DK/ NA Q3-Q4. What do you think, which of the following statements is correct? Apparently, citizens are generally unaware of the different levels of uniformity of euro coins and notes. Either they tend to believe that both are uniform, or they think both have national elements. Close to one quarter of the New Member State respondents did not attempt to give a response to the question: they said they don t know. The proportion of respondents believing that both the coins and the notes are identical in each country of the eurozone is highest in the Czech Republic, while the proportion of respondents believing that national designs appear on the coins and the notes is highest in Malta. More citizens from Lithuania (46%, +6 percentage points), Slovenia (%, +6) and Hungary (48%, +5) know correctly that the banknotes look exactly the same in all countries, but less of them that the coins are different (-9, -2 and -5, respectively). Slovenians, being very close to introduction, are particularly alert to the national content of the coins, reflecting local debate about the choice of symbols proposed for the face of their coins, but not about the content of notes: still less than half of Slovenians know that the euro banknotes are the same in all countries of the euro area (%, and % in April 2006). Again, Estonians were the best informed of all: the only country where the majority got the right answers for both questions. In the rest of the countries the majority of the public is still poorly informed about this aspect of the common currency; however in six of ten countries we measured an increase in knowledge about the graphic design of the notes. We can make a similar diagnosis if we look at a trivia question related to the eurozone: opinions did not change significantly since spring. Asking about the number of countries they think already use the euro, similarly to the previous wave result, 17% of citizens mentioned they didn t know the answer. There are another % of respondents who know the correct answer and while this proportion is nominally the highest one in these four waves of survey, it does not reflect significant change. Slightly less people believe that only 6 countries use the euro, and slightly more persons believe now that the euro has been adopted by each of the old member states than in April 2006. Summary Report, page 7

Flash EB N o 191 Introduction of the euro in the New Member States Gallup Number of current eurozone countries 6 12 1 5 25 [DK/NA] 0 21 20 3 17 0 23 1 9 3 17 09/2005 18 16 2 26 09/2004 15 16 2 Q5. According to you, how many EU countries have already introduced the euro? % 10 The variation among countries is limited: the proportion of persons who were able to answer the question correctly ranges from % in Lithuania (-3) to % in Hungary (+5). Yet even in Slovenia, again % believe that the euro is now in use in all 15 old member countries, as in April 2006. The number of countries that use the euro might not be a vital piece of information for most citizens of the countries en route to adopt the euro, but notions about the possibility to opt-out do have a more direct influence on the national politics of the New Member States. Still the majority of citizens in each surveyed country believe that their nation has a choice about whether or not they will join the European Monetary Union and, thus, whether it will adopt the euro (67% vs. only 26% having an opposite opinion). These figures didn t change from the last wave when 69% and 26%, respectively, mentioned so. Fact is that the Accession Treaty did not leave such legal choice for these countries. Can Member States choose whether or not to adopt the euro? 1 00% 90% 80% % 60% % yes no DK/NA 7 9 3 4 26 16 8 8 5 7 9 7 8 41 % % 20% 67 75 68 61 61 58 57 55 52 51 10% 0% 10 PL SI HU CY M T SK LT EE CZ LV Q5bis. Can (OUR COUNTRY) choose whether or not to introduce the euro? % by country In all countries the majority is convinced that there still is complete sovereignty when it comes to choosing their currency, especially the Polish believe that they are free to choose. People in Latvia and in the Czech Republic are the least likely to say that their country is free to opt out of adopting the page 8

Gallup Flash EB N o 191 Introduction of the euro in the New Member States European Union s common currency. The opinions from these countries did not change from April 2006. We asked about the expected date of introducing the euro. Despite the belief that countries are free to choose whether or not to join the EMU, hardly anyone in the New Member States chose to answer that the euro will never be adopted in their country (2%, while it was 1% in April 2006). Expected date of the euro adoption 1 00% 80% 60% % 20% 0% 2006 2007-2008 2009-201 0 201 1-2012 2013 or later nev er DK/ NA 6 8 7 15 3 14 15 16 0 1 1 7 7 2 2 1 4 2 3 1 12 7 5 11 10 20 1 1 13 2 12 21 18 19 99 7 1 91 83 46 22 17 13 13 8 4 10 S I M T CY EE LV LT SK PL CZ HU Q5ter. When, in which year do you think the euro will be introduced in [OUR COUNTRY]? % by country Opinions regarding this question are roughly in line with the level of preparedness for joining the eurozone. Virtually everyone in Slovenia predicts entry in the closest future, having a modal expectation of its occurrence in 2007, which is indeed the date for the switchover. A decisive majority in Malta and Cyprus foresees a switchover in the next two years. As a result of the uncertainty about whether Estonia and Lithuania would be able to fulfil the convergence criteria on time for the adoption of the euro at their original target date, the popular expectations in the Baltic region about the possible entry date changed significantly since April. While in spring the majority of the populations of the Baltic States believed they will adopt the euro until 2008 (72% in Lithuania, 71% in Estonia and 51% in Latvia), now only a minority shares this opinion (%, % and %, respectively). In these three countries, and in Slovakia, that recently joined the ERM II, citizens put the entry date in the 2009-2010 period (71% of Slovakians mention this date now, while only 66% did in April 2006). We measured the most dramatic change in Hungary. While five months ago half of the Hungarians expected the euro to be introduced before 2010, in only 22% maintain this opinion. One third of Hungarian citizens see their accession to the euro area in the very distant future, in 2013 or later (%, while 12% in April 2006), and another one third expect this to happen in 2011-2012 (%, 21% in April 2006). Similarly, in the Czech Republic significantly fewer citizens expect the euro introduction by 2010 than in April 2006 (46% vs. 58%), and more respondents put this after 2010 (34% vs. 21% in April 2006). The Polish are the least certain about their date, with one out of five citizens saying that they don t know what date they can expect for a euro introduction. However, they point to the period of 2009-2010 (%, while % in April 2006) in highest proportion. Summary Report, page 9

Flash EB N o 191 Introduction of the euro in the New Member States Gallup Information and information channels The level of factual knowledge about the euro is not particularly high among the citizens in the New Members and did not significantly change from April 2006. The question is, however, to what extent are citizens content with the level of information available to them. Overall, 5% believe that they are very informed about the euro, and another % report that they are rather informed. On the other hand, 16% say they are not at all informed about the euro. Evolution of self-perceived information level regarding the euro, % Very informed informed Not very informed Not at all informed [DK/NA] 0 5 16 2 0 5 43 1 8 2 09/2005 3 51 16 1 09/2004 3 48 16 2 Q6. To what extent do you feel informed about the euro? Do you feel : % 10 The self-perceived euro-related knowledge has improved not only in the last years (likely due to effective information dissemination in some Member States), but also slightly from April 2006. We found marked increase in self-perceived information levels in Malta (+5) and Poland (+5), and a more moderate one in Slovenia (+3), Slovakia (+2), Lithuania (+2), Cyprus (+2) and Hungary (+1). The majority of citizens in the region still think that they are not so informed about the euro (58%). The ratio of citizens holding this opinion increased in Latvia from April 2006 (+5). Perceived information level regarding the euro, by country + very -informed Not very + not at all informed 9/ 2006 4/ 2006 9 /2005 9/ 2004 9/ 2006 4/ 2006 9/ 2005 9/ 2004 10 34 58 60 67 65 SI 83 80 60 57 16 20 CZ 48 48 33 49 67 63 SK 47 51 52 66 LT 54 69 68 CY 43 60 62 MT 33 62 65 68 PL 61 65 69 EE 34 62 63 65 68 HU 34 34 65 66 62 65 LV 27 27 73 68 71 72 page 10

