UK 5 euro coin
When launched, 1 euro - 1.17 $US in Jan 1999; it dropped to its lowest point in autum 2000 - 0.826 $US.
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Last
year saw a big leap in the number of forged euro coins,
according to data released by the European Commission today (22 January).
Over 26,000
counterfeit euro coins were last year found in circulation and removed by
national central banks - up from 2,339 in 2002. Two-euro
coins have seen the most counterfeit activity rising from just over 1000 forged
coins in 2002 to over 19,600 coins in 2003. Three
illegal coinshops were dismantled last year, two in
A holidaymaker is facing 10
years in a Greek prison after being accused of using
forged euro notes he said he bought at his local Post Office.
Graham Nichols, 45, has already been
held for four days in custody and must return
to
70 percent of German voters
would vote to have the Deutschmark back, if they got the chance, says a new poll. Seven out of ten German
voters would reject the euro if they were given the chance, a new poll has
shown.
COUNTERFEITERS are passing €300 notes in
The
silver strips on small euro notes are wearing away after heavy usage,
causing innocent people to be accused of forgery, reports the German tabloid
Bild. The paper cites the case of a woman who went to her bank and ended up
being questioned by the police. The note she had was genuine but it was
suspected of being fake because the strip had frayed off. This is not an
isolated occurance, reports Bild. A spokeswoman for a printing company in
The euro has now risen by a quarter against the dollar since its ignominious low point in the summer of 2001. It is still nearly 10pc below its starting rate at the beginning of 1999, but it has long ceased to be a junk currency, and the bankers are feeling better. For Germany, in particular, the rise in the currency could hardly have come at a worse time, since it will hurt the export businesses which are the country's best hope of recovery. Increasingly, the competition for those exports comes from the Far East, and particularly from China, whose currency is pegged to the dollar. Even before the dollar started to slide, the yuan looked ripe for revaluation, and the extra competitive edge the fall has given Chinese manufacturers makes the problem worse. Unfortunately for those proud euro-bankers, the rise in the euro is the converse of the weak dollar, rather than the result of any new-found optimism over the eurozone's economic prospects. In the middle of all this stands sterling. Other currencies fluctuate, but measured by its trade-weighted average - surely the most objective way to judge its international value - the pound has hardly budged for years. It is, in short, one of the world's most stable currencies. How fortunate we are to have such independence. ( The Telegraph 29/01/2003)
Finland is the most expensive eurozone country - the prices there are clearly higher than in any other country using the euro. An OECD comparison study showed that in September consumer prices in Finland were 16-17 per cent higher on average than in Germany or France, reports the Helsingin Sanomat. After the introduction of the euro, prices in both Germany and France have increased to nearly the same level as in Austria, Belgium, Luxemburg and the Netherlands. Only Denmark, which is not using the euro, was more expensive than Finland, but the difference was only two per cent. Non-alcoholic beverages, cigarettes, bread, accommodation, healthcare, newspapers and books all cost more in Finland than in any other eurozone country. (EUobserver.com 14.01.2003)
In Italy, where consumers have totally failed to get to grips with the new currency, Prime Minister Silvio Berlusconi is planning to reintroduce the "dual pricing" system which forces shops and businesses to display prices in both euros and lira. ( "No" bulletin 2/1/03)
Intesa, an umbrella organisation of the main consumer groups, said that the euro had added €1,800 (£1,170) to the average annual family budget. Italy President Ciampi said that the single currency had been a "major technical success" but it had undoubtedly driven up costs for most families and was "damaging the competitiveness of our products". According to one poll, 79per cent of Italians believe the euro has brought "more disadvantages than advantages" for consumers, a higher figure than in France or Germany. (Times January 04, 2003 )
Despite promises of stable inflation, prices soared across the Continent as traders took advantage of confusion to rip-off shoppers. And much-vaunted euro "transparency" is a myth, with a bottle of Coke selling for £1.22 in Frankfurt and 74p in Paris. A paperback book costs three times as much in Paris as in Madrid. Nescafe Gold Blend is £5.24 in Frankfurt and £2.80 in Rome. Supermarket prices have soared by ten per cent in France since E-day. The average Italian is £492 a year worse off, thanks to euro-related price rises. The Spanish are close to revolt as prices leap by up to 30 per cent for fish and meat. As Portugal hits the buffers, panicking finance minister Antonio de Sousa Franco wails: "Our economy is like a drowning man." Voters have turned angrily on politicians for conning them into a dangerous political adventure. More than half of Dutch and French people have called for a return to their old currencies. In Greece, militant consumer groups are boycotting shops and refuse to use phones or electricity at night. Bus fares in Athens have risen so much that public transport staff are refusing to collect them. In Germany, where more than 41,000 businesses have collapsed in 2002, almost one in three citizens want their Deutschmarks back. Shops responded by offering to take old marks in exchange for goods. And Italian retailers followed suit after 24million staged a shopping "strike". (The Sun 31/12/02) )
One year on from the introduction of the euro, the European Central Bank President Wim Duisenberg admits for the first time that the physical introduction of the euro has led to an increase in inflation. Mr Duisenberg’s statement in an interview to the Dutch television channel RTL-Z and in the Belgian newspaper 'de Financieel-Economische Tijd’, contradicts previous ECB’s statements and that of the EU Finance Ministers – that the euro introduction left no impact on inflation. (EUobserver.com 27/12/02)
RETAIL giant C&A bowed to furious shoppers yesterday and agreed to accept the Deutschmark again in its German stores. More than 60 per cent of Germans want their old currency back rather than the hated euro. C&A will take it in its 185 stores in Germany for a week starting on Saturday. Company spokesman Thorsten Rolfes said: "If customers say please do it longer then we will. "The wish of our customers is the most important thing." A growing number of German retailers are taking the old currency in the run-up to Christmas. Chancellor Gerhard Schroeder banned the Deutschmark as day-to-day currency in February following the launch of the euro on January 1. But a landmark court case in October ruled it was still legal for shops to accept Deutschmarks. ( The Sun 29/11/02)
According to a survey conducted by the Forsa Institute, 61 percent of Germans want to replace the euro with the Deutschmark. The reason for this seems to be that 95 percent of Germans think that prices have gone up since the introduction of the euro, according to the same poll. Anti-euro sentiment in Germany is growing. A poll conducted in March for the INRA institute showed that 46 percent of Germans thought that they should have kept the DM and 81 percent thought that prices had gone up. Furthermore, only 38 percent currently believe that the euro has been a "positive thing" for them and 90 percent still calculate in DM when making purchases. This may explain another poll released this week by MediaTransfer that showed that 55 percent of Germans have made fewer purchases since the introduction of the euro. This in turn explains why retailers say they are experiencing "the worst period since the war". ("No" Bulletin 18/10/02)
Events this week caused several Eurozone figures to declare the Stability Pact "dead". French Senator, Philippe Marini, said, "The Stability Pact has to be re-read. It doesn't exist any more" (Bloomberg, 17 October). Jorg Kramer at Invesco Asset Management in Frankfurt said, "this is the final nail in the coffin for the Stability Pact" (Die Welt, 17 October) and Rudiger Pohl said, "I think the pact is dead". These developments make it more difficult for Tony Blair to claim that we would be joining a "successful single currency" if we joined the euro. He is also going to find it difficult to persuade the British people that we should swap the economic framework which has delivered low unemployment and steady growth for one which even Romano Prodi has admitted is stupid. ("No" Bulletin 18/10/02)
Hundreds of thousands of Greeks joined yesterday a massive shoppers strike in order to express their growing anger over price rises, believed to be caused by the introduction of the single currency. Greece's main consumer group, Consumer Protection Institute, called a one-day boycott of shops and services, claiming that businesses have deliberately increased prises since the launch of the euro. (EUobserver.com 4/9/02)
The introduction of the euro has not reduced bank charges. Like most MEPs, I have a euro-denominated account in Belgium. But when I used a cash-point in France or wrote a cheque in Spain, I found I was paying exactly the same commission as I would have done before the change-over. On average, these fees are 17 per cent, although in some cases they are as high as 24 per cent. Indeed, it is sometimes cheaper to move money between Britain and the euro-zone than between two euro-zone members, thanks to the United Kingdom's relatively efficient banking system. Admittedly, the EU is now seeking to curb these transaction costs through a new directive. But this, paradoxically, destroys one of the main arguments for membership: if bank charges can simply be scrapped by degree, then we plainly don't have to be part of a single currency to benefit. (22 Aug 2002 Daniel Hannan's Euro briefing) Banks are raising charges all round to get around the new directive- Ed.
