BRUSSELS - The European Commission on Friday announced that Estonia will adopt the Euro on Saturday, January 1 and thus becoming the 17th member of the Euro zone.
Estonia will adopt the currency at midnight as preparations for the introduction of the Euro were completed. Estonia’s commercial banks have already received bank notes and coins from the Estonian Central Bank.
"I congratulate Estonia and warmly welcome all its citizens to the euro area. The Euro is there to improve everyday life," European Commission President José Manuel Barroso said. "It makes travel elsewhere in the Euro area easier and cheaper for Estonian citizens, with no need to change currencies and pay commission."
In addition, banks have supplied Euro cash to shops and businesses under contract so they can handle payments and return change in Euro starting on Saturday. With the addition of Estonia to the Euro area, over 330 million people will share the same currency.
"This is a great achievement and a fair reward for a country that has been firmly committed to maintaining sound fiscal policies," said Olli Rehn, European Commissioner for Economic and Monetary Affairs. "The single currency will provide a stable framework for the Estonian economy, which together with sound fiscal and macro-economic polices will create the basis for economic prosperity."
During the first two weeks of January, there will be a dual circulation period in which the two currencies (the Euro and the Estonian kroons) will circulate in order allow a gradual replacement. However, shops and businesses will only return change in euros to speed up the process.
The prices on shops will also be displayed in both euros and kroons (EKK) in order to facilitate for consumers getting used to the new exchange rate. This rule will be in use until June 30, 2011 and is supervised by the Estonian Consumer Protection Board.
The Estonian citizens have been able to buy 700,000 mini-kits of Euro coins with the Estonian national side free of charge in advance of the adoption. The official conversion rate is at 1 Euro per 15.6466 EKK. The Estonian Central Bank will exchange kroons for euros during an unlimited period.
"The Euro is a common good, not only for those who already use it on a daily basis, but also for those who, will want to adopt it at some point in the future as well as those who have no such intention. The Euro is both a world currency and one of the pillars of the European Union," said European Parliament President Jerzy Buzek.
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