Oficialus vertimas 2007 12 04 government of the republic of lithuania resolution no 417 of 25 april 2007 amending resolu

Oficialus vertimas 2007 12 04 GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION No 417 of 25 April 2007 AMENDING RESOLUTION NO 1050 OF 29 SEPTEMBER 2005 OF THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA ON THE APPROVAL OF THE NATIONAL CHANGEOVER PLAN AND LITHUANIA’S PUBLIC INFORMATION AND COMMUNICATION STRATEGY FOR THE ADOPTION OF THE EURO Vilnius The Government of the Republic of Lithuania h a s r e s o l v e d:

To amend Resolution No 1050 of 29 September 2005 of the Government of the Republic of Lithuania on the Approval of the National Changeover Plan and Lithuania’s Public Information and Communication Strategy for the Adoption of the Euro (Valstybės žinios (Official Gazette) No 117-4235, 2005; No 75-2869, 2006) and to word it as follows: “GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION ON THE APPROVAL OF THE NATIONAL CHANGEOVER PLAN AND LITHUANIA’S PUBLIC INFORMATION AND COMMUNICATION STRATEGY FOR THE ADOPTION OF THE EURO Having regard to the proposals made by the Commission for the Coordination of the Adoption of the Euro in the Republic of Lithuania, formed by Resolution No 592 of 30 May 2005 of the Government of the Republic of Lithuania (Valstybės žinios (Official Gazette), No 69-2471, 2005; No 1-20, 2007), in its meeting of 14 March 2007, the Government of the Republic of Lithuania h a s r e s o l v e d:

To approve the appended:

Prime Minister Gediminas Kirkilas Acting Minister of Finance Zigmantas Balčytis APPROVED by Resolution No 1050 of 29 September 2005 of the Government of the Republic of Lithuania (as amended by Resolution No 417 of 25 April 2007 of the Government of the Republic of Lithuania) NATIONAL CHANGEOVER PLAN I. GENERAL PROVISIONS 1. The aim of the National Changeover Plan (hereinafter referred to as “the Plan”) is to set out the key elements of the euro adoption process (changeover from the litas to the euro) in the Republic of Lithuania and the measures to ensure the protection of consumer interests, a smooth changeover and public awareness.

The Plan sets out the key principles and elements of the euro adoption process, describes the preparation for this process and identifies the areas of responsibility of individual sectors as well as consumer protection measures.

II. LEGAL FRAMEWORK LEGAL regulation in the European Union 4. The criteria and the decision-making procedure concerning the adoption of the euro are laid down in the consolidated version of the Treaty establishing the European Community (Valstybės žinios (Official Gazette) No 2-2, 2004) and its Protocols (hereinafter referred to as “the Treaty”). Article 122(2) of the Treaty establishes that at least once every two years, or at the request of a Member State with a derogation defined in this Article (hereinafter referred to as “the derogation”), the European Commission and the European Central Bank in accordance with the procedure laid down in Article 121(1) of the Treaty shall prepare convergence reports that assess whether the Member States meet economic and legal criteria of the adoption of the euro. Decisions concerning the abrogation of the derogation, the euro adoption date and the irrevocably fixed conversion rate between the euro and the national currency shall be adopted by the European Union Council in accordance with the procedures laid down in Articles 121-123 of the Treaty.

5.1. Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro (OJ 2004 Special edition, Chapter 10, Volume 1, p. 81) (hereinafter referred to as Regulation (EC) No 1103/97);

5.2. Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro (OJ 2004 Special edition, Chapter 10, Volume 1, p. 111) (hereinafter referred to as Regulation (EC) No 974/98) as amended by Council Regulation (EC) No 2169/2005 of 21 December 2005 (OJ 2005 L 346, p.1), in order to prepare a smooth changeover to the euro for the new European Union Member States;

5.3. Council Regulation (EC) No 2866/98 of 31 December 1998 on the conversion rates between the euro and the currencies of the Member States adopting the euro (hereinafter referred to as Regulation (EC) No 2866/98).

ADAPTATION OF THE NATIONAL LAW TO THE EURO ADOPTION 8. The Bank of Lithuania has drafted the Law of the Republic of Lithuania on the Adoption of the Euro, with the main principles of the changeover in the Republic of Lithuania (conversion of the litas to the euro, cash exchange, withdrawal of the litas from circulation, publication of the images of euro banknotes and coins, mandatory dual display of prices, etc.). The Law will be passed by the Seimas of the Republic of Lithuania only after the European Union Council adopts a decision on the abrogation of the derogation and the adoption of the euro in the Republic of Lithuania.

9.1. Legal acts that will be in force in the preparatory stage and regulate relations related to the mandatory dual display of prices, frontloading of euros to market participants. After the adoption of the euro these legal acts should be repelled;

9.2. Legal acts that will be in force at the moment of the euro adoption and in the dual circulation period and regulate relations related to resolution of possible disputes over the dual circulation, as well as legal acts regulating labour or staff relations. These legal acts should be repelled after the end of the dual circulation period;

9.3. Legal acts that will ensure the use of the euro as legal tender in all economic sectors of Lithuania and in private life after the adoption of the euro. These are legal acts related to the abrogation of the limitation set in the national law prescribing that the litas shall be the only legal tender, and legal acts applicable to the economic sectors listed in the draft Law of the Republic of Lithuania on the Adoption of the Euro in the Republic of Lithuania and intended to ensure the implementation of the provisions of that Law.

III. COORDINATING BODIES AND MEASURES 11. The main institutions responsible for the adoption of the euro in the Republic of Lithuania are the Government of the Republic of Lithuania and the Bank of Lithuania. The preparation of the Republic of Lithuania for the euro adoption is coordinated by the Commission for the Coordination of the Adoption of the Euro in the Republic of Lithuania set up by Resolution No 592 of 30 May 2005 of the Government of the Republic of Lithuania and led by the Prime Minister of the Republic of Lithuania. The Prime Minister of the Republic of Lithuania is the Chairman of the Commission, and the Minister of Finance of the Republic of Lithuania and the Chairman of the Board of the Bank of Lithuania have been appointed Deputy Chairpersons of the Commission.