Derek Simpson, the new head of the Amicus union, intends to ballot members on their opinions on the euro and has pledged an immediate "audit" into the amount of money given to the euro lobby. Mr Simpson said, "I want the union's money spent on the members, not euro propaganda" (Times, 22 August 2002).
The British anti-euro campaign is planning to sue the UK government under the European Convention for the Protection of Human Rights claiming that the government's referendum legislation violates European human rights law. The No campaign is arguing that the Elections and Referendums Act 2000 gives their opponents an unfair advantage. Under the act, political parties and campaigners face a spending restriction for months before a poll, while the government meets the restrictions only 28 days before the actual referendum. The director of the No campaign, George Eustice, said that they will take whatever action is necessary to make this a fair fight. "The spending restrictions in the act are totally unfair and against human rights law. It simply cannot be right that the No campaign is restricted in a referendum while the government is free to spend as much public money as it likes on euro propaganda," argued Mr Eustice. The Electoral Commission is to investigate the No campaign's claims. (EUobserver.com 12/8/02)
The introduction of the euro has pushed up weekly shopping bills for the average French household by 10 per cent, the country's biggest consumer association said yesterday. After one of the largest surveys into the impact of the single currency on prices, the French Consumer Union (UFC) alleged that the cost of some fresh goods had more than doubled. Shampoo, soap and beauty products had increased by 40 per cent. The findings will startle not only French consumers but also British holidaymakers travelling to Europe for the first time since the euro was introduced in January. A spokesman for Business for Sterling, part of the No campaign, said similar price rises would be seen in Britain if the euro were adopted here. George Eustice, its campaign director, said: "There are huge costs associated with the introduction of the euro. "Eurozone businesses have found it very easy to exploit confusion and pass these costs on to the consumer. "The same would happen in Britain." Business for Sterling also claimed that, in countries which had adopted the euro, 83 per cent of people think that prices have been rounded up since its introduction. It says the amount charged for many groceries and leisure activities had risen in Spain, Greece, Italy, Germany, Austria, Holland, Ireland and France. The increase mirrors the public perception that prices were rounded up in Britain after decimalisation in 1971. Some economists believe this contributed to huge inflation in the early 1970s. (Daily Telegraph 24/08/2002)
Government admits that euro changeover plan would cost NHS millions. In the Government's Sixth Report on euro Preparations, it was admitted that Government Departments have now spent over £30 million on euro preparations. The report also included estimates on how much it would cost NHS trusts to convert to the euro. The average trust would have to commit 8.5 staff years to convert to the euro and in addition spend over 63,000. On the basis of average wage costs in the NHS, the total cost of time and resources across all NHS Trusts in Britain would be in the region of £225 million. ("No" bulletin 25 July 2002)
A new report published by the CBI and PricewaterhouseCoopers has shown that banks and insurance companies are cutting back on spending for euro entry. Only 15 percent of financial services firms surveyed planned to invest in euro preparations over the coming months compared to 27 percent in December. Neither finance houses nor life insurance companies planned to spend any money at all. ("No" bulletin 11/4/02)
A Commission survey reveals that two out of three people in the EU think prices have risen since the introduction of the single currency. Overall, of the 12,700 people questioned across the 12 states that make up Euroland, some 68,5% thought that prices have risen in all sectors. This ranges from forty per cent in Austria to 80 per cent in Spain. The Commission survey also confirmed German anger about rising prices in the gastronomic industry which led to the teuro conference on Friday: cafes and restaurants were seen as the worst offenders with 84% saying that they had increased prices after January 1st. The German finance minister, Hans Eichel, said that "we are noticing price increases in many places, which is bad for the consumer and for the just-beginning economic upturn." A few black sheep are leading to consumers generally buying less which "is a problem that depresses economic growth" said Eichel to the Welt am Sonntag, reported in the Süddeutsche. (EUobserver.com 3/6/02)
THE party is over for the euro in Germany. A majority of the country which more than any other embraced the concept and birth of the single currency now longs for the return of the deutschmark. Fifty four per-cent of Germans polled by the prestigious Allensbach Institute said they want the euro replaced by the old mark, the trusted building block of the economic miracle. The response comes shortly after the German government admitted that price gouging by unscrupulous traders had been a major factor contributing to a drop in consumer spending and confidence. Germany spent billions in campaigning for the euro, on its introduction and on a campaign persuading the public it was a good thing. That such a majority now favour its farewell will send shock waves through the Schröder government, already trailing badly in opinion polls just months before September’s general election. Eighty one per-cent of Germans in the same poll said they still calculate prices in shops in deutschmarks - the reason perhaps why so many have flooded the government with complaints about price hikes. In a separate poll undertaken in east Germany by the best selling magazine Super Illu 60 per cent of respondents said they wanted the deutschmark back. That was 14 per cent more anti-euro than the last poll taken by the magazine in March. Ten days ago the German government and its national bank finally admitted what the public has been telling them since 1 January - that the euro has sent prices through the roof. "We made the mistake of allowing commerce to regulate itself and that was a blunder on our part," said Hans Eichel, finance minister. (The Scotsman 21 May 2002)
Further data are emerging to confirm the view, reported in previous issues of the Digest, that the physical introduction of the euro has caused damage to the Euroland economy. In addition to driving up inflation, it appears that the change-over has also dampened consumer spending. The fear of price rises, indeed, and the perception (in Germany, above all) that the euro has made things more expensive, have caused consumers to cut back on their spending. "January was a disaster," says Joachim Bernsdorff, a Frankfurt financial analyst. February is looking pretty grim as well, although the first official figures for February will not be available until the middle of March. Some key representatives from the retail trade are now expressing the fear that this decline in spending might set the tone for the whole year. [Handelsblatt, 26th February 2002]
Two out of three euro zone consumers (67%) felt the euro changeover resulted in rounding up of prices, according to the latest survey carried out by the EU Commission. On Thursday their judgement was backed by new official inflation figures showing that euro zone annual inflation jumped to 2.7 per cent in January from 2 per cent in December. (EUobserver.com 4/3/02)
Berlin: The European Central Bank has launched new tests into the safety of the euro after a German man claimed that contact with the new 10 notes had made him impotent (Allan Hall writes). Wolfgang Fritz is one of thousands of Germans who are claiming mysterious allergies and ailments from handling the note, worth £6.50. One newspaper listed complaints that included aches, pains, itching, soreness and even attacks on the immune system. Sufferers claim that the culprit is a tin-based chemical, tributyltin or TBT, which is 20 times more toxic than dioxin. (The Times 2/3/02)
