The Irish Government is one of the best-prepared administrations in the European Union for monetary union, scheduled to start on January 1st, 1999. Before summer the previous Minister for Finance, Mr Quinn, published a national changeover plan for the introduction in Ireland of the new single currency, the euro. Ireland is one of six countries in the EU which has published such a document. The plan sets out a framework for the implementation of the euro by Government departments, the Revenue Commissioners, the Central Bank, the National Treasury Management Agency, the Irish Stock Exchange as well as banks and building societies.
In addition, the national information programme was launched in December last year. It is designed to provide information to the public on monetary union and the changeover to the euro. The first phase of the programme runs until the end of this year and consists mainly of the Forfas business awareness campaign.
The as Business Awareness campaign includes representatives from business and trade associations, from professional bodies and from the State agencies that deal directly with businesses.
The changeover plan itself includes a detailed timetable and a large number of commitments on how various agencies would deal with the single currency. From the beginning of monetary union all Government departments would accept payments in euros as well as in pounds.
In addition all financial and economic publications from the Department of Finance would provide summary information in euros. This includes the Budget, the estimates, the economic review and outlook as well as finance accounts and Exchequer returns.
All Central Bank operations in the wholesale money and foreign exchange markets will be denominated in euros.
Importantly for most businesses the Revenue will accept tax payments in euro as well as in pounds. It will also accept company returns and declarations in euro as well as for self-assessed income tax.
Companies which are up to speed will also be able to file their accounts with the companies registration office in euro.
Banks and building societies will also be obliged to process lodgements and payments in ether currency regardless of which the actual account is denominated in. They are also under an obligation to provide any service available in Ireland in euros.
Some areas will move even more quickly. The bond and equity markets are due to be transferred to the euro only at the start date in 1999.
The Irish Government will also stop raising money in pounds and all Irish Government bonds, bills and notes which would otherwise have been denominated in pounds and other currencies which are being replaced by the euro will be denominated in euros. In addition all outstanding Irish Government personal savings products will be accepted in the euro as well as in pounds. This will mean that An Post savings products will be available in the new single currency.
Irish equities will be quoted, traded and settled on the stock exchange in euros only. While all bonds and equity information published by the stock exchange on all matters will be published in euros. This means that deal prices, money raised, turnover and other information will no longer be available in Irish pound terms.
The Government has set plans in motion for a currency changeover board looked after by the Department of Finance to oversee the detailed implementation of the changeover, including areas of public and consumer information.
The plan will be extended before the end of this year to include other parts of the public sector. The authorities are hoping that this work will act as a catalyst for business to prepare for the changeover.