IV. KEY EURO ADOPTION PRINCIPLES AND ELEMENTS PRINCIPLES Continuity of Contracts and Financial Instruments 14. The changeover from the litas to the euro will not affect the continuity of transactions and financial instruments. After the changeover, all documents containing references to the litas will be valid until their original expiry date indicated therein. The value denominated in the litas will mean the value denominated in the euro as converted by applying the irrevocably fixed conversion rate of the euro vis-à-vis the litas.

Consumer Protection 15. The adoption of the euro shall not affect economic interests of consumers. All possible measures will be taken to prevent wrongful conversion of prices, wages, pensions, social benefits, etc.

Self-Preparations by Economic Entities 16. Economic entities are responsible for ensuring their own organisational and technical readiness for the changeover, including the adjustment of their information systems. Costs incurred by economic entities in relation to the adoption of the euro will not be reimbursed.

Costs of the Changeover 17. The costs of the preparation for the changeover in the Republic of Lithuania, i.e. minting of euro coins, exchange of litas banknotes and coins for euro banknotes and coins, restructuring of the payment system, etc., will be covered by the Bank of Lithuania. The costs incurred by public authorities in relation to the adoption of the euro will be financed from the general appropriations of these authorities. scenario, time periods and elements of THE changeover 18. Given the size of the State, the structure of its financial system and the experience in currency changeover gained by public authorities of the Republic of Lithuania through the re-introduction of the litas in 1993, no transitional period is planned (the euro adoption date and the cash changeover date fall on the same day). No phasing-out period is planned, either.

Preparatory period 7 months before the euro adoption date

CONVERSION of the Litas into the Euro AND ROUNDING 21. From the euro adoption date, every reference in legal acts, contracts and other documents to the litas will be considered a reference to the euro, and amounts in the litas will be considered amounts in the euro as converted at the irrevocably fixed conversion rate between the euro and the litas. The irrevocable conversion rate between the euro and the litas will be set in the European Union Council Regulation amending Regulation (EC) No 2866/98.

DUAL CIRCULATION PERIOD 28. From the euro adoption date, the euro will become the single legal tender, except for the defined dual circulation period of 15 calendar days, when payments in litas banknotes and coins will also be allowed. This duration of the dual circulation period has been proposed taking into consideration the technical capacity to frontload euros to banks and commercial enterprises and to collect the litas, the practice of the euro area countries in adopting the euro, and the experience of the Republic of Lithuania gained through the re-introduction of the litas. During the dual circulation period, the larger part of litas banknotes and coins will be exchanged into euro banknotes and coins or spent on goods or services.

EXCHANGE OF THE CURRENCY 30. When exchanging litas cash into euro cash, the irrevocably fixed conversion rate between the litas and the euro to be approved by the European Union Council will be applied. From the euro adoption date in the Republic of Lithuania, conversion of litas cash into euro cash and rounding will be carried out in accordance with the provisions of Regulation (EC) No 1103/97.

Dual Display of Prices 32. In order to ease the transition to the euro as a new measure of value it is recommended to start a voluntary dual display of prices at least six months before the euro adoption date, i.e. after the EU Council makes a decision on the irrevocably fixed conversion rate between the euro and the litas.

V. PRACTICAL PREPARATION Public Sector Redenomination of Securities 36. Taking into account the practice of the euro area countries, it has been decided to redenominate the nominal value of securities of the Government of the Republic of Lithuania (hereinafter referred to as “GS”) for the blocks of securities held by a particular investor and to set a new nominal value of GS at 1 euro cent per unit. The nominal value of all GS issued in litas will be redenominated by dividing the total nominal value of securities held in each individual account of the particular investor, according to each security issue identification code, by the irrevocably fixed conversion rate, multiplying it by 100 and rounding to the whole figure. The result obtained will represent the number of securities with the nominal value of one euro-cent, held by the given investor. This is a technically simple and transparent method: the redenomination will have the lowest impact on the value of securities; therefore, no additional payments to compensate for the differences that might be created by rounding will be required, in contrast with other methods.

Taxes 42. Amounts payable (receivable) and other amounts specified in tax returns for tax periods beginning as of the euro adoption date, as well as for those tax periods beginning before the euro adoption date and expiring after the euro adoption date, will be given in the euro.

Adaptation of Accounting 47. As of the euro adoption date, economic entities will keep records of their economic transactions and operations in the euro. Accounting documents will, as of the euro adoption date, be issued by indicating amounts in the euro.

Adjustment of Information Systems 50. By the euro adoption date, information systems will be adjusted to process data in the euro. It is recommended to make efforts to ensure that the adjustments do not affect the existing functionality of information systems.

Harmonisation of Statistics 60. The Department of Statistics under the Government of the Republic of Lithuania (hereinafter referred to as “the Department of Statistics”), the Bank of Lithuania, the Ministry of Finance of the Republic of Lithuania and other public authorities managing the official statistics will adjust the procedures for managing the statistics, develop measures for collecting statistical data, preparing and distributing statistical information, and other measures for the management of statistics. The work will be coordinated by the Department of Statistics. Preparations will be made for publishing statistical information in the euro after the euro adoption date. Historical time series in the litas will be converted to the euro.

The statistics harmonisation procedure will be approved by an Order of the Director General of the Department of Statistics.

Prepaid Items (Transport Tickets, Postage Stamps, etc.) 61. Tickets of passenger transportation by water, railway and road transport on long-distance, suburban and local routes, the nominal value of which is displayed in the litas, will be valid four months after the euro adoption date.