Ed Balls, Chief Economic Adviser to the Treasury, speaking at a Chatham House Conference on 25 February, said, "too often over the last 100 years we have had decisions made with a political imperative overriding economic reasons. We can't let a short term political imperative override long term economic factors." He said several times that the five economic tests must show "settled and durable" convergence and stressed how difficult entry would be in the foreseeable future. "If interest rates and the exchange rate come down sharply you haven't got settled and durable convergence." He also attacked the claim that the pound is too strong, saying "another way to describe that is euro weakness." In a slapdown to advocates of artificial devaluation he said, "we've had a very poor experience of trying to deliver stability by managing the exchange rate. The only way to do it would be to drop the inflation target." The tests "aren't a snapshot in time" but would have to show that "at the rate we went in at we could have settled and durable convergence through time." The idea that we need to join the euro to have "influence" in Europe is wrong, and that our economic success was more important for our influence. He said, "if you are stable and strong economically you can play that leading political role." The euro does not eliminate currency risk. "In the euro you don't eliminate exchange rate movements because the euro moves against other currencies." Britain was growing faster than other economies because the Bank of England is able to respond quickly and doesn't have the problem of the ECB's bias towards deflation. He said, "The UK economy is growing more quickly than other industrial economies. The reason for that is that the Monetary Policy Committee, running a symmetrical inflation target, acted quickly to cut interest rates." ("No" bulletin 28/2/02)
Europe Minister Peter Hain caused a row at the heart of Government earlier in the week after making several blunders in an interview with the French Newspaper Le Figaro. Hain claimed that "the enemies of the euro are the enemies of Europe." ("No" Bulletin 22/2/02)
Local campaigners in Manchester, northern England, fear that the design of the new euro notes could cost the visually impaired a fortune throughout Europe. After carrying out a series of tests, the Stockport Institute for the Blind found that many blind people could not tell the difference between a 100 euro note and a 500 euro note. Most blind people immediately recognise British bank notes by their different widths - sterling notes go up in size by about five millimetres as the value increases. But the high value euro notes are the same size. (Euobserver.com 20/02/20)
Germany has experienced significant price rises over the past six months, according to findings published on Tuesday by the German consumer watchdog Verbraucherzentralen Bundesverband (VZBV), although it is unclear to what extent this can be attributed to the euro. Whilst product prices have been rising significantly since June of last year, an increase in prices for services (for example, at hairdressers) was only slight prior to 1 January, the day of introduction for euro notes and coins. VZBV surveyed 841 products and 216 services in total. They found that in 30 per cent of products prices had risen by an amount up to 30 per cent since June. In a further 20 per cent of products, prices were seen to fall by up to 20 per cent. According to a spokesperson from VZBV, product prices were seen to decline slightly in January as retailers sought to introduce promotional pricing. "But the overall trend over the months since June, in Germany at least, has been for prices to be creeping upwards," said the spokesman. From January, prices charged for services have been seen to rise significantly, mainly, according to VZBV, because of the tendency to round prices up to just below the whole euro-mark. For example, 2.83 euros might become 2.99 euros. In 60 per cent of the services surveyed, prices were seen to rise by up to 40 per cent since June. (EUobserver.com 25.01.2002) The first official admission that euro changeover had led to price rises came in a survey this week by the French General Directorate for Competition. The findings contradict official claims that there had been no euro inflation. The survey found that small businesses and the service sector have been most prone to rounding up. The survey found that soft drinks have risen by nearly 2 percent and to hire a video is nearly 5 percent more expensive (Times, 22 January 2002).
Map blunder may force destruction of 10bn euro notes** Apparently these notes carry a map which was used illegally. The French company M-Sat says it holds the copyright for a satelite map of Europe printed on the back of every note and did not authorise its use. The company could demand (under anti-counterfeting laws) that all notes be destroyed but is more likely to demand compensation of millions of . Euros. Lawyers say that the European Central Bank's head Wim Duisenberg should be charged with counterfeiting. The bank, apparently, thought it had bought the rights from an Austrian company but this company only had the right to use the map. (Daily Mail Jan 25, 2002 and FFP)
"Consumers are being ripped off in the changeover to the euro, a nationwide prices survey has revealed. "Prices have increased for a wide range of goods and services since January 1, the Consumer Association of Ireland (CAI) said last night. "In some cases prices have shot up by as much as 10 percent, though the general level of increase is less than that. The biggest culprits are pubs, restaurants and doctors, according to the CAI. "Many traders have used the confusion surrounding the new currency to mask significant price increases. . . "CAI Chairman Michael Kilcoyne said the survey found 'clear enough evidence' of widespread price increases. "He said the problem was not the result of traders rounding up the price when converting from punts to euro. He said they increased their prices first and then converted the higher price to euro,and some increases have been 'substantial.' "The survey was carried out in a number of towns around the country during the first 10 to 12 days of the new currency. (Irish Independent, Thursday 17 January)
IRISH counterfeiters have failed in one of their first attempts to cash in on the euro by missing out the 'o' on a forged one euro coin. The 'eur' was tendered in a shop in Castleblayney, Co Monaghan, at the weekend and is believed to be the first forged euro coin to be discovered in Ireland. In addition to the spelling error, the coin also had a smooth, not a serrated edge. Significantly, the word 'euro' appears on the one euro coin, and in this case, the 'o' was missing from it. It was also faded, as if the coin may have been in circulation for 30 or 40 years. A number of forged euro notes have already turned up in Ireland in the two weeks since the introduction of the common currency in 12 European Union states. (Daily Telegraph 15/01/2002)
SWEDES were fuming last night after their country was depicted as a limp WILLY on the new euro coins. Brussels insiders are mischievously claiming that euro chiefs deliberately set out to humiliate Sweden for staying out of the single currency, like Britain and Denmark. The embarrassing image is the result of Sweden’s neighbour Norway, a non-EU country, being cut out of a map on the coins. (The Sun 11/1/02)
A survey of seven different sectors by Test Achats, the Belgian consumer association, has revealed a 7 percent average increase in prices, with taxis, cafés and the leisure industry being most to blame (FT, 8 January). Die Welt opens a leading article by asserting that "the euphoria over notes and coins has not lasted long because more and more consumers are realising that they are getting less for their new money" (9 January). Consumer research in Germany has revealed that there are "dramatic" price increases in 72 percent of cases in shops which are not part of a chain. Jim Murray, Director of BEUC, the European consumer group, announces that "very few people are reporting price reductions" (FT, 8 January 2002).