Gallup Flash EB N o 191 Introduction of the euro in the New Member States The self-reported level of information does not necessarily coincide with actual levels of knowledge, at least based on the trivia questions we asked regarding the euro. For example, the majority of Slovenians say they are informed about the euro (83%), but only a minority is able to correctly say how many countries there are in the eurozone (%), whether or not Slovenia can decide about adopting the common currency (only % said no) or even whether national designs appear on the euro banknotes (% say the banknotes are exactly the same). At the same time, almost every Slovenian is familiar with the euro; they have seen and have used it before, and they know that the Member States' coins look different. This indicates a different expectation regarding information : citizens appear to be less interested in the global aspects of the EMU, though they seem to be content if they are informed about the changeover scenario and as regards key information about the money itself. Nevertheless, the citizens of some countries claim to be seriously deprived of euro-related information: Latvians and Hungarians are the most likely to say that they are not sufficiently informed about the common currency (73% and 65%, respectively). Desired timeframe for being informed on the euro As soon as possible a few y ears before a few months before a few weeks before DK/NA 100 90 80 60 5 6 4 5 6 7 18 23 10 11 2 7 5 5 4 4 17 6 25 33 1 1 6 6 4 5 8 5 6 4 24 26 20 1 0 59 46 27 25 24 24 0 10 CY M T SI SK PL LT EE CZ LV HU Q7. When would you like to be informed about the introduction ofeuro in (OUR COUNTRY)? % by country Base: who say they are not or very informed In Cyprus (59%), and to a somewhat lesser extent in Malta (%), there is an immediate demand for information among the majority of those who are not currently informed about the euro. In several countries, however, a significant number of people will not look for more information until euro adoption becomes a more tangible reality. In Poland (33%), Estonia and the Czech Republic (both %) almost one third of the respondents who do not feel informed do not want further information until a few months before the changeover, while the plurality of Lithuanians and Latvians would even be interested few years before. Adding those who request immediate information to those who prefer to be informed at least a few years before the changeover, we see that the majority desire information about the introduction of the euro in advance. The results for Slovenia are of course peculiar, with only months left until the changeover: a large proportion (almost every fifth citizen, 17%) expects an intensified information campaign a few weeks before the currency switch. Trust is a key factor in information provision: people differentiate between possible sources primarily based on their assessments of how trustworthy a particular source is. It is therefore essential to provide the necessary information through channels that are widely trusted in countries that plan to adopt the euro. Traditionally, as previous measurements have already established, national central banks are the trustworthiest sources of information regarding the euro and issues related to a changeover. Similarly to our previous survey in April 2006 an average of 77% of citizens express their Summary Report, page 11

Flash EB N o 191 Introduction of the euro in the New Member States Gallup confidence in national central banks. European institutions come second, with 67% trusting them about euro-related information. This figure is slightly lower than the one we found five months ago (- 3). While in April 2006 the trust in commercial banks was on the third place, five months later the trust in consumer associations and trust in government, national and regional authorities was mentioned in the third and fourth highest proportions (both 49%). Commercial banks as trusted distributors are mentioned on the fifth place (47%, -5), following the public administration (48%, -2). The least trusted group is again the group of professional associations and trade unions. Similarly to the previous survey results, % of citizens trust them. Trusted distributors of information and campaigns, % National Central Bank European Institutions Consumer associations Government, national or regional authorities Public administration Commercial banks Journalis ts Trade unions, professional organisations, etc 43 49 49 49 51 48 47 52 67 77 77 0 0 0 10 20 5 0 60 80 90 1 00 Q8. For each of the following institutions or groups, please tell me if you would trust information they provide on the changeover to the euro, or not? % trust, 10 Naturally, the above results are not universal for each country - and national communication plans will have to primarily take into account local environment in which they have to be effective. Nonetheless, in every country the Central Bank is the prime source of information that citizens will turn to with confidence when it comes to the euro and any switchover, and this doesn t change from April 2006. European institutions make the top three in every country as, indicating a key role for them with regard to the information and communication processes used by the Commission and the ECB. Another key aspect of a successful information and communication campaign will be the medium used to distribute information. We asked our respondents to tell us where they would like to receive useful information about the euro and the changeover. As we pointed out in the earlier report, communication campaigns are normally designed on the basis of audience measurement data rather than self-reported preferences of information placements, as the latter is reported less accurately. However, these results might add a dimension that goes beyond the use of most expensive mass media channels (the option most preferred by citizens). The order of the other channels mentioned as the preferred ones is exactly the same as it was in April 2006, and the figures are very close to the previous one, too, differences ranging between 1 and 3 percentage points. The most preferred information channel is television, as it was five months ago (92%). Regardless of the nature of information to be conveyed, Eurobarometer consistently finds that people prefer to be informed via the screen of their television about anything that might be relevant to them. It is interesting to note that almost nine in ten citizens named banks as their favoured locations of information (86%, -1), while other Eurobarometer studies suggest that the proportion of those who page 12

Gallup Flash EB N o 191 Introduction of the euro in the New Member States regularly use bank services is significantly lower than this (% in the had a current account in 2003). Preferred channels for information and campaigns On television In banks In newspapers, magazines On the radio On the Internet In schools and other places of education and training In public places In your letter box In the workplace In supermarkets and shops 47 63 61 62 58 60 92 92 86 87 86 85 83 81 77 78 72 73 0 0 0 1 0 20 60 80 90 1 00 Q9. Where would you like to receive useful information on the euro and the changeover? % 10, multiple answers The third most favoured channel is that of newspapers and magazines (86%, +1), followed by the radio (83%, +2) and the Internet (with 77% of citizens preferring this as a way of receiving useful information about the euro again, a proportion that exceeds the number of those who actually use the Internet in these countries). The least desired place for disseminating information (supermarkets) was mentioned by 47% of citizens (-3), indicating a general need for easily accessible and readily available information on the subject. As to the content of the information required, citizens are convinced that each of the topics we suggested for inclusion in the euro information campaign is more or less an essential requirement. We observe only slight changes in the proportion of citizens who consider it essential to get information on how the euro notes and coins look like and on the social, economical or political implications of the euro introduction. The most important among the preferred topics is the value of the national currency in euros, as it was in April 2006; citizens almost unanimously noted this element as an essential aspect of a euro campaign (93%). It is similarly important to provide information about how to avoid being cheated in euro conversions until a full changeover will have taken place (92%). It is deemed to be very essential to have information provided about the general scenario of how the euro will be introduced in one s country (90%), i.e. the important dates and milestones of exchanging their current legal tender to the euro and about the practical implications of the euro regarding the salaries and bank accounts. There is no change in these ratings from April 2006. In the present survey the social, economic and political implications of the euro are considered to be the least essential element of an information campaign with 82% of citizens mentioning it (-4 percentage point change compared to April 2006). Summary Report, page 13