Air transport tickets, the nominal value of which is displayed in the litas, will be valid six months after the euro adoption date.

Input by Municipalities 64. Municipalities shall make preparations to ensure that the areas operated by them, especially public transport, function smoothly during the changeover. Enterprises founded by municipalities to provide public services are recommended to prepare action plans where special attention should be given to the activities carried out during the dual circulation period.

Bank of Lithuania Euro Banknotes and Coins 67. The Bank of Lithuania shall be responsible for timely acquisition of euro banknotes and coins. During the preparatory period, the Bank of Lithuania shall agree with the European Central Bank and the national central bank of that state which will supply the euro banknotes, on the legal and logistics aspects of the acquisition of euro banknotes. A euro banknotes borrowing agreement will be signed with the European Central Bank. Euro coins for the Republic of Lithuania are planned to be minted by the private limited company Lithuanian Mint (hereinafter referred to as “the Lithuanian Mint”). The Lithuanian Mint is prepared to mint Lithuanian euro coins and Lithuanian euro cents; however it will be able to start doing it only after the European Union Council adopts a decision on the euro adoption in the Republic of Lithuania.

Payment System 79. As of the euro adoption date, the payment system of the Bank of Lithuania will process credit and debit operations and other payments in the euro only.

Exchange Rates 80. As of the euro adoption date, the Bank of Lithuania will publish, in the Republic of Lithuania, the exchange rates between the euro and the main foreign currencies set by the European Central Bank. The exchange rates between the euro and other foreign currencies will be set and published by the Bank of Lithuania.

COMMERCIAL BANKS 81. Commercial banks as well as foreign banks operating in the territory of the Republic of Lithuania (herein referred to as “commercial banks”) shall be fully prepared and adequately adjust their information and other internal systems to be able to properly inform and serve their customers.

Exchange of the Litas 83. Commercial banks shall be prepared to meet the demand of legal and natural persons for euro banknotes and coins. As of the euro adoption date, commercial banks shall dispense only euro banknotes and coins and stop dispensing litas banknotes and coins.

Customer Accounts 85. On the euro adoption date, deposits and other amounts in the litas held in all customer accounts with credit institutions shall be converted into the euro free of charge, applying the irrevocably fixed conversion rate between the euro and the litas and complying with the conversion and other requirements established by the European Union legislation.

Interest Rates 86. As of the euro adoption date, every reference in legal acts, contracts and other documents to VILIBOR (Vilnius Interbank Offered Rate) shall be read as a reference to EURIBOR (Euro Interbank Offered Rate), except for interest rates on overnight loans. References to the overnight VILIBOR shall be read as references to eonia (Euro Overnight Index Average). Contracts may contain other provisions by agreement between the parties. Where a reference in contracts or other documents to VILIBOR refers to a period that starts before and ends after the euro adoption date, this expression of interest rates shall be used until the end of the period for which it has been calculated, unless the parties agree otherwise.

Automated Teller Machines (ATMs) 87. Commercial banks shall thoroughly adjust their ATM infrastructure to dispense euro banknotes and make sure that their ATMs are filled with euro banknotes as from the euro adoption date. Commercial banks shall ensure that the overall structure of denominations of euro banknotes in ATMs is dominated by low denominations.

Retail TRADE and services 88. Trade enterprises shall make preparations to be ready to work during the dual circulation period, i.e. to train their personnel accordingly.

During the dual circulation period, sellers of goods and providers of services shall accept payments either in the litas or the euro, but change should be preferably given in the euro only. Consumers will be encouraged to use more often payment cards and electronic payment methods.

92.1. to convert prices correctly;

92.2. not to use the euro adoption as a pretext to raise prices;

92.3. not to conclude agreements that restrict competition;

92.4. to respect the commitment to non-discrimination on the basis of currency;

92.5. to accept the litas and seek to give change only in the euro during the entire dual circulation period;

92.6. to arrange the dual display of prices in the customer-friendly manner, to refrain from big sell-outs, etc.

VI. Consumer PROTECTION 94. Dual display of prices will serve as an important safeguard in the favour of consumers against potential abuse and manipulation of prices.

101.1. business organisations will be encouraged to adopt the Code of Good Business Practice (Will), by which they will undertake a commitment to convert prices correctly and not to use the euro adoption as a pretext to raise prices and otherwise act against consumer interests;

101.2. the Department of Statistics will monitor changes in retail prices. During the period of the dual display of prices, prices in the litas and the euro will be recorded in accordance with the usual procedure, public authorities concerned and the public will be given statistical information on changes in prices of consumer goods and services by recording prices in the litas and the euro and assessing the impact of price conversion on the overall change in consumer prices. It will also prepare and disseminate information on retail prices of about 50 main uniform goods and services and on their price movements;

101.3. The National Consumer Rights Protection Council under the Ministry of Justice will investigate consumer complaints and establish violations of consumer rights;

101.4. The public will be constantly informed (via internet websites, in the press) about price monitoring results and cases of abuse.

VII. providing information to the public 102. The public shall be informed on the planned adoption of the euro in accordance with the Public Information Strategy aimed to adequately and comprehensively inform Lithuania’s society about the European Union single currency, the impact of its adoption on the national economy and the public, the preparedness of the Republic of Lithuania for the adoption of the euro and the planned procedure for the changeover. The Public Information Strategy also aims at creating conditions for the implementation, in a targeted and coordinated manner, of public information on the euro adoption and communication measures planned by the Government of the Republic of Lithuania, the Bank of Lithuania and other public authorities and institutions.

