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.Fifth report on the practical preparations for the future enlargement of the euro area.

Abstract

Since the adoption of the euro by Slovenia on 1 January 2007, the euro area consists of thirteen EU Member States. Among the remaining fourteen EU Member States, twelve are "Member States with a derogation" which are expected to adopt the euro once the necessary conditions are fulfilled, while Denmark and the United Kingdom are not obliged to introduce the euro. In addition to meeting the "Maastricht" convergence criteria,1 the introduction of the euro requires Member States to undertake extensive practical preparations, which involve all sectors of the countries' economies, the public sector as well as the public at large. Slovenia's successful euro changeover confirms the experience of the first-wave euro-area countries that timely and comprehensive practical preparations are crucial for a smooth changeover and its positive perception by the public.2The present Report assesses the state of practical preparations for the future enlargement of the euro area.3 It focuses on the recent developments in Cyprus and Malta, as these countries will enter the euro area on 1 January 2008, following the Council's decisions that they fulfil the necessary conditions for the adoption of the euro. Furthermore, the report gives special attention to the preparations in Slovakia which aspires to adopt the euro on 1 January 2009.