New Members Urged To Fast Track Euro Launch

The European Commission urged the EU's 10 new member states to "speed up" their preparations for adopting the currency.

In a report issued on practical preparations, the European Commission urged the mostly ex-communist states to introduce euro notes and coins from the start, in a "big bang scenario", rather than having a transition phase before the full-blown launch.

Joaquin Almunia, EU Commissioner of Monetary Affairs, said, "the introduction of the euro in the new countries should be faster and even smoother than in the current eurozone members since an average of 50% of the population has already used euro notes and coins".

"Although the euro is already an established and successful currency, preparations for its adoption in the new member states should not be underestimated or delayed if we want to ensure a wide public acceptance and a smooth transition," he said.

Before they join the euro, the new EU states must first spend at least two years in a second-generation Exchange Rate Mechanism (ERM II), which sets fluctuation limits between their currencies and the euro.

Three countries - Estonia, Lithuania and Slovenia - joined ERM II in June, with the aim of adopting the euro in 2007, while Cyprus also wants to join then, the Brussels report noted.

Malta, Latvia and Slovakia are aiming to join from 2008, Poland and the Czech Republic from 2009 and Hungary in 2010, it said.