Euro adoption plan unveiled

The route map was drawn up by the National Euro Coordination Committee, established last Sep, to epitomize practical tasks in connection with the country’s euro adoption. The first version of the plan will be updated annually until the introduction of the currency (the date of which hasn’t yet been set by the government).The NÁT was worked out because beyond the Maastricht requirements (which generally refer to the macro-economic figures of Hungary), euro adoption makes numerous other changes necessary. For example, the accounting systems of all Hungarian companies will have to be updated, and banks and financial institutes will have to transfer all their clients’ deposits and loans from forints to euro-based assets to comply with the requirements of the Maastricht-zone.
Although Hungary doesn’t have a target date set yet, preparation may well start, according to economy experts (and, indeed, the NÁT). Practical tasks of the switch-over are very subtle and excessively time-consuming.
The newly introduced plan identifies the most important elements of euro adoption.

Dual-price labelling

It makes clear that the switch from the forint to the euro for bank accounts will happen together with the switch in cash use.
The plan states that mandatory dual price labelling will begin as soon as the conversion rate is set, and will last at least six months after the adoption. It also states that forint bills will stay in use for one month after the introduction of the euro, and the Central Bank will continue to convert forint bills to euros for 20 years after the adoption.
Contracts will not have to be overhauled and revised, because a legal continuity will be granted for forint-based contracts after the adoption.
The plan also talks in details about the necessary changes in the Hungarian legal system.
Members of the National Euro Coordination Committee expect to have a broad-based social debate on the subject, with civic and professional organizations, throughout the fall.