106.1. at the start of the information campaign, the public will be informed on the impact of the single currency on the national economy and the public, on the degree of fulfilment of legal and economic requirements (convergence criteria) by the Republic of Lithuania, and, in general terms, on the euro and the euro area. Information on these subjects will be published in various publications and on the websites of public authorities; this will involve cooperation with TV and radio broadcasters, distribution of publications, meetings of experts with different groups of the public and organisation of various training courses;

106.2. The European Union Council’s decision concerning the abrogation of the derogation and the adoption of the euro in the Republic of Lithuania will mark a start of the most intensive part of the campaign. At this stage, the public will be informed in detail on the euro adoption procedure, legislation of the European Union and the Republic of Lithuania on the euro adoption process, denominations and value of the single currency, security features of the euro, etc. The general public and individual target groups of the public will be informed through different information channels, such as TV, radio, press, outdoor posters; a special information package for all households; a toll-free Euro Hotline; special website; special publications for individual target groups; events, meetings and training courses;

106.3. The public shall be extensively informed on the adoption of the euro even after the changeover. By using the information channels mentioned in paragraph 106.2 of this Plan, it is envisaged to provide the public with comprehensive information about the progress and results of the changeover, further information about euro banknotes and coins and their security features, and to analyse other matters related to the adoption of the euro. –––––––––––––––– APPROVED by Resolution No 1050 of 29 September 2005 of the Government of the Republic of Lithuania (as amended by Resolution No 417 of 25 April 2007 of the Government of the Republic of Lithuania) lithuania’s Public Information and Communication Strategy for the adoption of the euro I. GENERAL PROVISIONS 1. Lithuania’s Public Information and Communication Strategy for the Adoption of the Euro is a medium-term strategic planning document, the objective of which is to provide relevant and comprehensive information to the public of Lithuania about the single currency of the European Union and its impact on the national economy and the public, the preparedness of the Republic of Lithuania for the adoption of the euro and the planned euro changeover procedure; it is also aimed at creating conditions for the implementation, in a targeted and coordinated manner, of public information on the euro adoption and communication measures planned by the Government of the Republic of Lithuania, the Bank of Lithuania and other public authorities and institutions (hereinafter referred to as the institutions concerned).

II. Current situation Providing INFORMATION ON THE EURO to the public 4. Implementing the original Strategy, the institutions concerned have prepared, published and disseminated to the public a number of publications on the single currency of the European Union, the euro. Seminars and other events were organised and lectures were given to employees of educational establishments, businessmen, bank cashiers, public officers, consumers and other target groups in various places of the country. Meetings with local communities were held in various regions of the country, where representatives of the institutions concerned discussed issues of concern to the public and answered questions about the planned adoption of the euro in Lithuania.

Public Opinion 6. On 4 to 8 September 2006, the international public opinion and market research company the Gallup Organization, commissioned by the European Commission, conducted a Eurobarometer survey, during which over 10 thousand people aged 15 years and above from the new European Union Member States were interviewed. Commissioned by the Bank of Lithuania, the Public Opinion and Market Research Centre, private limited liability company Vilmorus (hereinafter referred to as Vilmorus), conduced a survey in Lithuania (1009 Lithuanians aged 15 years and above from 20 cities and 68 villages were interviewed on 1 to 4 December 2006). The survey results showed that Lithuanians were increasingly better informed about the euro. According to the Eurobarometer survey results, the rate of Lithuanian population adequately informed about the euro adoption process was 31 percent in September 2005 and 40 percent in September 2006 (the average in the new European Union Member States is 40 percent). The Vilmorus survey showed that 44.4 percent of Lithuanians were adequately informed about the process and progress of the adoption of the euro. The Eurobarometer survey also showed that 43 percent of the population believed that the euro would have a positive impact on the national economy (in 2005, this figure was only 32 percent). A slight decline in the number of those negatively disposed towards the euro, from 59 percent in 2005 to 56 percent in 2006, was recorded.

8.1. The most readily appreciated advantages of the adoption of the euro for Lithuanians were the following: no need to change currency while travelling within the European Union (this seemed important to 71.6 percent of the respondents); Lithuania will become a full-fledged member of the European Union (68.1 percent of those interviewed); the euro will facilitate payments between businessmen and their foreign partners (74.2 percent of the interviewed). Less weight was given to the fact that the euro is a reliable and stable currency (59.7 percent of the interviewed) and it will be easier to compare prices across the European Union Member States (62.9 percent of the respondents).

8.2. People very clearly see the biggest concerns related to the adoption of the euro: as much as 91.8 percent of the respondents are concerned about a potential rise in prices, 83.4 percent worry that their savings will depreciate and 69.4 percent are concerned about the loss of national currency in general. Generally, the concerns remain the same as those indicated in the earlier surveys commissioned by the Bank of Lithuania and in the regular Eurobarometer surveys carried out throughout the European Union.

8.3. Lithuanians were quite unanimous in their evaluation of information sources. They would most strongly trust such sources of information regarding the euro as: family members, relatives and acquaintances living in the Members States of the euro area (67.5 percent of the respondents); people from the countries which have recently adopted the euro (63.9 percent); economists (60.1 percent) and the Bank of Lithuania (58.7 percent of those interviewed). The least trustworthy sources were representatives of non-governmental organizations (12.3 percent), members of the Parliament (15.4 percent) and business representatives (16.4 percent of the interviewed). Surprisingly, the press gathered only a scant 26.1 percent.

8.4. Respondents rated the information about the euro in terms of its importance as follows: the most important information is about potential consequences of the euro adoption (88.1 percent), the practical information of the euro changeover (86.2 percent) and consequences of the euro adoption in other countries (71.2 percent).

8.5. The population were unanimous in their evaluation of information media and information channels: as much as 91.6 percent responded that they needed to be informed via television, 79.4 percent believed that information should come via radio, 78.4 percent would like to obtain information through the national press and 65.1 percent through the regional press. People were least interested in the information provided by libraries (22.8 percent).