Flash EB N o 191 Introduction of the euro in the New Member States Gallup Preferred topics for information and campaigns T he value of one euro in [CURRENCY] How to avoid being cheated in euro currency conversions The way how the euro will be introduced in [COUNTRY] T he practical implications of the euro regarding your salary, your bank account 93 93 92 92 90 90 88 88 What notes and coins in euros look like The social, economic or political implications of the euro 84 82 82 86 0 0 60 65 75 80 85 90 95 1 00 Q10. In your view, which of the following issues about the euro are essential to be covered in priority by the information campaign? % essential, 10 Most activities that have been part of euro introduction campaigns in the current euro area are considered to be essential in the New Member States too, and the proportions of mentions did not change significantly from April 2006 (as the chart below shows there are only -1 percentage point and -2 percentage point decreases measured in some cases). Comparing the results with previous years, media tools received similar support (with a continuous decline in preferences as regards TV spots). Preferred tools of the information campaigns 100 90 Dual display of prices in sh ops 100 90 Dual display of the am ou n t on b ills 100 90 Newspap er adv ert isem en ts 100 90 Du al d isp lay on y ou r pay slip 80 80 80 80 60 81 79 86 85 60 69 76 75 60 N/A 73 72 60 66 66 71 100 2004 2005 0 0 100 2004 2005 0 0 100 2004 2005 0 0 2004 2005 0 0 90 80 TV advertisements 90 80 Radio adv e rtisem e nt s 90 80 L eafle ts / Broc hu re s 60 78 73 71 60 66 60 61 62 60 2004 2005 0 0 2004 2005 0 0 2004 2005 0 0 Q11. Here is a list of various information campaign actions. Could you tell me for each of them whether you would find it essential or not essential to prepare yourself for the euro? % essential, 10 A dual display of prices is found most essential, both in shops (85%) and on utility bills (75%). Most people expect that advertisements will explain the situation in newspapers (%) and on television (%). Most people do not actually have a pay slip as they are not in employment, but seven out of ten would see this way of operating as essential as in preparation for a euro switchover (%). People consider leaflets and brochures the least necessary in their personal preparations for euro adoption (60%). page 14

Gallup Flash EB N o 191 Introduction of the euro in the New Member States Perceptions of and support for the single European currency The overall climate for euro introduction is still positive, and more positive than it was in 2004 or 2005. This is, however, not a reflection of a general trend across the region as the ratio of citizens expecting positive consequences ranges between only % in Cyprus to 61% in Slovenia that regained its optimism about the entry to the euro zone after a set back detected earlier this year. Overall, % in the New Member States believe that adoption of the euro will have, on the average, positive consequences for their countries, and this figure is 2 percentage points lower than in April 2006. At the same time, slightly more citizens expect negative consequences for their country today than five months ago (%, +3). Consequences of the euro introduction For the country On personal level 0 8 26 10 15 0 8 12 17 0 8 26 7 1 5 0 7 26 10 17 Very positive positive neg ative Very negative [DK/NA ] Q12. Do you think the introduction of the euro would have positive or negative consequences for (OUR COUNTRY)? Q13. And for you personally, do you think that it would be positive or negative if the euro would be introduced? % 10 Generally, citizens expect that most of the advantages will be more positive to their country than for themselves. Only 8% think that the introduction will have a very positive (no change from April 2006), and % that it will have rather positive than negative effects for the country (-2 percentage points decrease from April 2006). Similar figures on a personal level show that 8% expect very positive (+1), and % rather positive (-3) consequences when it comes to adopting the common currency in their country. A significant minority of % expect negative personal consequences, but fewer citizens fear a similar outcome for their country (%). The ratio of perceived negative consequences is higher on both personal and country level than it was in April 2006 with +4 percentage and +3 percentage points, respectively. 15% and 17%, respectively, cannot decide if the euro will bring positive or negative consequences for their country or for themselves, and there is no change in the ratio of citizens considering so from April 2006. Looking at the overall trends, we can see a maintained bounce-back from the temporary disappointments Eurobarometer measured in September 2005. Current results are generally closer to the more favourable 2004 figures than to those of 2005 autumn. In Hungary and Cyprus the data show significant decrease in the ratio of citizens expecting positive consequences of the introduction of the euro. Hungary s recently re-elected prime minister introduced a hard-hitting consolidation package contrary to the promises he made during his election campaign, also in an effort to bring the country closer to the criteria for entering the ERM II and to eventually enter the eurozone. During the survey period, there were protests and riots in Hungary after the prime minister admitted lying about the state of the economy. The shaken credibility of the PM and his tough economic consolidation package had a detrimental effect on the popularity of the common EU currency as. In Cyprus, the largest political party, AKEL, a dominant member of the ruling coalition, recently announced that the introduction of the euro might have to be postponed for another year, due to the Summary Report, page 15

Flash EB N o 191 Introduction of the euro in the New Member States Gallup inability to fulfil the necessary stability criteria for 2008. In a climate where citizens are highly concerned about the perceived negative effect of the euro on prices and the dominant sentiment is pessimism, such messages from the political elite seem to deteriorate the unfriendly climate even further. Besides these two countries, Poland, Malta and Latvia are those countries where we measured a decrease in the ratio of citizens with positive expectations in this question. In the remaining New Member States we registered increasing optimism. People in Slovenia continue to be the most optimistic about the expected consequences of the euro for their country (61%, +3). Those in Slovakia and Poland the latter being quite far even from the exchange rate mechanism are the second and third most hopeful regarding the potential benefits to their country. Slovaks, now participating in the ERM II, are more positive about the future introduction of the single European currency. Looking at the Polish data, it seems that the major increase from September 2005 could be an enduring change in attitudes, and not only a temporary effect of the political situation Poland has been experiencing since the Autumn of 2005 (but further trend data need to strengthen this statement). While Hungary was among the most optimistic about the euro in 2004 and it was the country with the third highest ratio of citizens with positive expectations in April 2006, now it is situated only on the sixth place in this ranking. Currently, % of those interviewed thought that adopting the single currency will have quite positive consequences, while % think the opposite. The change in level of optimism is a stunning -10 percentage point decrease, and negative attitude differences are of the same order of magnitude, being +13 points since April 2006. This is of course related to the general perceptions that Hungary will introduce the euro later as it was expected half a year ago but even more importantly to the economic consolidation efforts that mean increased tax levels, and thus, realincome decrease for most Hungarians. Maltese and Cypriots continue to be most pessimistic about the possible consequences of changing their currency. Compared to the 2004 figure, in Cyprus the optimism has declined by 20 percentage points regarding possible national-level consequences of euro introduction and by 6 percentage points from April 2006. Consequences of the euro introduction : positive consequences for the country 60 5 2 09/2004 61 09/2005 58 55 0 54 5 4 51 52 49 5 0 51 0 49 46 47 43 41 33 20 10 0 1 0 SI SK PL CZ EE HU LT LV MT CY Q12. Do you think the introduction of the euro would have positive or negative consequences for (OUR COUNTRY)? Respondents believing that the introduction of the euro will have positive consequences, % by country Taken as a whole, approximately the same proportion of people report either a positive or a negative climate of opinion in their environment. With 17% of all respondents having no definite opinion, 41% believe that the most people they know are supportive of their country joining the eurozone. Almost as page 16