Mafiosi in the Balkans have been having a field day with the change-over from Deutschmarks to euros. Montenegro and Kosovo, which both adopted the DM as their official currency, are both notorious Mafia statelets which make huge profits from smuggling drug, cigarette, arms and people. The Montenegrins changed DM 1 million into euros in the first few days – quite a lot for a country with a total population of 300,000, with no questions asked. Nebojša Medojevic, the Director of the Centre for the Transition to the euro in the Montenegrin capital Podgorica said the change-over was "an opportunity of which the Mafia could only dream. Instead of an expensive and complicated way of laundering money, Mafiosi can simply go to the bank, their pockets stuffed with cash and pay it into a bank account." These large sums in such a supposedly poor country were, however, dwarfed by the sums laundered in UN-administered Kosovo. Some DM 800 million were paid into private bank accounts in the final weeks of 2001: no questions were asked about where this money came from. Once again, therefore, the international community has come to the aid of the Albanian killers and drug-runners on whose behalf it bombed Yugoslavia in 1999. [Vesna Peric Zimonjic, Die Welt, 7th January 2002] (European Foundation Intelligence Digest 10th January 2002)
THE Chinese government gave the euro its much-coveted seal of approval yesterday, announcing that it would switch part of its vast dollar reserves into the world's emerging "reserve currency", Chinese finance minister Xiang Huaicheng said the flawless launch of notes and coins has swept away the lingering doubts about monetary union and opened the way for a recovery on the exchange markets. "I will instruct the responsible authorities that they should not just have a currency basket but rather that they should buy euros as quickly as possible," he said, after a meeting in Shanghai with German finance minister, Hans Eichel. (Daily Telegraph London 7/1/02). The trade off for China is that they can participate in the EU's Galileo satellite navigation system . China will dump a great deal of its people's currency reserves into Galileo to gain favour with the EU. China knows without these bribes to prop up the EU politicians and their foolish schemes China would be vilified by the peoples of Europe for their civil rights crimes, torture, harvesting and marketing of human organs. (E-mail G L-W 10/1/02)
The press and government agencies were congratulating themselves on the success of the euro launch. Last week on Monday 31 December 2001 through Tuesday,Wednesday and Thursday 3 January 2002 the Interflora service shut down because the main Dutch flower market was unable to cope with the euro changeover. No flowers over here could be delivered. The chaos continues. (Personal experience/Interflora 8/1/02)
Coins displaying irregular-shaped national symbols — such as the German eagle — are showing a tendency to fall with the symbol upwards. That may be worth remembering if England play Germany in the World Cup finals. Two Polish mathematicians, Tomasz Gliszczynski and Waclaw Zawadowski, set their university statistics classes to research the subject with the Belgian euro coin. Out of 250 spins, 140 showed the head of the Belgian monarch, King Albert, while 110 showed the one-euro symbol. The test was carried out by spinning the coins on a table rather than tossing them in the air. An unscientific but mind-numbingly thorough test in the Times office showed a similar bias for the German one-euro coin, both spinning it on the desk and tossing it in the air. The eagle came out top 60 times out of 100 mid-air tosses and 54 times when spun on a flat surface. "The euro is asymmetrical," concludes Dr Gliszczynski, who lectures in statistical sciences at the Podlaska Academy in the eastern Polish city of Siedlce. The diameter and the weight of the one-euro coins are standardised throughout Europe, but each country has its own symbols on one side. (The Times JANUARY 04 2002)
Strippers in Italy are being given magnetic underwear to cope with tips from punters paying in euros. A night club owner commissioned the magnetic panties as customers who used to put lira notes in the lap dancers' knickers are now starting to use euro coins. Franco Babuin, owner of the Mille Lire club in Preganziol, says his girls complained about the thought of coins in their knickers. He told Il Nuovo website: "When the ladies got around, the customers used to put a 1000 lira banknote in their underwear to thank them for the exhibition. "Now they're using 50 Euro cents coins, which are worth roughly 1000 lira, but strippers complain at the idea of sticking coins in their underpants. "We have therefore commissioned magnetic undies so that the donations will remain attached to them, rather than having to be inserted." (Annanova 7th January 2002)
Germany is retaining the DM as a hidden currency and would seem to have increased their gold reserves from around 7 Billion to around 35 Billion in the last couple of years with a view to refloating the DM when the Euro collapses and France has let slip that although it is calling in all the nations Francs it has NO intention of destroying them, but will stock pile them for re-release when the Euro collapses. (Private e-mail from G L-W 31/12/01)
A low denomination Thai coin worth 10 baht, weighing roughly the same, with the same diameter and metallic structure as the 2 euro coin, will be accepted by all machines. Since 10 baht is equivalent to €0.25, the potential for fraud is huge. Over 2 million Europeans visit Thailand each year. Anyone could stock up on 10 baht coins, feed them into vending machines which give change and make a sizeable profit. This problem will certainly not be solved before 1 January, according to the Bundesbank. (Le Monde on 13 December)
Bill Morris, General Secretary of the Transport and General Workers Union, this week warned the Government against taking Britain into the euro prematurely, arguing that it would have a disastrous affect on British jobs. In a speech to the Executive of the Transport and General Workers' Union on 4 December ahead of a manufacturing conference organised by the DTI, Mr Morris said that a "headlong dash for the single currency would be a tragic diversion for manufacturing." Mr Morris continued, "A callous call to bounce Britain into the Euro by an ill-timed referendum irrespective of the economic consequences will damage British manufacturing and bounce thousands of workers out of their jobs. Our members will not be bounced out of their jobs for the sake of the euro." ("No" bulletin 6/12/01)
CRIMINALS are offering interest-free loans for everything from house improvements to car loans in a bid to launder their ill-gotten gains ahead of the introduction of the euro. Panic is understood to be setting in among criminals with considerable stashes of punts given that they have now less than one month to convert the hidden cash into euros. Authorities in Limerick have confirmed that one of the city's leading drug gangs has touted householders in large estates with the offer of interest-free loans. Sums of up to £3,000 are being offered by the criminals to householders on condition they get the money back in euros and without interest. The householders are being given up to three years to repay the loans but now run the risk of being caught up in a city-wide sweep on criminals by the CAB brought in at the behest of Limerick Chief Supt Gerry Kelly. The Criminal Assets Bureau probe initially centred on leading members of a north side based drugs gang but according to garda sources "the ripple effect is running large and wide". The probe is now understood to have expanded and may well end up focussing on up to 20 members of the gang and associates. (Irish Independent December 3rd 01)
There are 17 different mints throughout the eurozone and they all have slightly different processes. While the coins may look and feel the same they are all different so far as the automatic machinery that recognises them is concerned. Money Controls the Oldham based coin-handling specialist is selling 5,000 machines a week with Germany the biggest market. (Financial Times 3/12/01)
France and Germany have warned that a referendum on the euro in Britain would put the euro "on trial". A referendum could cause problems for the euro on the money markets. They have also made it clear that Britain is not under pressure to join in the near future (Times, 6 November 2001).