9.1. Businesses were more positively-inclined towards the euro: 54.3 percent of the respondents were in favour of the single currency; on the other hand, 47.1 percent also welcomed the fact that Lithuania would fail to adopt the euro in 2007. Nevertheless, 32 percent of the respondents said they would like the euro to be introduced as soon as possible; together with those who wanted this to happen in 2009 or 2010, they made up more than 60 percent of the total number of the interviewed.

9.2. Businessmen believed that the adoption of the euro would allow Lithuania to become a truly full-fledged EU Member State. This factor was of concern to as much as 68 percent of the businessmen and was much more important than other factors related to the benefits of the euro adoption. In the context of the whole national economy rather than personal business, this factor was given even more importance: 75.4 percent of the respondents indicated this aspect as important.

9.3. Assessing the disadvantages of the euro adoption, businessmen (only 32.3 percent) indicated, inter alia, a possible rise in prices.

9.4. Most businessmen (as much as 79.5 percent) thought they should participate in the process of the adoption of the euro; of these, 44.4 percent indicated they should participate via business associations. 37 percent of the respondents knew about the Code of Good Business Practice underway for signature and only 27 percent believed that it might prevent price increase.

9.5. According to businessmen, the most trusted sources of information were: economists (70.5 percent of the respondents trusted them), people from the countries which have recently adopted the euro (68.5 percent), the Bank of Lithuania (67.2 percent of the respondents), and business associations (63.5 percent). The least trusted sources were members of the Parliament of the Republic of Lithuania (15.9 percent), emigrants (18.1 percent) and journalists (24.3 percent of those interviewed).

9.6. At present, it is most important for businessmen to get information on possible consequences of the adoption of the euro (84.6 percent of the respondents), Lithuania’s preparedness (75.9 percent) and the adoption of the euro in other countries (72.5 percent of the interviewed). One year before the adoption of the euro, the most important information for them would be information about potential consequences of the adoption of the euro to business (92.6 percent) and the changeover process(92.3 percent of the respondents).

9.7. Businessmen ranked information media differently than the general public: 88.8 percent of the respondents would prefer to get information via the Internet, 84.9% – by the national press and 83.1 percent – by television.

10.1. After 5 years from the introduction of the euro, the euro was positively evaluated by 48 percent of the population of the euro area Member States. 38 percent considered that the euro created more problems than it gave benefits. 7 percent believed that the new currency changed nothing and 7 percent did not have any opinion on the issue.

10.2. The euro was positively evaluated by as much as 75 percent of the population in Ireland, 65 percent in Finland and 64 per cent in Luxembourg. The lowest percentage (38 percent) of those evaluating the euro positively was in Greece and the Netherlands. The least positive opinion about the euro was recorded in those states where the adoption of the euro coincided with the deceleration of economic growth.

10.3. As much as 81.4 percent of the respondents stated that prices had gone up after the adoption of the euro. Compared to the concern about a rise in prices, other negative changes seemed insignificant. 18.5 percent of the respondents believed that the euro aggravated their everyday life, 7 percent thought that it slowed down the growth of the national economy and increased the rate of unemployment, and 5 percent noted that it undermined the national sovereignty.

III. Organization of Activities Institutional Framework 11. To ensure proper preparation of Lithuania for the adoption of the euro, the Government of the Republic of Lithuania has set up, by Resolution No. 592 of 30 May 2005, a Commission for the Coordination of the Adoption of the Euro in the Republic of Lithuania (hereinafter referred to as “the Commission”). The Commission is composed of the Prime Minister of the Republic of Lithuania (Chairperson of the Commission), Minister of Finance (Deputy Chairperson of the Commission) and the Chairperson of the Board of the Bank of Lithuania (Deputy Chairperson of the Commission), Minister of Social Security and Labour, Minister of the Economy, Minister of Foreign Affairs, Minister of Justice, Minister of Agriculture, and General Director of the Department of Statistics under the Government of the Republic of Lithuania (hereinafter referred to as the Department of Statistics).

The Commission’s objective is to ensure proper preparation for the adoption of the euro in the Republic of Lithuania. Seven working groups have been set up to deal with specific issues and submit conclusions to the Commission; these are the Coordination Working Group, the Public Information Working Group, the Cash Working Group, the Business Environment Working Group, the Consumer Rights Protection and Social Affairs Working Group, the Legal Issues Working Group, and the Information Technologies Working Group (Decree No. 204 of 12 August 2005 and Decree No. 318 of 23 December 2005 of the Prime Minister of the Republic of Lithuania).

Cooperation with the EUROPEAN COMMISSION and the EUROPEAN CENTRAL BANK 13. The Ministry of Finance and the Bank of Lithuania take part in the meetings of managers of communication units of finance ministries and central banks of the European Union Member States, organised by the DG Economic and Financial Affairs of the European Commission to discuss issues related to the provision of information on the adoption of the euro to the public. The European Commission has also budgeted funds and offered different forms of cooperation for the implementation of various communication measures (under the Partnership Agreement between the Republic of Lithuania and the European Commission for the organisation of information and communication campaigns on the changeover to the euro in Lithuania in the framework of the information and communication strategy on the euro and Economic and Monetary Union, signed on 8 November 2005 (Valstybės žinios (Official Gazette) No 6-195, 2006) (hereinafter referred to as the Partnership Agreement), also under the Twinning Programme).

IV. Objectives 17. The following objectives are raised in this Strategy:

17.1. To inform the public about the adoption of the euro and related factors. Acting within their competence, the institutions concerned shall supply information to the public on all aspects of the adoption of the euro: impact of the euro adoption on the Lithuanian economy, principles of conversion in private and corporate bank accounts, balance-sheets and social benefits to the euro, denominations of euro banknotes and coins, banknote security features, currency exchange facilities.