Gallup Flash EB N o 191 Introduction of the euro in the New Member States many, % of citizens say that the people they know are rather against the introduction of the euro, which is 3 percentage points more than in April 2006. There is only 1 percentage point decrease in this five-month period in the ratio of those who are in favour of the introduction of the euro. Opinion climate regarding the euro introduction Very much in favour in favour against Very much against [DK/NA] 0 7 11 1 7 0 8 9 1 9 09/2005 5 13 23 09/2004 6 33 10 20 Q14. Generally speaking, are most people you personally know more in favour or against the idea of introducing the euro in (OUR COUNTRY)? % 10 At present, the majority of the citizens in three of the New Member States say that most people they know are more against the idea of introducing the euro in their country. Respondents in Cyprus and in the Baltic countries are most likely to say that the people they know are against the adoption of the single currency. Such perceptions are also widespread in Slovakia, the Czech Republic, Poland and Malta as. Two countries in which the perceived opinion climate is clearly favourable (with 23% and %, respectively, not reporting any opposition in their wider neighbourhood) are Slovenia and despite a sudden increase of perceived opposition Hungary, similarly as we measured in April 2006. The attitude against the euro changeover increased slightly in seven of the ten New Member States, while decreased in two (in Slovenia and Estonia) from April 2006. There is no change in this respect in the Czech Republic. Respondents environment AGAINST introducing the euro 60 20 41 09/2004 09/2005 0 0 59 59 54 55 55 52 53 53 51 49 48 49 48 48 46 46 46 41 24 25 22 22 22 23 10 0 1 0 CY LT LV EE SK CZ PL MT HU SI Q14. Generally speaking, are most people you personally know more in favour or against the ide a of introducing the euro in (OUR COUNTRY)? Proportion of respondents claiming that the people they know are against the idea of introducing the euro in their country, % by country Summary Report, page 17

Flash EB N o 191 Introduction of the euro in the New Member States Gallup Besides the rational aspects, changing a national currency is an emotional issue as. A national currency represents the autonomy of the nation-state, and contributes to the national identity of the community of users. Eurobarometer looked at how people related to a future changeover to the euro emotionally, by asking whether or not they are happy that the euro will replace their national currency. Are people happy that the euro will replace their national currency? Very happy happy unhappy Very unhappy DK/NA] 0 9 13 10 0 9 1 3 10 09/2005 6 18 11 09/2004 8 16 10 Q15. Are you personally happy or not that the euro could replace the (NATIONAL CURRENCY)? % 10 Similarly to our findings in April 2006, we find that citizens in the New Member States are prepared at least mentally to have their currency replaced by the euro: 47% say they are very or quite happy about a future changeover, which is a difference of -1 percentage point compared to April 2006. This is again slightly above the % who gave a positive rational assessment of euro introduction (i.e. who said that the change will bring positive consequences for them). Opinions on the replacement of the national currency with the euro % very and rather happy % very and rather unhappy CY PRU S CZ ECH REPUBLIC ES TONIA HUN GAR Y LITHU A NIA 49 53 52 58 55 58 52 47 57 6 4 60 57 49 46 58 6 9 53 33 2 4 33 34 2 5 33 9/2004 9/2005 9/2004 9/2005 9 /20 04 9 /20 05 4 /20 06 9 /20 06 9/2004 9/2005 9 /20 04 9 /20 05 4 /20 06 9 /20 06 LATV IA MA LTA POLA ND SLOV ENIA SLOV AKIA 59 49 48 48 49 54 49 66 58 72 54 55 23 9/2004 21 9/2005 26 41 9/2004 9/2005 41 41 9/2004 34 9/2005 41 27 9/2004 34 9/2005 24 9/2004 9/2005 Q15. Are you personally happy or not that the euro could replace the (NATIONAL CURRENCY)? Slovenians are by far and increasingly the least attached to their current currency i.e. which will be abandoned after having been in use for only 11 years. Significantly more citizens are happy than unhappy in Slovenia and Slovakia and visibly more in Poland and Malta about the change (+49, +19, +8 and +7 percentage point difference). The majority are unhappy about this in four of the New Member States (Latvia: %, Cyprus: 58%, Estonia: 57% and Lithuania: 53%). page 18

Gallup Flash EB N o 191 Introduction of the euro in the New Member States The trends are again mixed here: the ratio of citizens happy about the euro changeover increases in five of ten New Member States, while decreases in the other five since April 2006. The increasing trend in this respect seems to be consistent in Slovenia (+8), Malta (+6) and the Czech Republic (+5), while the decreasing trend is consistent in Cyprus (-7). Hungarians have a clearly less favourable assessment of the changeover than five months ago, with 10 percentage points fewer citizens considering themselves happy about replacing their national currency with euro. Expectations and fears regarding adoption of the euro Maintaining price stability is one of the main objectives of EMU. The European Central Bank s track record in this regard has been reassuring with low inflation rates not exceeding 2.4% per annum since the introduction of the euro in 1999. Against this background, the survey also tests the expectations of the citizens in the New Member States as regards price stability. In contrast to previous experience and empirical evidence related to euro introduction in the current twelve Euro countries, most citizens in the New Member States continuously fear that the introduction of the euro will increase inflation in their country. Proportions did not change significantly over the past half year. Today still % agree with the statement that the euro will cause higher inflation as opposed to % with the contrary opinion. About a quarter of respondents could not or didn t want to answer our question. This assessment is not universal across the region, however. Despite a slight deterioration, Hungarians still dominantly see the euro as a vehicle for a more stable financial environment (43%, -2 percentage points from April 2006). In all other Member States the relative majority is still concerned that the euro will raise prices, even in those countries where a belief that the euro might help maintain price stability is not as low as in the Baltic countries or in New Member States from the Mediterranean region. The euro will help to maintain price stability 25 20 15 1 0 5 25 24 43 09/2004 09/2005 0 0 27 27 27 23 24 24 21 22 22 20 21 20 20 1 818 1 9 19 1 71 71 7 1 8 1 8 1 4 14 1 5 15 1 5 14 1 51 5 11 0 10 HU SK PL CZ SI EE LT LV MT CY Q17. Do you think the euro will help to maintain price stability or, on the contrary, increase inflation in (OUR COUNTRY)? % believing that the euro will help maintaining price stability, by country Opinions in this respect have been relatively stable in most countries over the past three years. In five of the ten New Member States (Estonia, Czech Republic, Slovenia, Poland and Slovakia) the ratio of citizens stating the euro would spark inflation decreased, while in the other five it increased (Hungary, Cyprus, Malta, Latvia and Lithuania). Summary Report, page 19