The European Union finally, on Monday, reached agreement to force banks and building societies to cut the cost of cross-border transfers in euros from 2003. The decision came after a long battle to defeat opposition from a number of member states with Germany in the lead, reports the Financial Times. Under the final proposal drafted by Belgium, which holds the EU's rotating presidency, the rules will only apply to charges of up to E12,500, rather than E50,000 as proposed by the Commission. A recent Commission study found the average charge for a cross-border charge for a E100 bank transfer in euros was E24 - much higher than domestic payments. The plans, which need to be approved by the European Parliament, suggests that the cost of cross-border card payments and cash withdrawals would be reduced to the domestic level by July 1 2002. (EUobserver.com 27/11/01)
New Customs and Excise figures show that the dollar is far more important than the euro for British trade. Last year, 46 percent of British goods exports were invoiced in sterling, 29 percent in dollars, and 21 percent in euros and old EMU currencies put together. For British imports, 42 percent were invoiced in sterling, 34 percent in dollars and 19 percent in euros and old EMU currencies. * One of the euro lobby's most repeated arguments is that Britain needs to join the euro to bring more stability to British exporters. But these figures show that joining the euro would do the opposite. Because the dollar is more important for British trade, exporters have been helped by the fact that the pound has been stable against the dollar. By joining the euro, and having to endure the instability between the euro and the dollar, exporters would find currency volatility far more of a problem. ("No" campaign bulletin 22/11/01)
The Netherlands has experienced its first major theft of euro notes before its introduction in January. According to the Dutch police, a masked man stole €250,000 from an Amsterdam bank. This is the sixth major euro robbery, as criminals cash in on the movement of unprecedented amounts of notes and coins. The largest robbery was the theft of €1.2 million by a German driver from his own van. There are also concerns that the introduction of the euro will be disrupted by the mass production of forged euro notes. According to Europol, there has been a run on the specialised ink and paper used to produce bank notes, indicating the involvement of well organised criminal groups (Guardian, 15 November)
German Finance Minister Hans Eichel has said that he plans a programme of privatisations to bring the government's budget deficit within the limits set by the Eurozone's Stability and Growth Pact. Earlier in the week Mr Eichel said that the European Commission had warned him that Germany would have a government deficit of 2.6 percent of GDP. This is dangerously close to the 3 percent limit after which fines apply. The slowing German economy has left the government with an overall shortfall of ?9.8bn (FT, 10 November). The move follows the announcement last month of emergency privatisation measures in Italy and France to meet Eurozone targets. The French government announced a plan to meet a pledge to the European Commission to achieve a balanced budget by 2004. A crucial element of the plan involved a sell-off of the French motorway company Autoroutes de Sud (FT, 17 October). The Italian government also announced its plan to meet its deficit target - by selling off government-owned real estate. The government hopes to raise £4.8 billion from the sales (FT, 1 October).
Government hopes of making an early switch to euro notes and coins before the next general election have been dealt a blow by a warning from Britain's banks that it would be difficult to complete the transaction in time. Banks would more time to convert their branch accounting and payment systems. Eurozone banks have 5 years to complete the changeover but British banks would have half the time. The cost of the changeover to British banks has been estimated to be £1.5bn. (Financial Times 30/6/01)
Simulations conducted by Oxford Economic Forecasting (OEF) show that joining the euro would make the British economy more vulnerable to external shocks. The OEF report, commissioned by the Financial Times, finds that a slowdown caused by a fall in stock market prices or a rise in the price of oil would be more severe for the UK inside the Eurozone. Eurozone countries have less of their wealth concentrated in equities and they would be less affected by falling share prices. Interest rates would not fall to levels required by Britain. A rise in the price of oil would also disproportionately affect Britain. The record of the ECB suggests it would be more likely than the Bank of England to raise interest rates to combat inflation. This would result in slower growth in the UK than the rest of the Eurozone (Financial Times, 14 June 2001).
German consumer groups are complaining that businesses are raising prices by as much as 10 per cent to prepare for the introduction of the euro in six months’ time, reports the Times. Europe's banks warned, according to the Financial Times on Monday that an increase in prices as a result of the introduction of euro notes and coins could push up euro-zone inflation by up to 1 percentage point. The German Consumer groups say that in April a bottle of apple schnapps cost DM11. The euro price alongside it is now 5.99, although at the present exchange rate that works out at DM11.79. Overnight an Alfa Romeo Spider sports car has gone up from DM 67,060 to 34,287 euro — a price rise of more than DM1,000 marks or £330. Even the authorities are taking advantage: in Chemnitz, parking meters that cost DM2 an hour will be converted to 1.20 — or DM2.35. (EUobserver.12/6/01) Unilever, the consumer products group, acknowledged yesterday that the imminent introduction of the euro had helped accelerate price increases on some of its products in continental Europe. Unilever, the maker of Dove soap and Lipton's tea, fears that it will be unable to raise prices shortly before and after the euro's debut in 2002, as price changes could add to the confusion in the transition to the new notes and coins. Unilever has decided to implement increases on certain products early - to avoid being mired in stagnant prices at the end of 2001 and early next year. Although it stressed the euro was just one factor in its price-setting policy, Unilever's stance is likely to be controversial, given the support for the euro by Niall FitzGerald, the company's co-chairman. Mr FitzGerald is chairman of the business leaders' group of Britain in Europe, a lobby group that supports the euro. (Financial Times 26/6/01)
This week revealed more evidence of growing doubts across the Eurozone regarding the introduction of the single currency. Former French Interior and Defence Minister, Jean-Pierre Chevenement, advocated delaying the introduction of euro bills and coins. In an interview to French radio station Europe 1, M. Chevenement warned that the changeover on 1 January 2002 will cause widespread confusion and damage economic growth: "Can you imagine the widespread distrust that will arise when we will have to use these coins on which we see only bridges that go nowhere and windows that open onto nothing?" He went on: "If the aim is to erase the memory of the franc, to erase France, to drown it like a puppy in a river, then that should be made clear." ("No" bulletin 26/4/01)
Just one per cent of German companies have converted their bookkeeping to Euros and time is fast running out - with a deadline of 1 January 2002. Germany is the largest European state to have announced its intention to adopt the Euro - though it is showing few signs of having the systems in place to do so. Tax consultant Datev, whose programs are used by over two thirds of German companies, has revealed that Germany is not yet acting to replace the Deutschmark. Two million accounts are stored with Datev in Nuremberg, but only 20,000 are recorded in Euros. Claudia Erhardt, responsible for the Euro at Datev, said: "It is likely that most of them will only change over at the last minute and that there will then be considerable problems." In her opinion the Euro is proving unattractive to German business because of the many record lows of the past year. The worst case scenario for companies who miss the changeover to the Euro is that they will be left unable to trade in the domestic market. (Tuesday 17th April 2001 CHANNEL: CFO)
European financial institutions are increasingly concerned that the massive Russian sales of German marks by Russians is putting pressure on the euro, NTV reported on 10 April. Russians are doing so, the station said, out of fear that they will not be able to convert their marks after the euro becomes the official currency of the EU next year. Bundesbank head Ernst Welteke arrived in Moscow the same day to reassure the Russian government that his bank will guarantee the continued exchange of marks in the future and hence that there is no need for exchanges now.( RADIO FREE EUROPE/RADIO LIBERTY Security Watch Vol. 2, No. 15, 16 March 2001) http://www.rferl.org/securitywatch/
