Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions and the European Bank.Third report on the practical preparations for the future enlargement of the euro area.

Abstract

The euro area currently consists of twelve EU Member States. A Member State's entry into the euro area is conditional upon the Member State meeting the "Maastricht" convergence criteria laid down in the Treaty. The degree to which the different countries have met the formal requirements allowing them to adopt the euro are evaluated by the Commission and the European Central Bank in their regular Convergence Reports.1 While Denmark and the United Kingdom have a special “opt-out” status, the remaining eleven countries are “Member States with a derogation”2 which are expected to adopt the euro once the necessary conditions are fulfilled. In addition to fulfilling the entry criteria, the introduction of the euro requires careful planning and extensive practical preparations, in which the public and the private sector as well as the public at large need to participate. The Commission has committed itself to report on a regular basis, and at least once a year or whenever justified by specific developments, on the state of these preparations. The reports on the practical preparations are not linked to the convergence reports. The first and the second report on the practical preparations for the future enlargement of the euro area3 were adopted in November 2004 and 2005, respectively. In view of the likely enlargement of the euro area with Slovenia on 1 January 2007, the present report is issued at an earlier stage and pays special attention to the ongoing preparations in this Member State. More generally, the report focuses on the state of ongoing practical preparations at the national level. The preparations at Community level are summarised in Annex 1