The Euro: Expectations and Experiences,

an Early Assessment

Summer Research Report

Lucie Cerna ‘03

University of Puget Sound

Tacoma, Washington

August 2002

Table of Contents

1. Introduction........................................................................................3

1.1.1. History of Economic Monetary Union (EMU)…………………… 3

1.1.2. Three Stages of EMU…………………………………………….. 3

1.1.3. Admission Criteria of Member Countries………………………... 3

1.1.4. Member Countries………………………………………………... 4

1.1.5. Preparation of € day……………………………………………… 4

1.1.6. Name and Symbol………………………………………………… 4

1.1.7. Winners and Losers………………………………………………. 4

1.1.8. Advantages of the Euro…………………………………………... 5

1.1.9. Disadvantages……………………………………………………. 6

1.1.10. Euro/ Dollar Exchange Rate……………………………………… 6

2. European Central Bank……………………………………………...7

3. Banknotes and Coins………………………………………………... 8

4. Country Specific Experiences………………………………………. 9

4.1. GERMANY……………………………………………………………… 9

4.1.1. The Crisis of the Bookstores………………………………. ………12

4.2. FRANCE………………………………………………………………… 13

4.3. SPAIN…………………………………………………………………….14

4.4. GREAT BRITAIN……………………………………………………….. 15

5. Conclusion…………………………………………………………… 17

6. Works Cited………………………………………………………….. 18

7. Timetable…………………………………………………………….. 20

Introduction:

As a summer 2002 C. A. Johnson Endeavor Foundation Scholar of the University of Puget Sound, I received the opportunity to research on a topic of my interest: the euro or the single currency, introduced on January 1, 2002 in twelve European countries. I was able to compare the experiences in Germany, France, and Spain and find out about the prospects of Great Britain adopting the euro in the future. My research combined written publications and interviews with European citizens and is analyzed in the following report. All interviews and articles are translated into English to facilitate reading.

History of Economic Monetary Union (EMU):

The introduction of the euro on January 1, 2002 among twelve of the fifteen European Union members happened after 50 years of rapprochement in Europe, beginning with the wish of Germany and France to avoid another war between these two neighbors. Several treaties followed and the created communities were expanded by more and more members.

1) The Treaty establishing the European Coal and Steel Community (ECSC), which was signed on April 18, 1951 in Paris, entered into force on July 23, 1952, and ended on July 23, 2002.

2) The Treaty establishing the European Economic Community (EEC); Rome on March 25, 1957, and entered into force on January 1, 1958. Known as “Treaty of Rome”.

3) The Single European Act (SEA), signed in Luxembourg and The Hague, and entered into force on July 1, 1987, provided for the adaptations required for the achievement of the Internal Market.

4) The Treaty on European Union, which was signed in Maastricht on February 7, 1992, and entered into force on November 1, 1993, created the political Union amongst the Member States and brought about considerable changes to the existing Treaties. The treaty created the European Union and decided on the adoption of a single currency among member states.

5) The Treaty of Amsterdam, signed on October 2, 1997, entered into force on May 1, 1999: it amended and renumbered the EU and EC Treaties.

Three Stages of Economic and Monetary Union:

The EMU was gradually prepared for the single currency to ensure a smooth transition.

1) July 1990- December 1993:

• Dismantling of all internal barriers to the free movement of capital within EU.

2) Start January 1994:

• Establishment of European Monetary Institute (EMI), prohibition of financing of public sector by central banks, and avoidance of excessive deficits in public finances.

3) Start January 1999:

• Transfer of monetary competence to Eurosystem, fixing of exchange rates between the currencies, and introduction of the euro.

Admission Criteria of Member Countries:

To ensure the stability of the euro, all member countries had to pass certain criteria before they could be admitted. Greece was the last one admitted to the euro zone in 2001.

The criteria included:

• 2 years in Exchange Rate Mechanism (ERM)
• Inflation < 3.2%
• Interest Rates < 7.7%
• Budget Deficit < 3% of GDP
• National Debt Deficit < 60% of GDP
• Independence of National Central Bank

Member Countries:

These include 12 of the 15 European Union members:

Austria, Belgium, Finland, Germany, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Great Britain, Denmark, and Sweden decided not to adopt the single currency in the first stage.

The euro is also the legal currency in Monaco, San Marino, the Vatican, and the French overseas departments (Guyana, Guadeloupe, Martinique, and Réunion) and territories (Mayotte and St-Pierre-et-Miquelon).

Preparation of €-day:

The preparation for the January 1, 2002 launch of euro banknotes and coins in all 12 countries began on January 1, 1999 with the adoption of the euro in the finance sector, as well as double pricing on bank accounts and price tags to gradually introduce the euro to the public in the transition period. Finally in 2001, Greece adopted the euro as its currency after it had met the admission criteria. The governments of all the euro countries launched an information campaign with TV ads, newspaper and magazine articles, and brochures. Starter Kits with euro coins were sold around mid December 2001 to prepare citizens for €-day (Jan 1, 2002), when banknotes were finally available in ATM machines and shops. Businesses were required to pay for the euro conversion on their own since governments expected an increase in their profits. They had to have double pricing on tags, train their employees for the euro launch, update their software, and purchase new cash registers.