17.2. To help the public to prepare for the adoption of the euro. While providing information to the public, institutions concerned shall create conditions for proper and timely preparation of the public for the adoption of the euro.

17.3. To contribute to a smooth adoption of the euro in Lithuania. The institutions concerned shall seek to ensure that the well-informed and euro adoption supporting public contributes to a smooth introduction of the euro; to form an attitude that only concerted action of all institutions concerned, active participation of the whole society and benevolent support of business enterprises will ensure a smooth adoption of the euro in Lithuania.

17.4. To form a positive approach of the public towards the future currency of Lithuania – the euro. The institutions concerned shall take care to prevent concerns of the well-informed society about the adoption of the single currency of the European Union, ensure understanding of the benefits of the euro adoption in Lithuania and seek public support and positive attitude towards the single currency of the European Union during the adoption of the euro in Lithuania and afterwards.

V. Key PRINCIPLes of PUBLIC Information and Communication 18. The main principle for the implementation of this Strategy is the linking of the process of the adoption of the euro with the integration to the European Union in general. Investigations suggest that target groups of the public do not link the adoption of the euro with the integration to the European Union. Information should aim at linking these processes and explain that the euro means closer integration to the European Union. Moreover, as surveys reveal, the public is concerned not about the euro itself, but about its too fast adoption and possible associated negative processes. Therefore, in providing information to target groups of the public the discussion in principle about the need to adopt the euro should not be returned to.

It is sufficient to intimate that the adoption of the euro has already been provided for in Lithuania’s Accession Treaty and that it is a question of time, not principle. The adoption of the euro was postponed not because of doubts about benefits of the euro, but because of objective criteria which Lithuania did not meet at the time of assessment – May 2006. The connection of the ideas of the accession to the euro area and integration to the European Union aims at securing support of that part of the public which sees membership in the European Union as a positive development (around 70 percent). This idea should be reflected in visual materials, symbol and slogan(-s) used in the euro-related information-spreading activities.

They will help target groups to catch more easily information on the adoption of the euro in the overall flow of information and identify it as a part of the euro information campaign. The general idea of the European Union should be followed in providing information to all target groups.

19.1. Involvement of social groups in the process of the adoption of the euro. This principle shall be applied with the aim of ensuring a more transparent and efficient utilisation of capabilities of individual social groups to participate in the process of practical dissemination of information and to perform control and supervision functions immediately after the adoption of the euro. Political organisations, non-governmental organisations and business associations could become especially important information partners of the institutions concerned. This principle would not only help to maintain more efficient feedback relations with target groups of the public, but would also help to promote the idea that adoption of the euro, like integration into the European Union, is a common concern to all citizens.

19.2. Raising economic literacy. Understanding of the main principles of the functioning of the economy would allow the public and target groups to perceive better the necessity of the adoption of the euro, to get rid of unreasonable fears related to the adoption of the euro and to make indirect benefits of the adoption of the euro visible. It is no less important for the public to know and understand that, in order to adopt the euro, it is necessary to comply with the financial stability criteria that also determine economic stability of the country. With the adoption of the euro, a country acquires more capabilities to maintain economic and financial stability. Dissemination of information on the Economic and Monetary Union would also contribute to this goal.

21.1. Openness and transparency. The institutions concerned shall be open, accessible to everyone interested in the adoption of the euro, and always ready to answer, within their competence, any questions related to the adoption of the euro and to provide all possible information;

21.2. Feedback. The institutions concerned shall not only provide information to the public, but also carefully analyse and assess how this information is perceived by the public, and receive its feedback;

21.3. Unanimity. The institutions concerned shall consider properly, co-ordinate among themselves and aim to provide the public with uniform and coordinated information both at the level of managers and experts communicating with the public;

21.4. Quality of information. Information provided by the institutions concerned shall be timely, clear and easily understandable and tailored to each target group.

Public information and communication measures are listed in the Annex to this Strategy.

VI. INFORMATION Categories 31. Given the wide range of information provided to the public and the variety of information (hot news highlights) and planning their effective presentation in due time and to a required addressee, several information categories shall be distinguished:

31.1. Promotion of economic literacy: information that helps the public to understand basic economic processes and their regularities and that creates an information base to grasp the meaning of the adoption of the euro;

31.2. Analysis of economic processes: information showing that certain fears of the public are not related to the adoption of the euro, since they depend on other economic processes;

31.3. Preparation for the adoption of the euro: information promoting interest in the adoption of the euro and other factors associated with the preparation for the euro adoption;

31.4. Consequences (results) of the adoption of the euro in Lithuania: information developing a favourable public opinion on the adoption of the euro;

31.5. Practical aspects of the adoption of the euro: information related to different aspects of the adoption of the euro, such as the value of goods and services in the euro, schedule of the national currency (cash and non-cash) changeover to the euro, denominations of euro banknotes and coins, euro banknote security features, etc.;

31.6. Experience of foreign states during and after the adoption of the euro.

VII. Target Groups 32. The main target of this Strategy is the whole population of Lithuania. However, taking into consideration the nature of activity, distinctive information needs and the accessibility of information dissemination channels, the following main target groups are distinguished:

32.1. The general public: the entire population of Lithuania who use currency and will be directly confronted with the changeover;

32.2. The media: Lithuanian national and regional media, foreign press, radio, television and the Internet;

32.3. Businessmen: trade and services sectors;

32.4. Public authorities and public servants: not directly related to the adoption of the euro but able to disseminate information prepared by the institutions, through their communication channels;

32.5. Retired persons and persons eligible to social support: mostly unemployed population;

32.6. The youth: young people, mostly schoolchildren and students;

32.7. The disabled: people with hearing, visual or other disabilities;

32.8. Ethnic minorities: representatives of ethnic minorities permanently residing in Lithuania;

32.9. People living in remote or single-house settlements;

32.10. Foreign nationals: residents of those states, from which the largest number of businessmen and tourists come to Lithuania, and residents of the neighbouring states;