Flash EB N o 191 Introduction of the euro in the New Member States Gallup The Cypriots, Maltese and Latvians are the most pessimistic in this respect. The current Cypriot pessimistic rating outnumbers the optimistic one with 60 percentage points, and this score is 54 percentage points in Malta and 51 percentage points in Latvia. The Slovenians hold a very pessimistic view, too; 63% of them think that euro introduction will increase inflation (we should note here that in Slovenia a dual display system of the prices is already in place). In Slovenia the fear of potential inflation at or after a changeover has risen in 2006 to a level that we have only seen in the most sceptical countries. Since spring the Slovenian public maintains its sceptical position on the effect the euro will have on prices. An important change is currently taking place in Hungary. Although the proportion of those is the highest that say the euro would bring price stability and the ratio of those is the lowest that think inflation will be the result of the changeover, overall the pessimistic attitude increased by 5 percentage points since April 2006. The euro will give rise to inflation 80 60 20 48 48 46 09/2004 71 71 69 69 69 09/2005 67 66 65 62 63 61 61 6162 6162 0 59 0 55 54 54 55 5 4 51 51 49 47 46 43 43 43 2726 1 0 0 10 CY MT LV SI LT EE CZ PL SK HU Q17. Do you think the euro will help to maintain price stability or, on the contrary, increase inflation in (OUR COUNTRY)? % believing that the euro will give rise to inflation, by country There is still broad consensus in the New Member States that the euro is an international currency, one similar to the Japanese yen or the US dollar. Three quarters of New Member State citizens hold this view (75%), and 18% disagree. This opinion has not changed over the course of the past years, and there is little variation across countries in this regard. Image matters: those who regard the euro as an international currency comparable to the US dollar, are more inclined to support its introduction in their country, too. Slovenians are the most likely to agree here, with 85% answering yes (81% in April 2006); while Hungarians are the least convinced about such a status (67%; 72% in April 2006). page 20

Gallup Flash EB N o 191 Introduction of the euro in the New Member States Status of the euro as an international currency Yes No [DK/NA] 0 75 18 7 0 74 18 8 09/2005 72 20 8 09/2004 73 20 7 Q18. Do you think that the e uro is an international currency like the US dollar or the Japanese yen? % 10 There are several advantages of belonging to the eurozone that respondents universally acknowledged, virtually unchanged from April 2006. An undisputed advantage of joining the eurozone concerns tourists: all respondents in every country agreed that it would be more convenient to travel in another country of the euro area (ranging from 91% in Slovakia and Lithuania to 97% in Slovenia and Estonia). Almost nine out of ten people still widely agree that it will be easier to shop in other countries using the euro (89%, it was 90% in April 2006). Only 2 percentage points fewer respondents than in April 2006 agreed that comparing prices would become easier between countries in the eurozone (81%). Eight out of ten respondents (80%, +2) see benefits in the elimination of exchange charges within countries of the euro area, and this is the only item with on which slightly more respondents agreed than half a year ago. Expected positive effects of joining the eurozone Yes No... will allow you to easily compare prices between EU countries... will make purchasing in the EU countries easier... will eliminate charges for changing from one currency to another inside EU... will be more convenient for those who travel in other countries of EU... will protect from the effects of international crises 73 83 81 82 80 90 89 77 74 78 80 92 92 95 93 18 19 11 12 12 13 7 7 11 13 10 12 5 4 3 4 9/2004 9/2005 9/2004 9/2005 9/2004 9/2005 9/2004 9/2005 9/2004 9/2005 Q19. Do you think that the euro...? % 10 In each of these issues country variations are minimal: the dominant opinion is agreement throughout the ten countries. The item that split the New Member State citizens the most is the statement if the euro will eliminate charges for changing from one currency to another: while in Lithuania only half of the citizens agree with it (52%), in Hungary more than eight in ten citizens (86%) do so. Summary Report, page 21

Flash EB N o 191 Introduction of the euro in the New Member States Gallup A much less evident benefit of accession to the EMU for the respondents is the protection - or buffer - it provides in cases of international economic or other crises. More citizens agree than disagree that the euro will be able to provide such protection (%, -2 versus %, +2). Over a quarter of respondents (%) were not able to decide whether or not such benefits might be expected from eurozone membership. Can the euro protect the country from the effects of international crises? 1 00% 90% 80% % 60% % % % 20% 1 0% 0% Yes DK/NA No 24 26 22 33 20 22 21 26 34 26 26 52 47 46 33 1 0 SI SK MT HU CY EE PL CZ LT LV Q19e. Do you think that the euro...? Will protect [COUNTRY] from the effects of international crises? % 10 The most ambivalent countries are Latvia, Lithuania and the Czech Republic in this respect. In Latvia significantly more citizens disagree than agree with this statement, while in Lithuania and the Czech Republic these proportions are almost equal. In the remaining 10 countries a clear majority states that such advantages can be expected from belonging to the euro area. Looking at the various economic or political effects of euro introduction, people still agree that enlargement of the eurozone with their country will improve Europe s global significance (% compared to 68% in April 2006), and they also tend to believe that it will have a positive effect in the area of public finances (%, no change from April 2006). People are more sceptical about whether a change to the euro will ease their debt burdens: % agree and % disagree with the statement, and these figures did not change significantly from April 2006. Citizens are almost equally split (% agree and % disagree) that it would help increase employment or boost economic growth. There is no significant change in this item from April 2006 either. Potential political and economic advantages of adopting the euro Yes No DK/NA Will ensure lower interest rates, lower debt charges Will ensure sounder public finances Will reinforce the place of Europe in the world Will improve growth, employment 34 33 25 27 12 14 20 22 22 20 68 04/ 2006 09/ 2006 04/ 2006 09/ 2006 04/ 2006 09/ 2006 04/ 2006 09/ 2006 Q20. In your opinion, what are the main advantages of the adoption of the euro for (OUR COUNTRY)? % 10 page 22

