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September 2007

The belgian public administration's preparations for the euro. Geert Temmerman National Bank of Belgium. September 2007. Content. Some principles The General Commission and ADMI EURO Structure and proceedings of ADMI EURO Attention: differences!. General Commission for the euro.

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September 2007

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  1. The belgian public administration's preparations for the euro Geert Temmerman National Bank of Belgium September 2007

  2. Content • Some principles • The General Commission and ADMI EURO • Structure and proceedings of ADMI EURO • Attention: differences!

  3. General Commission for the euro 4 central working parties with dozens of working parties COM EURO COM ECO EURO ADMI EURO FIN EURO - legislation - accounting, budgetting, - processes and IT in administrations - training & communication - local administrations - social security - financial markets (1999) - cash (2002) - non-cash transactions - prudential supervision - consumers - companies, business .. - insurance companies - communication to "weaker social groups" - communication Specific working parties - conversion and rounding - contingency plan cash- changeover

  4. General Commission for the euro Some of its tasks: • Detect possible lacunas or loopholes and take initiative where necessary • Avoid overlap and other inefficiencies • Guarantee consistency of approaches in different domains • Create opportunities to exchange information and experiences • Be source of information for people in charge of introduction of euro within authorities, institutions, professional associations, ...

  5. General Commission for the euro Some principles about working parties: • All responsibilities remain with authorities or institutions having the natural competences, i.e. General Commission and its components do not take over responsibilities • Working parties and sub-working parties can be created and abolished in a flexible way according to the needs and possibilities • Working groups have representatives in other working groups when necessary

  6. ADMI EURO • ADMI EURO = one out of the four "central working parties" of the General Commission • Name is a word play: • Admi as a part of the lemma "public administration" • Admi as in "admitted to the euro area"

  7. ADMI EURO - Organisation • Chairman of ADMI EURO: secretary-general of the Ministry of Finance • Standing Cell of ADMI EURO: restricted group of people meeting regularly with chairman

  8. ADMI EURO - Organisation • Executive committee of ADMI EURO: secretary-generals of all ministries of the federal and federated governments • Group of general coordinators: • One for each ministry and administration • In charge of the change-over of their ministry or administration

  9. ADMI EURO - Organisation • 4 sectoral coordinators, chairing 4 technical transversal working parties: forms, laws and regulations, IT, training & communication • 4 technical transversal working parties created sub-working parties where necessary

  10. ADMI EURO - Organisation • Special working party on local authorities chaired by high official of the Ministry of the Interior, the chairman being member of the group of general coordinators • Special working party on the change-over of social security, chaired by general coordinator for Ministry of Social Affairs

  11. ADMI EURO - Organisation • Public consulting office ABC in charge of piloting the change-over project • Staff members of the General Commission were involved in: • The Executive committee of ADMI EURO • The group of general coordinators • The meetings of the 4 technical transversal working parties and the local authorities and social security working parties • Some of the sub-working parties

  12. ADMI EURO • July 1997: • Guidelines of the change-over of the public administrations • Drafted by ADMI EURO • Approved by ministers of finance and budget of federal and federated governments • May 1999: • Update of guidelines of the change-over of the public administrations in respect to final change-over step on January 1, 2002

  13. ADMI EURO Both documents dealing with payments, codification (= legislation), conversions and roundings, external communication of authorities, communication within and between authorities, budget, accounting, IT, accompanying measures such as communication

  14. Main challenges for ADMI EURO • Common approach by all authorities during transitional period vis-à-vis private sector in order to avoid chaos for individuals and companies • Simultaneous transition steps inside public sector in order to avoid problems with data communication between administrations

  15. Main challenges for ADMI EURO • Comply with rather ambitious general change-over plan, characterised by pushed respect of • Principle "no prohibition, no compulsion" during transitional period • Principle "continuity of legal instruments"

  16. Some particularities (Details beyond the scope of presentation) • Working parties issued additional guidelines and circular letters • Almost all documents available on official website www.euro.be containing a chapter on the change-over of public administrations, accessible for everybody

  17. Some particularities In the running-up to January 1, 2002: • Monthly reporting by administrations, under scrutiny of Public consulting office ABC • Monthly reporting by chairman of ADMI EURO to the federal government (Prime Minister) • Recommendation of general standstill for new legislation implying new IT changes, between mid 2001 and mid 2002 • Some applications were converted only after January 1, 2002

  18. Differences between first wave countries and newcomers • 2-stages versus big bang First wave: 2-stages introduction • 1999-01-01 • euro = single official currency • national currencies = national subdivisions of euro • 2002-01-01 • introduction of euro-cash • abolition of national currencies Newcomers: more or less big bang

  19. Differences between first wave countries and newcomers • Sufficient quantity of banknotes and coins • Availability of genuine coins and notes for staff training • Fleet of armoured vehicules • Density of bank branches

  20. Differences between first wave countries and newcomers • Impact of order of magnitude of conversion parity Examples:

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