This document is an excerpt from the EUR-Lex website
Transition to the euro: banking charges for conversion, dual display of prices
In 1998, before euro notes and coins were put into circulation in 12 Member States of the European Union, the European Commission adopted these Recommendations in order to facilitate the introduction of the single currency. The Recommendations are addressed to banks and other economic agents, trade associations and consumer organisations, and the Member States.
ACTS
Commission Recommendations of 23 April 1998 on:
1. banking charges for conversion to the euro [Recommendation 98/286/EC - Official Journal L 130, 1.5.1998];
2. dual display of prices and other monetary amounts [Recommendation 98/287/EC - Official Journal L 130, 1.5.1998];
3. dialogue, monitoring and information to facilitate the transition to the euro
[Recommendation 98/288/EC - Official Journal L 130, 1.5.1998].
SUMMARY
On 23 April 1998 the European Commission adopted these Recommendations, which are not legally binding, in order to ensure that the euro would be introduced under optimum conditions. Two of the Recommendations are aimed respectively at banks as regards banking charges for conversion and at economic agents as regards dual display of prices and other monetary amounts. The third act presents recommendations on dialogue, monitoring and information, particularly among professionals and consumer organisations, in order to facilitate the transition to the euro for citizens.
BANKING CHARGES FOR CONVERSION TO THE EURO
According to Recommendation 98/286/EC, the Commission considers that banks are not legally entitled to charge:
The Commission recommends that banks implement the following practices:
The Recommendation presents these two groups of points together under the heading "Standard of good practice", setting out both what the Commission regards as legally required and what it recommends.
Show conversion rates and other charges clearly
For all conversions (and exchanges) banks should show clearly the conversion rates applied and set out separately any other charges made.
Where banks make conversion or exchange charges which are not in line with the standard of good practice, or where they do not apply one or more of the above provisions, they should provide their customers with:
Banks should inform their customers as soon as possible before 1 January 1999 about whether and to what extent they intend to implement the standard of good practice.
The question of Commission monitoring of the implementation of the standard of good practice is dealt with in the recommendation on dialogue, monitoring and information to facilitate the transition to the euro.
The Commission calls on the relevant authorities in the Member States to consider how to facilitate the exchange of notes and coins for citizens who do not have a bank account.
The Recommendation is addressed to the Member States and to banks and their associations.
DUAL DISPLAY OF PRICES AND OTHER MONETARY AMOUNTS
"Dual display" of a price or other monetary amount means the simultaneous display of an amount in national currency and in euro. Dual display is part of an overall communication strategy to facilitate the switchover to the euro for consumers and employees.
Where dual display of prices or other monetary amounts is provided, the following provisions must be complied with pursuant to existing legislation:
The Commission stresses that the basic provisions should also be adhered to:
The Commission recommends that dual display should start at the beginning of the transitional period for documents such as bank statements and bills from utility companies, which can serve as benchmarks.
The introduction of dual display in the retail sector should be gradual, depending on how fast customers wish to make the changeover, the nature of the retail outlet and the types of product being sold.
The Commission encourages trade associations to devise common formats or designs for dual display. They are also invited to provide small retailers with assistance in developing dual display capabilities and other communication activities.
The Recommendation is addressed to the Member States and to all economic agents likely to use dual display.
DIALOGUE, MONITORING AND INFORMATION TO FACILITATE THE TRANSITION
The national authorities are invited to encourage all the players involved in the practical preparations for the changeover to the euro to keep up their dialogue. The Commission will also continue to encourage such dialogue at European level and will invite the Member States to take account of the results.
The Commission recommends in particular that:
Regarding the monitoring of practical preparations, the Member States are invited to establish decentralised observatories which could also serve as information sources for consumers and help to facilitate the exchange of information and good practices concerning consumer needs and the implementation of agreements at national and European level.
Concerning the provision of information, the Commission:
The Recommendation is addressed to the Member States, local authorities, trade organisations, consumer associations, banking associations, businesses and all other organisations or institutions in contact with them.
Key terms used in the act
Last updated: 12.07.2006