Gallup Flash EB N o 191 Introduction of the euro in the New Member States As the table below shows, these opinions are consistent across the countries of the region, although there are a few notable exceptions. The Latvians and the Czech tend not to believe that credit charges will be more favourable after joining the eurozone, but the dynamics are different. While the Latvians reach their current % disapproval rate in this ranking with a +3 percentage point increase from April 2006, the Czech join them as tied-first with a -3 percentage point decrease from, spring. We also note here the significant change in Hungary: while in April 2006 only 23%, in already 34% disagreed with the statement that adopting the euro will ensure lower interest rates and debt charges. It is important to note that in each of the 10 countries the number of people who believe that the common currency can help a country to achieve healthier public finances outnumber the disbelievers. Although the proportion of respondents who are sceptic is highest in Cyprus, the ratio of optimistic and pessimistic citizens is almost equal in this country (% versus 34%). We measure the greatest increase from April 2006 in the ratio of citizens who do not believe the euro would ensure sounder public finances in Cyprus (+5), and the greatest decrease in this respect is in the Czech Republic (-9) and Estonia (-7). Will ensure lower interest rates, lower debt charges Will ensure sounder public finances Will reinforce the place of Europe in the world Will improve growth, employment Yes No Yes No Yes No Yes No 10 68 22 20 SI 48 47 57 53 27 71 68 21 22 22 66 HU 52 34 23 61 66 22 19 61 75 25 13 49 CY 27 27 34 67 73 17 13 PL 34 67 20 21 43 SK 34 27 67 71 21 16 34 43 MT 27 24 22 24 59 66 15 13 34 LT 34 26 61 63 18 18 51 52 23 24 LV 27 33 58 61 26 34 34 47 CZ 24 23 43 34 33 59 58 27 25 49 57 EE 22 21 33 33 25 65 18 22 There is no significant doubt in any country about a stronger global position of Europe after a eurozone enlargement; the ratio of those saying the euro will not reinforce the place of Europe in the world being the highest in Latvia (%, +2 from April 2006) and the Czech Republic (27%, -1 from April 2006). We should emphasize again the case of Hungary, where the highest increase is found in the ratio of sceptics: while 13% said no in April 2006 on the stronger position of Europe in the world, now 25% hold this view. The most controversial statement is still whether or not the introduction of the euro can increase economic growth and employment. A clear no can be heard from the same countries as in April 2006, mostly in decreasing proportions: Slovenia (%, -10 from April 2006), the Czech Republic (49%, -8 from April 2006), Latvia (47%, +3 from April 2006) and Slovakia (43%, -7 from April 2006). The highest increase in the ratio of pessimists we see again in Hungary (%, +6). At the same time, Lithuanians (51%, -1), Hungarians (%, -4) and the Polish (43%, +4) hope for such an effect of entering the eurozone. Summary Report, page 23

Flash EB N o 191 Introduction of the euro in the New Member States Gallup Similarly to the results from April 2006, more than half of the citizens in the New Member States agree that introducing the euro in their country will make them feel more European (%, it was 55% in April 2006), while % disagreed with the statement (-3 from April 2006). Using the euro will make people feel more European 68 67 63 62 59 47 agree disagree 48 4 4 4 6 43 4 1 54 66 10 SI CZ MT PL SK LV EE LT CY HU Q21e. Could you tell me for each of the following statements if you agree or disagree? % by country The variation remains quite large across countries. Respondents from Slovenia (68%), the Czech Republic (67%), Malta (63%) and Poland (62%) express very strong and quite strong agreement, while the population in Cyprus, Estonia and Lithuania is rather ambivalent in this question. Most Hungarians (66%) and Cypriots (54%) disagree they do not believe that using the single currency would make them more European seeing the issue in more instrumental terms. Looking at the extant of change: the proportion of disagreement is higher than it was in April 2006, with 6 percentage points in Hungary and Latvia (%, +6), and 5 percentage points in Cyprus. There are a number of fears people refer to in discussions about the euro. Most of them are only shared by a minority; however, by slightly more citizens in the ten New Member States now than in April 2006. Most people are not concerned about personal inconveniences caused by the changeover (%, -2 from April 2006). The majority of people is also not so worried that their country would lose control over its economy (55%, -4 from April 2006) or that adopting the euro would have a negative effect on their country s identity (53%, -5 from April 2006). What people are clearly afraid of are potential abuses around the time of the changeover. Three quarters are worried that they will be cheated during such a changeover (73%, -1 from April 2006). page 24

Gallup Flash EB N o 191 Introduction of the euro in the New Member States Fears regarding the adoption of the euro Agree Disagree DK/NA The replacement of the [CURRENCY] by the euro will cause you personally a lot of inconvenience You are afraid of abuses and cheating on prices during the changeover Adopting the euro will mean that [COUNTRY] will lose control over its economic policy Adopting the euro will mean that [COUNTRY] will lose a great deal of its identity 7 6 3 3 13 14 23 24 9 10 58 59 55 58 53 74 73 34 04/ 2006 09/ 2006 04/ 2006 09/ 2006 04/ 2006 09/ 2006 04/ 2006 09/ 2006 q21a-d. Could you tell me for each of the following statements if you agree or disagree? Respondents that were sceptical in April 2006 seem to maintain their attitude. The replacement of the [CURRENCY] by the euro will cause you personally a lot of inconvenience You are afraid of abuses and cheating on prices during the changeover Adopting the euro will mean that [COUNTRY] will lose control over its economic policy Adopting the euro will mean that [COUNTRY] will lose a great deal of its identity Agree Disagree Agree Disagree Agree Disagree Agree Disagree 10 58 73 74 24 23 55 59 34 53 58 CY 51 46 46 84 83 13 13 46 43 47 46 48 CZ 41 54 53 71 69 27 59 61 46 49 EE 41 52 46 69 72 24 21 48 48 HU 43 52 71 26 19 69 27 19 61 71 LT 48 46 77 75 18 21 41 52 51 33 34 LV 47 46 78 74 18 22 54 54 68 66 24 27 MT 48 47 46 83 79 13 15 26 54 55 54 PL 60 63 75 79 24 18 59 57 63 SI 20 21 79 78 66 33 61 63 34 61 62 SK 52 52 73 68 23 25 55 55 55 49 Potential cheating and abuses during the switchover make most people concerned in each country; Cypriots (84%, +1 from April 2006) and Maltese (83%, +4 from April 2006) think so in the highest number. The highest increase in the ratio of those who are afraid of this potential cheating and abuses we find in Hungary (71%, +7) and Slovakia (73%, +5). In five of ten countries the majority (even if a slim majority) is, however, not worried about personal inconveniences a changeover would bring to them, and also in another five countries more than % of citizens agree. Those who are concerned about this are in majority only in Cyprus (51%). Summary Report, page 25

Flash EB N o 191 Introduction of the euro in the New Member States Gallup The ratio of Cypriots (+5) and Polish (%, +6) being afraid of personal inconveniences increased with the highest percentage point from April 2006. Similarly, there is only one exception to the general trend of whether or not the countries will be able to retain or will lose control over their economic policies after they have joined the eurozone: the Latvian majority think that control will be lost after the adoption of the euro (54%, no change from April 2006). Remarkably large minorities share this opinion in some other countries (Cyprus, Estonia, Lithuania), while we see the highest increase in this opinion in Hungary (%, +9) and Malta (%, +6) from April 2006. We find a large diversity of opinions regarding the relationship between one s currency and national identity. The ratio of those agreeing with the statement that that the adoption of the euro will have a negative effect on their country s identity ranges from 27% in Hungary to 68% in Latvia. The clear majority from Latvia (68%, +2) and Lithuania (52%, +1) agree that losing their newly established currencies will harm their national identity. The highest increase in this opinion is found among Hungarians (27%, +8). page 26

Gallup Flash EB N o 191 Introduction of the euro in the New Member States Flash EB Series #191 Introduction of the euro in the New Member States Wave 4 Country Scorecards THE GALLUP ORGANIZATION Summary Report, page 27