THE European Commission will table a tough new law today forcing banks to stop charging "through the nose" for euro payments from one country to another, conceding that its softly-softly approach over the past year has yielded nothing. Frits Bolkestein, the single market commissioner, said it was outrageous that banks continued to charge an average of Eu17 for each Eu100 transfer across borders within the euro zone given that there were no currency transactions involved, He said the banks had failed to deliver on promises to correct the abuses and would now be disciplined by the full force of EU law. "The European Commission has lost its patience," he said. "Once euro notes and coins come into force next January, people will not expect to have to pay through the nose when they want to move euros for another member state." Under the new proposal, which requires the backing of both the European Parliament and EU ministers, banks will not be allowed to charge higher fees for cross-border payments than they do for internal payments. They will have 18 months to act, after which EU governments will be legally obliged to stop the practice. The rules will also apply to Britain, Denmark and Sweden if the transfer is carried out in euros, even though they are not members of the euro zone. The commission found that fees varied enormously by country, with Portugal topping the list at Eu31 for a Eul00 transaction. Luxembourg was the lowest at Eu9.6 but EU officials said that even this was excessive and needed to be brought down sharply. (Daily Telegraph 26/7/01)
The advantage of the euro, we are continually assured by its fan club , is that it will reduce transaction costs and make it easier to take money all over Europe. A reader who has an account with Credit Agricole was intrigued to receive a question-and-answer leaflet in which 14 bank asked "can I use my 'euro' cheque book everywhere in Europe?" The answer was "No, the 'euro' cheque book is not a European cheque book. Its use is limited only to France." Meanwhile the European Commission admits that average bank charges on sums transferred from one eurozone country to another have actually risen from 17.10 per cent to 17.36 per cent. (Sunday Telegraph, July 25, 2001)
It was announced last week that 80 million euro coins minted in France will not fit German vending machines, because the coins being minted in Germany are slightly larger. (Sunday Telegraph, July 25, 2001)
The European Commission has warned that European travellers will still face heavy charges for transferring money from one Eurozone country to another even after the introduction next year of euro notes and coins. In particular, the Commission said that travellers would find withdrawing cash from an automated teller machine "very expensive" once they crossed into another euro-zone country, even though the bank notes would be the same as those at home. Although the euro notes and coins will be legal tender throughout the Eurozone, there will still be 12 "retail payments areas". The Commission has said that the physical introduction of the euro "naturally calls for the establishment of a European payments area, but the work under way is progressing too slowly and may not be completed by next January." The Commission added: "the public will not understand this situation". ("NO" bulletin 5/4/01)
Addressing the European Parliament in Strasbourg on Tuesday, Pedro Solbes, Commissioner for Economic and Monetary affairs, admitted that there are problems in preparing for the introduction of the new euro notes and coins in 2002. "One out of four people believe that euros issued in their own country cannot be used in other countries," said Mr Solbes. "One in five people don't know that after the changeover period they will not be able to use their own currency." Mr Solbes described such statistics as worrying and expressed concern that the information campaigns that had been launched to make people aware of the single currency were having only a limited effect. "It is difficult to get consumers interested in something that is a long way off," he explained. The Commissioner also pointed out that, whilst the preparation that many companies are undertaking is satisfactory, half of all Small and Medium Enterprises (SMEs) are not even thinking about January 2002. "We have to change the mindset of SMEs," said Mr Solbes. (EUobserver.com 4/4/01)
The towns and villages of France are to be flooded with hundreds of thousands of fake euro notes when a new French "Save the franc" group start their activities on 27 March, writes the Telegraph. The ultimate goal of the campaign is to force President Chirac to hold a referendum on the euro. The anti-euro alliance also plans a legal battle to prevent ordinary bank accounts being automatically converted into euros by the summer, as the French government intends. (EUobserver.com 19/3/01) http://souverainete.ifrance.com/souverainete/sommaire.htm
Three hundred days before euro notes and coins are due to be introduced in the Euroland countries, all parties in the German Bundestag have called on the banking industry to agree to change unlimited quantities of cash for free. "It would be an essential contribution to the success of the euro," said the Chairman of the Bundestag finance committee, Christine Scheel. For the time being, only state banks like the Sparkassen (savings banks), Landesbanken (state regional banks) and the Post Office bank have agreed to do this. Other banks have said that they will agree to exchange for free only sums which are "usual for households". Consumers associations have criticised these varying arrangements, saying that all DM – euro exchanges should be cost free, especially in view of the fact that 500,000 German citizens have no bank account. Mrs Scheel also pointed out that many Germans keep large amounts of cash at home: the total amount, according to the Bundesbank, is over DM 100 billion (£30bn). [Handelsblatt, 8th May 2001] What Frau Scheel failed to mention is that there will also be billions of DM in cash held in Central and Eastern European countries, where the DM operates as a parallel currency. How the holders of DM cash there get to exchange their money for euros is anyone’s guess. (Euro Foundation 9/3/01)
German doctors have warned that euro coins will be poisonous to many people as they contain 25% nickel, which can provoke allergic reactions. Six per cent of men and 11 per cent of women examined have some form of allergy to nickel. (Daily Telegraph 24/2/01). The one- and two-euro coins are some 25 per cent nickel - 500 times the concentration permitted by the EU's own regulations for watches and jewellry. Nickel is a potentially poisonous metal for large numbers of people. It causes them severe pain from violent skin reactions. Jewellers avoid the use of nickel as much as possible, except at low levels and always with a warning on the packaging. German doctors are saying that millions of people in the eurozone will be at risk from January, especially shop assistants and bank clerks who are handling coinage all day long. Professor Thomas Fuchs told a Berlin-based reporter from the Daily Mail: "Nickel allergies are the number one contact allergy in the world. I don't understand why the coins have so much nickel in them." The best response an EU spokesman could manage was: "The nickel is high quality". (Eurofaq posting 10/8/01). Millions of people who eagerly grab their new coins could see their hands turn into a scaly, diseased mass after minutes. The British Journal of Dermatology warns the coins could cause eczema among 45 million people. Austrian doctors brand them a 'very dirty currency'. City traders have called the euro, which has fallen sharply in value, a 'toilet currency' because it was going down the pan. Bank tellers and shop assistants have been advised to wear gloves for work, or to get a new job. The €1and €2 coins - worth 60p and £1.20 - contain high levels of nickel. European bureaucrats agreed to include the metal despite warnings that allergy to nickel affects up to one in seven people, particularly women. Medical researchers have conducted tests showing the coins can make far more people sick than the currencies they replace. (December 30, 2001 The Observer). The 1 and 2 euro coins contain 50 times more nickel than the EU allows in imitation jewellery, according to Norwegian paper Verdens Gang. 32 year old Rosanna Hoffmann from Ludwigshafen in Germany was hospitalised because of a violent reaction to nickel, allegedly released by the euro coins. Thomas Fuchs, a doctor and president of the German allergy association, is shocked, commenting, according to Verdens Gang: "It is completely incomprehensible that they have used nickel in the new euro coins." (EUobserver.com 08.01.2002)
Nickel Effect.