32.11. Lithuanian citizens living in other states.

VIII. Information disseminators 33. Implementing this Strategy and trying to inform the public in a more comprehensive manner, the institutions concerned shall cooperate with other institutions and organisations as well. The main disseminators of information on the adoption of the euro prepared by the institutions concerned are the following:

33.1. Other state and municipal institutions: institutions not directly related to the adoption of the euro but capable of disseminating information prepared by the institutions concerned, through their communication channels, such as municipalities (through their public relations divisions), wards, social care and other institutions;

33.2. The media: national, regional, specialised (including the media in foreign languages), the main public opinion developers trusted by the public most of all; the media established by nationals of the Republic of Lithuania living abroad, operating in the euro area states;

33.3. Commercial banks: important disseminators of information to bank clients (depositors, borrowers, people exchanging the litas into the euro, etc.);

33.4 Education establishments: the main source of information for the youth;

33.5. Shopping centres and other trade and service centres: important public gathering places, where most people will encounter the new currency for the first time;

33.6. Large enterprises: potential sources of information on the adoption of the euro for their employees;

33.7. Business associations, consumer organisations and other non-governmental organisations uniting various interest groups, specialised information centres – important intermediaries in providing information to target groups and implementing specific information provision projects;

33.8. Libraries: Martynas Mažvydas National Library of Lithuania, regional and municipal public libraries, libraries of science and studies institutions, school libraries (excluding higher educational institutions), special and other libraries – potential sources of euro adoption-related information for their readers;

33.9. Travel agencies and hotels: one of the most important sources of information for foreigners visiting Lithuania;

33.10. Police: a potential source of information on the use of euro banknotes and coins for Lithuanians and foreign visitors;

33.11. Public opinion leaders: politicians, businessmen, education and science workers, art and show business representatives active in the social life;

33.12. Political parties;

33.13. Post offices: institutions with a wide network providing postal and other services to the population.

IX. Stages of Implementation of the strategy 34. This Strategy will be implemented in three stages:

34.1. Stage One: the period of preparation that started in September 2005, when this Strategy was adopted, and will continue until the Council of the European Union makes a decision on the abrogation of the derogation regarding the temporary use of the national currency in the Republic of Lithuania and the adoption of the euro in the Republic of Lithuania. This stage will cover the provision of information related to the adoption of the euro, highlighting of the importance of the preparation period, introduction of symbols and the slogan(-s) of the public information campaign, preparatory work for the intensive information campaign. The institutions concerned will hold discussions with businessmen, non-governmental organisations and communities in order to analyse their needs and concerns and to communicate relevant information on the euro area, its impact on the economy of Lithuania and possible indirect benefits both to the overall national economy and to an individual person.

During this period, it is very important to keep regular contacts with the media and to start, through those information provision channels that are most trusted by the target audiences, a series of educational articles and broadcasts on macroeconomic processes and their impact on the life of each citizen and to show the results of the adoption of the euro in the new Member States of the European Union. These will be communicated to the media and the public of Lithuania. Particular attention is envisaged to the provision of information about the participation in the Exchange Rate Mechanism II, compliance with the Maastricht criteria, the European Central Bank and European Commission Convergence Reports and the decision of the Council of the European Union on Lithuania’s readiness for the adoption of the euro.

At this stage, information provision activities will be intensified once Lithuania applies for membership in the euro area.

34.2. Stage Two: the period of preparation for the changeover, starting from the date when the Council of the European Union makes a decision on the abrogation of the derogation regarding the temporary use of the national currency in the Republic of Lithuania and the adoption of the euro in the Republic of Lithuania and finishing on the date of the adoption of the euro. This will be the most intensive stage of the information campaign. The link between the euro and the idea of the European Union in general will be promoted with more effort than ever before and with more focus on emotional aspects, by means of public relations and advertising. The benefit of the adoption of the euro will be emphasized. Actions at this stage will include events dedicated to the euro, communication of the changeover plan, and still more intensive live discussions with public groups in order to involve their representatives into the process of the adoption of the euro as potential assistants in monitoring and controlling price conversion and display procedures. Agreements to be concluded with business organisations will be made public.

34.3 Stage Three: the period starting on the day of the adoption of the euro and lasting six months after the adoption of the euro. The public will be informed about price monitoring results and given other information related to the adoption of the euro; public opinion polls will be conducted in order to analyse the approach of target groups towards the new currency and euro adoption-related processes.

X. Monitoring and Assessment of Effectiveness 35. Effectiveness of the public information activity will greatly depend on the decisions of the institutions concerned related to the changeover procedure, as well as on the image of the euro in the euro area and in the European Union Member States outside the euro area.

Annex to the Lithuania’s Public Information and Communication Strategy for the Adoption of the Euro PUBLIC Information and Communication measures No.

Measures Description Target groups Stage of implemen-tation Institutions concerned N.B.

1.

Public opinion polls Periodic public and business opinion polls in order to find out their attitude towards the adoption of the euro in Lithuania and reasons behind the opinions, to identify public information needs and to evaluate the efficiency of public information and communication measures provided for in this Strategy.

I, II, III Bank of Lithuania In addition to surveys commissioned by the Bank of Lithuania, public opinion polls commissioned by the European Commission and the European Union institutions will be examined.

2.

Media monitoring Regular monitoring of the Lithuanian and foreign (if possible) media, analysis of the information provided and the issues discussed in the media in relation to the adoption of the euro, identification of the needs for information on the adoption of the euro.

I, II, III Ministry of Finance, all other institutions concerned within their competence Commissioned by the Ministry of Finance, daily material on the Lithuanian media monitoring in relation to the adoption of the euro will be prepared and distributed to other institutions concerned.