CZECH REPUBLIC Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the Czech koruna? Very unhappy ; 12 unhappy ; Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all informed; 11 Not very infromed; DK/NA; 3 16 25 Very informed; 6 Note: new member states (inner pie graph) informed; Need for immediate information weeks befo re; 8 months before; DK/NA; 9 10 9 13 DK/NA ; 6 Very happy ; 9 happy ; A s soo n as possible; 25 years before; 33 48 47 CZ Happy / very happy 0 9/ '0 5 0 4 / '06 0 9/ '0 6 Q7. When would you like to be informed about the introduction of euro in the Czech Republic? [AMONG THOSE NOT WELL INFORMED] 48 CZ Well informed 2010 48 09 / '05 04/ ' 06 09/ '06 Dominantly expected date of joining the euro zone Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 75 83 83 78 78 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations Afraid of abuses and cheating on prices during the changeo ver banknotes 34 25 33 24 23 27 22 69 65 59 58 74 75 67 69 CZ 09/'06 CZ 04/'06 73 71 69 68 69 Have used euro 09 / '05 04/ '06 09/ ' 06 Most trusted information sources The euro will increase the inflation 51 Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? The changeover will cause perso nally a lot o f inconvenience 41 Natio nal Central B ank Co mmercial banks European Institutions 75 72 87 The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 46 CZ 09/'06 CZ 04/'06 GALLUP www.gallup europe.be European Commission

ESTONIA Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the Estonian kroon? Very unhappy; 20 unhappy; Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all informed; 12 Not very infromed; Note: new member states (inner pie graph) Need for immediate information weeks before; 6 months before; Very happy; 4 DK/NA; 11 13 10 9 DK/NA; 3 16 25 DK/NA ; 11 Very informed; 4 happy; informed; A s so on as po ssible; 27 years before; 26 24 48 47 EE Happy / very happy 0 9/ '0 5 0 4 / '06 0 9/ '0 6 34 Well informed 2008 09 / '05 04/ ' 06 09/ '06 Q7. When would you like to be informed about the introduction of euro in Estonia? [AMONG THOSE NOT WELL INFORMED] EE Dominantly expected date of joining the euro zone Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 82 77 82 72 73 76 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations banknotes 22 21 21 17 33 33 Afraid of abuses and cheating on prices during the changeo ver 61 63 57 43 65 66 61 61 Have used euro 09 / '05 04/ '06 09/ ' 06 EE 09/'06 EE 04/'06 73 69 72 Most trusted information sources The euro will increase the inflation 55 62 Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? The changeover will cause perso nally a lot o f inconvenience 41 Natio nal Central B ank European Institutio ns Go vernment, natio nal or regio nal authorities 60 63 83 The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 48 48 EE 09/'06 EE 04/'06 GALLUP www.gallup europe.be European Commission

CYPRUS Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the Cypriot pound? Very unhappy; 22 unhappy; Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all informed; 24 Not very infromed; Note: new member states (inner pie graph) Need for immediate information months befo re; 18 weeks before; 7 years before; 10 Very happy; 6 DK/NA; 11 13 10 9 DK/NA; 1 16 25 DK/NA ; 6 Very informed; 11 happy; 25 informed; As soon as possible; 59 48 47 CY Happy / very happy 0 9/ '0 5 0 4 / '06 0 9/ '0 6 Well informed 2008 09 / '05 04/ ' 06 09/ '06 Q7. When would you like to be informed about the introduction of euro in Cyprus? [AMONG THOSE NOT WELL INFORMED] CY Dominantly expected date of joining the euro zone Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 89 83 81 87 79 81 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations banknotes 11 15 Afraid of abuses and cheating on prices during the changeo ver 41 47 85 84 88 84 84 67 73 87 Have used euro 09 / '05 04/ '06 09/ ' 06 CY 09/'06 CY 04/'06 73 84 83 Most trusted information sources The euro will increase the inflation 71 69 Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? The changeover will cause perso nally a lot o f inconvenience 51 46 Natio nal Central B ank Go vernment, natio nal or regio nal authorities European Institutio ns 74 79 89 The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 47 46 43 CY 09/'06 CY 04/'06 GALLUP www.gallup europe.be European Commission

LATVIA Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the Latvian lat? Very unhappy; 25 unhappy; Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all informed; 24 Not very infromed; 49 Note: new member states (inner pie graph) Need for immediate information months before; DK/NA; 10 weeks before; 5 13 DK/NA; 0 16 Very happy; 3 10 9 25 DK/NA ; 4 Very informed; 7 happy; 23 informed; 20 A s so on as po ssible; 24 years before; 21 48 47 LV 26 Happy / very happy 0 9/ '0 5 0 4 / '06 0 9/ '0 6 Q7. When would you like to be informed about the introduction of euro in Latvia? [AMONG THOSE NOT WELL INFORMED] LV 2008 27 Well informed 09 / '05 04/ ' 06 09/ '06 Dominantly expected date of joining the euro zone Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 75 77 69 63 63 61 banknotes 52 51 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations 15 18 34 34 34 27 Afraid of abuses and cheating on prices during the changeo ver 54 55 58 61 47 54 53 Have used euro 09 / '05 04/ '06 09/ ' 06 LV 09/'06 LV 04/'06 73 78 74 Most trusted information sources Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? Natio nal Central B ank Go vernment, natio nal or regio nal authorities European Institutio ns 54 60 79 The euro will increase the inflation The changeover will cause perso nally a lot o f inconvenience The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 47 46 54 54 66 68 66 LV 09/'06 LV 04/'06 GALLUP www.gallup europe.be European Commission

LITHUANIA Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the litas? Very unhappy; 20 Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Note: new member states (inner pie graph) Need for immediate information months before; DK/NA; 15 unhappy; 33 Not at all informed; 11 Not very infromed; weeks before; 4 13 Very happy; 5 10 9 DK/NA; 2 16 25 DK/NA ; 5 Very informed; 5 happy; 27 informed; As soon as possible; years befo re; 25 48 47 33 LT Happy / very happy 0 9/ '0 5 0 4 / '06 0 9/ '0 6 Q7. When would you like to be informed about the introduction of euro in Lithuania? [AMONG THOSE NOT WELL INFORMED] LT Well informed 2008 09 / '05 04/ ' 06 09/ '06 Dominantly expected date of joining the euro zone Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 75 74 74 59 61 59 banknotes 46 47 47 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations Afraid of abuses and cheating on prices during the changeo ver 61 63 51 52 33 18 19 47 48 47 Have used euro 09 / '05 04/ '06 09/ ' 06 LT 09/'06 LT 04/'06 73 77 75 Most trusted information sources The euro will increase the inflation 62 61 Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? The changeover will cause perso nally a lot o f inconvenience Natio nal Central B ank European Institutions Journalists 51 68 The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 52 51 LT 09/'06 LT 04/'06 GALLUP www.gallup europe.be European Commission