Since 1999 the EU Nickel Directive has outlawed the use of jewellery alloys that
release nickel onto the skin, and with good reason. Some people have a strong
allergy to nickel and the results can be serious, as the following account
shows. It appeared in the winter issue the newsletter of the Birmingham Assay
Office. A young lady had her ears pierced for her fifteenth birth- day. Two
years later she had a horrible itchy, raw weeping neck, which was finally
diagnosed as the result of a strong allergy to nickel. The consul- tant
explained that the fashion- able, but not expensive, ear- rings, which were her
pride and joy, had probably been the cause. This has seriously compromised her
life. Most people understand that such an allergy will require them to avoid
jewellery containing nickel; but it was a surprise for her to learn that she
must not hold change for the bus in her hand, or take on any job which involved
handling money. All her clothes had to have their zips and studs removed. She
had to change her watch and she could not handle many kitchen implements. The
most distressing prohibition she experienced, and still does, was the banning of
some of her favourite foods because they have a nickel content which could trigger
a distressing reaction. Among the foods, which she can no longer enjoy, are
wholemeal bread, oranges, tomatoes, lettuce, spinach, peas, pulses of all kinds,
rasp- berries, shellfish and red wine. They constitute a large part of a healthy
diet and, worse, are among her favourite foods. What she misses most is baked
beans. The Assay Master advises that you are safe with silver or yellow gold. In
the past white gold often contained nickel but nowadays manufactured items must
comply with the directive. The Editor thinks that you should be careful about
second hand jewellery. (Consumer News The Journal of the National
Consumer Federation Issue 213 April & May 2002 )
Every country in the euro zone is preparing a "catastrophe plan" in case the currency launch goes horribly wrong next January. This includes the deployment of "the army", according to Didier Reynders, Belgian Finance Minister and Eurogroup president. The European Parliament voted for the creation of a "European Public Security Force", a sort of European Union gendarmerie.(Dailt Telegraph Eurofile 20/1/01)
TENSIONS are mounting across Europe over the huge cost of replacing national currencies with the euro on January 1 2002. European governments are refusing to pick up the bill. At a meeting in September, euro-area finance ministers ruled that the burden would have to be borne by end-users such as banks, retailers, restaurants and transport companies, but they failed to come up with a precise plan of action. Banks and retailers are embroiled in bitter negotiations over the issue of costs. Retailers are demanding delayed payment terms but have so far failed to convince their bankers. (Daily Telegraph Tuesday 14th November 2000)
The European Central Bank appointed Publicis, the French advertising agency, as advisers for a campaign to smooth the launch of euro notes and coins in January 2002. The contract, estimated at £19 million to £40 million, will require Publicis to "prepare the general public so that euro notes and coins are favourably received". (FT 5/11/99).The European Central Bank is to spend £48m on a campaign to prepare citizens for the transition to euro notes and coins at the start of 2002. It will not extend to Britain. (Daily Telegraph 3/11/00)
Europe's leading retailers have warned finance ministers that the cash economy will "crash" hours after the introduction of euro notes and coins unless plans for that day are changed. The European Retail Round Table, whose members include Carrefour and Metro, the world's second and third largest retail groups, as well as Tesco, Sainsbury, and Royal Ahold, the leading Dutch chain, is writing to every European Union finance minister ahead of next month's Ecofin meeting at Versailles, urging a rethink on "E-day" plans. A draft letter, passed to the Financial Times, highlights independent research by Insead and WHU Koblenz, the French and German business schools, which it says shows that "the cash economy will crash just hours into the first trading day of 2002. This is because there will be insufficient euro notes and coins in circulation". (FT 28/8/00)
The end is nigh for the euro. For the European Commission in choosing the familiar symbol for the euro - a Greek e with an extra line - has trodden on the toes of Thomas Cook, who own the trademark for an almost identical symbol. The logo for Interpayment, a travellers cheque company which Thomas Cook acquired in 1995, was first trademarked back in 1989 and the Commission could face having to drop the symbol even though it has become well established in the media. "It was inspired by the Greek letter epsilon in reference to the cradle of European civilisation and to the first letter of the word 'Europe'", reads the Commission's website, adding laughably, "the parallel lines represent the stability of the euro." (Evening Standard Monday 7th August 2000)
Bank customers moving money across borders between Eurozone borders still face huge charges despite the introduction of the single currency. An independent survey for the European Commission of Eurozone countries showed that the average fee for moving 100 euros (£61) across borders is £10.50, compared to less than 60p for a similar transfer between banks in the same country. (BfS briefing on survey for the European Commission 25/5/00)
Germany's Bundesbank is facing up to the prospect of what to do with the 2,500 tons of cash set to land on its doorstep when the new European single currency notes and coins come into circulation. The German central bank expects to be flooded with around 250 billion marks ($140 billion) in old mark-denominated notes that must be disposed of in a secure way. What to do with the mountains of paper has left Bundesbank policy-makers stumped for a solution. The relatively harmless paper that gets passed hand-to-hand daily is too dangerous to bury under German soil -- it doesn't meet the country's stringent compost regulations because its special ink contains too much copper. (FRANKFURT Reuters 6/8/99)
In Europe's biggest banks have been summoned to Brussels to answer claims that they had been deliberately over-charging customers for converting euro currencies since the euro was launched. The bank's actions have robbed supporters of the single currency of one of their main propaganda tools, that it would cut foreign exchange costs for holidaymakers, travellers and businesses. But what banks have lost on the old buy-sell spread for foreign exchange, are now making up in hefty charges. Some banks are charging around 4% for switching from one euro zone currency to another, despite the fact that exchange rates have been fixed. (Daily Telegraph 5 February 1999)
In order to minimise tax avoidance, the Europeans cancel the currency every ten years or so. New notes and coins renders old one's obsolete; and so hoarders of cash have at some point to present their old money to the bank, with a convincing explanation. This is in stark contrast to the USA who still use the identical notes that have been around for the majority of this century. This is one reason why the euro will not replace the dollar. (Princeton Economics 22 February 1999)
Claims that EU banks collude over hefty fees for changing currency or sending funds from one country to another are to be investigated at a public hearing before the EP's monetary sub-committee in Brussels. A survey by committee chairwoman Christa Randzio-Plath shows EU currency exchange fees range from one per cent at Spain's Banco Santander to 3.75 per cent at Germany's Commerzbank. Luxembourg's Credit Lyonnais even charges different rates for changing different currencies within the euro zone where all exchange rates are fixed. Its rate for changing French francs and Deutschmarks is half a per cent - but it charges twice as much for changing Italian lire. Meanwhile the German Bfg Bank makes no charge for changing currency into US dollars. Ms Randzio-Plath accused the banks of failing to pass on to consumers cost savings introduced with the euro's elimination of currency risks. Referring to suggestions that banks in different countries are colluding to set unnecessarily high exchange rate fees, Ms Randzio-Plath said: 'I want an investigation into the question of price cartels by both national authorities and by the European Commission. It could be that it is just a coincidence that fee structures are similar in any one country - or that there are price cartels operating on a country-by-country basis rather than across the EU.' (Euro MP Newsletter 5/2/99) -- The European Commission warned leading banks in Germany and the Netherlands on Friday that it has evidence they colluded to fix currency exchange charges in the 11 countries where the euro circulates. The commission warned that the banks could face heavy fines if the charges are confirmed. The 17 German and 15 Dutch institutions include some of the best-known names in European banking such as Dresdner Bank and Commerzbank in Germany, and ABN AMRO Bank and ING Bank in the Netherlands. (BRUSSELS, Belgium AP 4/8/00) And we were told that the single currency would abolish the cost of changing euro money! - Ed