3.

Preparation of FAQ and answers on the adoption of the euro Regular preparation of FAQ, which the institutions concerned will exchange and regularly update.

Various target groups I, II, III All institutions concerned within their competence 4.

Developing symbols for the euro information campaign To help the public to catch the relevant information in the overall flow of information provided through all communication channels and by different institutions and to identify it as a part of the euro information campaign, symbols and a slogan (slogans) for the information campaign will be developed.

General public I Bank of Lithuania 5.

Provision of information on the adoption of the euro to the media Regular provision of information to the media (Lithuanian national and regional, foreign and specialised) on various issues related to the adoption of the euro in Lithuania: public opinion, legal acts adopted or underway, decisions of the institutions concerned, compliance with the Maastricht criteria, timing of the adoption of the euro, currency exchange facilities, etc. Information will be provided through notices, interviews of the managers and experts of the institutions concerned, press conferences, presentations, websites and visits of media representatives to the euro area states.

The media I, II, III All institutions concerned within their competence 6.

Provision of information on the adoption of the euro directly to target groups, preparation of answers to inquiries Educational seminars, lectures about the adoption of the euro for the media, businesses, non-governmental organisations, public servants, cashiers and other target groups; regular processing of inquiries received by the institutions concerned and preparation of answers to the inquiries on the issues of the adoption of the euro; answers by post, e-mail, telephone, etc.

The media, public authorities and their staff, businessmen, elderly population, the disabled, the youth, foreign nationals, other specific target groups I, II, III All institutions concerned within their competence 7.

Publications:

7.1.

Publication about the euro Comprehensive annual publication with latest information on the adoption of the euro in Lithuania (in the Lithuanian, Russian, Polish and English languages) General public I, II To be prepared and distributed by the Bank of Lithuania and, if necessary, other institutions concerned Distributed directly through mail boxes, with press publications, through information disseminators, directly to target groups 7.2.

Publications of the European Central Bank and the European Commission Publications of the European Central Bank and the European Union institutions about the euro and the Economic and Monetary Union in the Lithuanian language General public I, II, III To be prepared and printed by the European Central Bank and the European Commission, distributed by the Bank of Lithuania and, if necessary, other institutions concerned Distributed directly through mail boxes, with press publications, through information disseminators, directly to target groups.

7.3.

Publications for target groups Publication of booklets, posters, information sheets for target groups (children, national minorities, elderly population); relevant latest information on the euro adoption and the euro area news Various target groups II To be prepared, printed and distributed by all institutions concerned within their competence Distributed directly through mail boxes, with press publications, through information disseminators, directly to target groups.

8.

Development of a general website www.euro.lt for the presentation of the adoption of the euro and for the latest information on the euro adoption process and the membership in the European Union Development and regular updating of the website presenting all information related to the adoption of the euro prepared by the institutions concerned. The website’s section on the adoption of the euro will be uploaded by the institutions concerned with the news, legal acts, decisions, graphical representations of the euro banknotes and coins, their security features, currency exchange timetables, the calculator, the FAQ, etc. This website will contain links from all institutions concerned, as well as links to other websites with useful information on the euro.

General public, the media, businessmen, public authorities and their staff, the youth, foreign nationals, other target groups.

I, II, III Bank of Lithuania, the Office of the Government of the Republic of Lithuania, other institutions concerned.

The Office of the Government of the Republic of Lithuania acting as the administrator of the website is responsible for developing the website content management system and for posting the general symbols of the information campaign on the website. The Bank of Lithuania is responsible for the content of information about the euro and its updates.

9.

Provision of information on the adoption of the euro on the websites of the institutions concerned The institutions concerned will present on their websites the main information on the euro adoption in Lithuania, related decisions and legal acts of the institutions, etc.

General public, the media, businessmen, public authorities and their staff, the youth, foreign nationals, other target groups.

I, II, III All institutions concerned The institutions concerned will be given the right to post on their websites uniform design links to the section of the website www.euro.lt with comprehensive information on the adoption of the euro, euro banknotes and coins and their security features.

10.

Preparation of information for the blind and the visually impaired Information in Braille and/or audio information about the euro adoption The disabled II Bank of Lithuania 11.

Setting-up of euro stands Setting-up of the European Commission information stands with illustrated information about the Economic and Monetary Union, at educational establishments and institutions concerned General public, public authorities and their staff, the youth II Bank of Lithuania To be coordinated by the Bank of Lithuania 12.

Organisation of the conference “Lithuania’s Path Towards the Euro” (preliminary title) Organisation of an international conference dedicated to the review of Lithuania’s preparedness for the adoption of the euro and the impact of the adoption of the euro on the economy General public, the media, businessmen, public authorities and their staff, the youth, foreign nationals I, II Bank of Lithuania 13. “Europhone” (800-line) Free telephone hotline (800-line), “Europhone”, providing all relevant information prepared by the institutions concerned, related to the adoption of the euro.

General public II, III Bank of Lithuania 14.

Advertising Information through the press, television, radio, outdoor and internet advertising, on euro banknotes and coins and their security features, currency exchange facilities, etc.

General public II, III Bank of Lithuania 15.

Organisation of “Eurobus” visits A van or another vehicle decorated with special euro symbols, visiting towns and regional centres of Lithuania (at the main gathering places) and distributing publications on the adoption of the euro, souvenirs, etc.

General public II Bank of Lithuania 16.

Production of euro souvenirs Production of souvenirs (ties, office supplies, etc.) decorated with euro symbols.

General public I, II, III Bank of Lithuania Souvenirs will be distributed by information disseminators directly to target groups.

17.

Internal communication Latest information on the adoption of the euro for the staff of the institutions concerned, to be provided through internal communication channels (internal publications of the institutions, the Intranet, etc.).

Public authorities and their staff I, II, III All institutions concerned