HUNGARY Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the Hungarian forint? Very unhappy; 13 unhappy; Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all informed; 17 Not very infromed; 48 Note: new member states (inner pie graph) Need for immediate information weeks before; 6 months before; DK/NA; 9 13 Very happy; 6 10 9 DK/NA; 1 16 25 DK/NA; 5 Very informed; 3 happy; informed; A s soon as possible; 24 years before; 49 HU 46 48 47 Happy / very happy 0 9/ '0 5 0 4 / '06 0 9/ '0 6 Q7. When would you like to be informed about the introduction of euro in Hungary? [AMONG THOSE NOT WELL INFORMED] 34 HU Well informed 2012 09 / '05 04/ ' 06 09/ '06 Dominantly expected date of joining the euro zone Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 83 75 71 69 63 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations banknotes Afraid of abuses and cheating on prices during the changeo ver 59 55 49 46 61 75 52 43 61 66 59 57 58 Have used euro 09 / '05 04/ '06 09/ ' 06 73 71 HU 09/'06 HU 04/'06 Most trusted information sources The euro will increase the inflation Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? The changeover will cause perso nally a lot o f inconvenience 43 Natio nal Central B ank European Institutions Co mmercial banks 77 75 The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 27 19 19 HU 09/'06 HU 04/'06 GALLUP www.gallup europe.be European Commission

MALTA Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the Maltese lira? DK/NA; 12 Very happy; 12 M T Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 71 75 71 67 67 71 Very unhappy; 17 unhappy; 23 13 10 9 Note: new member states (inner pie graph) happy; 48 48 47 Happy / very happy 0 9/ '0 5 0 4 / '06 0 9/ '0 6 68 75 66 71 68 banknotes % of total coins % of who have seen Have seen euro Have used euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 09 / '05 04/ '06 09/ ' 06 Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all informed; 18 Not very infromed; Note: new member states (inner pie graph) Need for immediate information Q7. When would you like to be informed about the introduction of euro in Malta? [AMONG THOSE NOT WELL INFORMED] weeks before, 6 mo nths befo re, 23 years before, 11 DK/NA; 1 16 25 Very informed; 9 DK/NA, 4 informed; As soon as possible, 33 M T Well informed 2008 09 / '05 04/ ' 06 09/ '06 Dominantly expected date of joining the euro zone Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations 14 15 Afraid of abuses and cheating on prices during the changeo ver 27 47 59 66 63 MT 09/'06 MT 04/'06 73 83 79 Most trusted information sources The euro will increase the inflation 69 67 Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? The changeover will cause perso nally a lot o f inconvenience 48 47 Natio nal Central B ank Co mmercial banks European Institutions 68 83 87 The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 26 MT 09/'06 MT 04/'06 GALLUP www.gallup europe.be European Commission

POLAND Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the zloty? Very unhappy; 13 unhappy; Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all informed; 18 Not very infromed; Note: new member states (inner pie graph) Need for immediate information weeks before; 4 months before; 33 DK/NA; 10 13 DK/NA; 2 16 10 9 25 Very happy; 10 DK/NA ; 5 Very informed; 4 happy; informed; 33 A s so on as possible; years befo re; 34 48 P L 49 47 Happy / very happy 0 9/ '0 5 0 4 / '06 0 9/ '0 6 Q7. When would you like to be informed about the introduction of euro in Poland? [AMONG THOSE NOT WELL INFORMED] P L Well informed 2010 09 / '05 04/ ' 06 09/ '06 Dominantly expected date of joining the euro zone Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 80 82 78 77 banknotes 54 46 48 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations 27 Afraid of abuses and cheating on prices during the changeo ver 43 34 47 48 67 62 58 Have used euro 09 / '05 04/ '06 09/ ' 06 PL 09/'06 PL 04/'06 73 75 79 Most trusted information sources The euro will increase the inflation 43 Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? The changeover will cause perso nally a lot o f inconvenience Natio nal Central B ank European Institutio ns Co nsumer associatio ns 52 62 72 The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy PL 09/'06 PL 04/'06 GALLUP www.gallup europe.be European Commission

SLOVENIA Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the tolar? unhappy; 19 DK/NA; 4 Very unhappy; 4 Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all DK/NA; 1 80 SI Not very infromed; 13 informed; Note: new member states (inner pie graph) Need for immediate information weeks before; 17 mo nths befo re; 13 informed; 3 16 10 9 25 DK/NA ; 2 As soon as possible; 46 years before; 4 Dominantly expected date of joining the euro zone Most trusted information sources Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? 58 SI 72 48 47 0 9/ '0 5 0 4 / '06 0 9/ '0 6 Q7. When would you like to be informed about the introduction of euro in Slovenia? [AMONG THOSE NOT WELL INFORMED] Natio nal Central B ank European Institutio ns Co nsumer associatio ns Very happy; 15 happy; 57 Very informed; 13 Happy / very happy 60 Well informed 2007 83 09 / '05 04/ ' 06 09/ '06 82 79 92 Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 95 95 95 91 90 93 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations banknotes 22 24 27 Afraid of abuses and cheating on prices during the changeo ver The euro will increase the inflation The changeover will cause perso nally a lot o f inconvenience The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 20 21 86 84 85 83 71 68 68 66 57 53 49 48 47 85 83 Have used euro 09 / '05 04/ '06 09/ ' 06 34 SI 09/'06 SI 04/'06 73 66 63 65 SI 09/'06 SI 04/'06 GALLUP www.gallup europe.be European Commission

SLOVAKIA Introduction of the euro in the Public Preparedness Scorecard FLASH EUROBAROMETER 4 8 September, 2006 Support to the introduction of the euro Q.15. Are you personally happy or not that the euro could replace the Slovak koruna? Very unhappy; 10 unhappy; 26 Note: new member states (inner pie graph) Self perceived level of information Q6. To what extent do you feel informed about the euro? Do you feel Not at all informed; 15 Not very infromed; Note: new member states (inner pie graph) Need for immediate information weeks befo re; 6 months before; 25 DK/NA; 8 13 10 9 DK/NA; 2 16 25 DK/NA; 7 years before; 24 A s soo n as possible; Dominantly expected date of joining the euro zone Most trusted information sources Q8... please tell me if you would trust information they provide on the changeover to the euro, or not? SK 54 55 48 47 0 9/ '0 5 0 4 / '06 0 9/ '0 6 Q7. When would you like to be informed about the introduction of euro in Slovakia? [AMONG THOSE NOT WELL INFORMED] Natio nal Central B ank European Institutions Co mmercial banks Very happy; 14 Very informed; 8 happy; informed; Happy / very happy Well informed 2009 47 09 / '05 04/ ' 06 09/ '06 73 SK 82 92 Familiarity with the euro Q1/2. Have you already seen / used euro banknotes / coins? 71 66 76 75 69 71 % of total coins % of who have seen Have seen euro 0 9/ ' 05 0 4 / ' 06 0 9/ '0 6 Potential socio economic benefits Reinforce the place of Euro pe in the wo rld M ake peo ple feel mo re Euro pean Ensure sounder public finances Impro ve gro wth, emplo yment P rotect the co untry from the effects o f internatio nal crises Ensure lower interest rates, lo wer debt charges Help to maintain price stability Negative expectations banknotes Afraid of abuses and cheating on prices during the changeo ver The euro will increase the inflation The changeover will cause perso nally a lot o f inconvenience The euro will mean that countries will lose a great deal of their identity That (our country) will lose control over its economic po licy 34 60 59 58 58 59 57 52 67 71 57 57 Have used euro 09 / '05 04/ '06 09/ ' 06 43 SK 09/'06 SK 04/'06 73 73 68 SK 09/'06 SK 04/'06 GALLUP www.gallup europe.be European Commission