THE Italian Mafia has printed millions of counterfeit euro banknotes which are already in circulation, police intelligence sources have told The Telegraph. The disclosure is the first "concrete evidence", as one officer described it, that criminal gangs are stockpiling huge amounts of euros in order to flood the currency markets when the notes are officially brought into circulation in 2002. Officers from Britain's National Criminal Intelligence Service, which gathers information about international crime, said that the emergence of fake notes so soon after the euro's launch this month confirmed what they have long feared - that the new European currency will be accompanied by a huge rise in money-laundering, counterfeiting and bank robberies. The notes are in circulation because many people in Italy believe they are already legal tender and have been duped into exchanging them for lire. Although banks have traded the euro since January 1, notes and coins will not be introduced until January 2002. Police in Britain, which initially is staying outside the "Euroland" of 11 EU countries signed up to the euro, have also uncovered evidence that organised criminals throughout Europe are buying huge amounts of sterling in preparation for the launch. Gangsters throughout Europe will have to transfer their illegal cash - more than £100 billion of cash in Europe is of dubious origin - into a form that will survive the pulping of the 11 Euroland currencies in 2002. Wayne Smith, the head of specialist crime at NCIS, said there already were signs that criminals were shifting their assets into sterling. (Electronic Telegraph 31/1/99)
The Commission is worried about unacceptable currency converters so it has laid down a rigid specification of how they should appear. The converters should be pocket sized. To protect those whose currency does not have divisions such as the Italians, the converters should show decimals in distinctive colours. The currency symbol must be displayed next to the amounts. Pre-programmed converters should cost 1.5 euros, programmable ones 5 euros. (The European 6/4/98)
The 200 and 500 Euro notes will displace the dollar as the favourite currency for drug dealers, gangsters and tax evaders. It is estimated that up to £45bn currently held in the underground around the world could be transferred into the Euro because of the large denominations. The issuing national bank earns seigniorage, an interest free loan, from issuing banknotes. (The Times 27/4/98)
European retailers could face costs up to £18bn from the introduction of the EMU according to the EuroCommerce report. Contributory factors are the timing of the changeover on the 1st January and the extended period of two-currency working. (FT24/11/97)
Europe’s vending machine operators have warned that millions of drink dispensers, ticket machines, parking meters and other coin operated equipment could stop working on January 1 2002 when the new euro coins come into use. The operators say the directors of the mints that produce the coins have relaxed the specification, which make it harder to spot counterfeits. Frequent rejection of the coins could undermine public acceptance of the new currency. The operators are also angry that they are not allowed to have samples of the coins already minted. (FT 31/1/00) The Automatic Vending Association said entering the euro could drive much of the £1bn a year industry out of business unless the government paid the transition costs. It will cost £83m to replace or reprogram its 390,000 coin mechanisms. The industry was also concerned about increased fraud because of loose technical specifications for euro coins agreed by the EU finance ministers. Manufacturing tolerances were four times as great as those used for sterling coins. (FT 19/7/00)
Under EMU manufacturers will have to change the size of products which are designed to hit particular consumer price thresholds, e.g. 49p, 99p and GBP1.99. Commercial sectors, such as chemicals will have to agree joint action on conversion. This will be baffling for highly diversified groups. (FT21/1/97)
The European Parliament has voted to adopt a common design for all Euro coins. This will exclude the Queen's head from our coins if we join the common currency. (Europe Now BBC R4 4/11/97) Designs for Euro coins will have to be changed because they confuse vending machines. The machines are unable to distinguish between 20 cent and 50 cent coins. The coins have the same electronic signatures used by machines to detect the different values. (FT 13/2/98). The European Blind Union also objected to the design of the coins but it transpired they were sent the wrong samples. (FT13/6/98) To accommodate blind people and the vending industry the 50 and 10-cent coins will have scalloped edges and the 50-cent coins will be heavier. France has already produced 9 million 10cent coins. (FT 30/7/98)
The conversion of coin handling machines in the EU will cost GBP11bn. (FT 28/1/97)
Europe's two largest coin producers yesterday warned that order delays and specification changes for the euro could disrupt the production timetable for the physical introduction of the European single currency in 2002. Only 50% will be minted on time owing to delays in issuing tenders to the coin producers. (Financial Times 16 March 1999)
Millions of coins have already been produced with varying sizes and weights which threaten to cause havoc to coin-operated mechanisms." It is nothing short of an invitation to forgers," said Catherine Piana of the Euro vending Assoc. "All machines are having to be recalibrated to accept the variations. Which means imitations produced by forgers are more likely to be accepted (Thanks for telling us!) by the machines." It costs £30 every time a machine is recalibrated. Ms. Piana added " For some companies the euro is going to be a complete disaster and many are either going to go out of business or have to sell up to bigger operations." Eurosceptic MP Bill Cash said, "These bungling idiots are now on the brink of undermining the European economy which is already being shattered by the weak euro. Not only is there massive unemployment but now the euro will become a cover for conmen." (Sunday Mail, 06/02/00)
No Eurozone country is allowed to put its head of state on Euro coins when they're issued on 1 Jan 2002. The British Government has already 'asked' if the Queen's Head can be put on Euro coins if we ever join the Euro and the answer was 'No'. Earlier this year, the Vatican City was officially declared part of the Eurozone. The Vatican has been given special permission by the Commission to mint its own Euro coins with the Pope's head on one side of them. As a result, Euro coins with the Pope's head on will circulate throughout Euroland/Eurozone countries. (UKIP East 19/11/99)
The Magic Circle has appealed to the EU to increase the size of Euro coins. The proposed examples are much too small to do disappearing tricks. (BBC R4 Euro File 24/12/97)
The proposed design of Euro notes will have to be changed since the plates for the hologram were stolen in transit between Paris and Munich. (Evening Standard 22/5/98). Senior police officers are concerned that the arrival of the euro could intensify criminal activity, including forgery. Restrictions may be placed on the size of cash transactions. Banknotes will be printed in nine countries and the ECB will have to ensure quality control on an unprecedented scale. Problems in exchanging information between police forces, it can take three months to get information out of Italy, will lead to pressure for a single EU-wide crime legislation and law enforcement policies. (FT 14/7/98). The ECB wants photocopiers to be made incapable of reproducing the euro banknotes. (D Telegraph 27/7/98)(FFP). The introduction of the euro offers some of the best breaks available to criminals. A Brussels conference on fraud was told that the main threat companies face comes from dishonest insiders and outside consultants, particularly those brought in to handle computer problems or currency conversion programmes. (FT 26/11/). Forgery is punished by 30 years imprisonment in France but that, in Italy, it is an achievement if a forger spends one year inside. [Stéphane Albouy, Le Parisien, 5th June 2001]
Polish counterfeiters have cottoned onto the fact that huge quantities of D-marks will have to be swiftly returned to Germany for exchange. They are stepping up production of fake currency in the hope that the notes will pass unnoticed. (European 20/4/98)
Each country will produce its own version of Euro notes with their own anti-forgery systems. With nine versions in circulation notes will have to be returned to the country of issue to tell if it is genuine or not. (European 15/3/98)