In most countries between January 1 and February 28, 2002, two currencies were in circulation and businesses were required to accept euro and national currency, although the majority of people only used euros after about two weeks. Since March 1, 2002, the euro is the only legal currency in all 12 countries.

Name and Symbol:

In 1995, the name Euro was adopted instead of Ecu, which resembled too much the former French currency. In addition, Germans did not want a currency that sounded like “die Kuh” (cow). € was chosen as a symbol for Europe, while = stands for stability. It was taken from the Greek epsilon and stands for the cradle of European civilization.

Winners and Losers:

As in every aspect of life, the euro also creates winners and losers. Winners are multinational companies, which save money on exchange fees for exports and take advantage of price transparency. Consumers can benefit from competitive pressures on businesses, which will be forced to decrease prices. Tourists will not have to pay exchange fees again for changing money and will be able to compare prices across the euro countries. Businesses and industries producing paper, software, cash registers or vending machines also profited from the euro conversion because everything had to be changed and updated. State authorities from the member countries have gained transparency to compare wages and tax contributions of citizens.

Small and medium sized companies are on the losing side since they are mostly national companies and thus do not save money on exchange costs for exports. In addition, these companies had to invest a lot of money into the conversion and adaptation to the euro, but cannot take advantage of price transparency. Banks are on the losing side because they lose a lot of money by the omission of exchange fees, but paid a considerable sum for the euro conversion. Governments of euro countries (or the citizens as taxpayers) also had to finance the conversion themselves and spent millions of euros.

Advantages of the Euro:

Besides increasing the political cooperation in Europe, the euro brings several many economic advantages.

• Market for 300 million European citizens
• 10 million businesses

Businesses:

• Facilitates the trading of goods and services
• Limits the risk of fluctuating exchange rates

Consumers:

• Price transparency
• Cross-border competition– lower prices

Travelers:

• No need to change money or pay exchange fees

One of the main advantages is the possibility for exact comparison of prices of products in different euro countries. I compared 15 articles (same quantities) in Germany, France, and Spain and discovered that both Spain and Germany had seven products, which were the least expensive of all three countries. Only stamps in France were less expensive than in the other two countries. Price transparency was definitely a benefit of the euro, even though it was unlikely that people would travel to Spain for example, just to buy some tomatoes. But it was nice to know that jeans were less expensive in Spain than in Germany and could be purchased during a vacation.

Price differences across the euro zone are due to differences in value-added taxes, wages, rents, transportation connections, and national preferences. From the 12 countries, Germany and Austria have the highest car prices, whereas Spain, Greece, and Finland have the lowest (FAZ). The European Commission has decided that in 2005, prices for cars and spare parts will have to be the same across the euro zone, creating an advantage for consumers. However, prices of other products will probably stay different, as I noticed while comparing same articles in supermarkets (Monoprix in France, Champion in Spain, and Toom-Markt in Germany) and other stores.

	France	Spain	Germany
Tomatoes	2.12	1.50	1.29
Onions	1.51	1.10	1.29
Salad	0.75	0.80	0.33
Carrots	1.20	1.25	0.99
Potatoes	2.58	1.85	1.99
Apples	2.73	1.38	1.99
Bananas	1.89	1.70	1.39
Milk	1.14	0.58	0.55
Butter	1.15	1.38	0.66
Eggs	1.28	0.52	0.79
Bread	0.90	0.51	0.76
CD- Joe Cocker	18.30	16.95	15.99
Stamp	0.46	0.50	0.51
Vogue	4.50	3.00	5.00
Movie Theater	6.50	5.00	5.50

Other comparisons made across the euro zone also show price differences. A can of coke is cheapest in Luxembourg with €0.32 and the most expensive in Finland with €1.20. Consumers can save money in Germany when buying 16 oz of beer (€0.58), but rather drink something else in Finland (€2.79). A Mars chocolate bar is cheapest in the Netherlands (€0.34) and the most expensive in Italy (€0.82). However, Italy is the cheapest for a pair of Levis 501 (€ 53.37), whereas Belgium is the most expensive (€74.29). Greece is the cheapest for Channel perfume (€66.31), one Big Mac (€2.15), and one liter of gas (€0.68). These products should not be bought in Finland (€106.30), Luxembourg (€3.10), or the Netherlands (€1.13), respectively (Bild der Frau).

These price differences are an advantage for consumers in all countries because they can compare prices and thus buy cheaper products during vacation or can order larger products online. Nevertheless, the euro also has disadvantages and its rate depends on the fluctuations of the US dollar.

Disadvantages:

• Monetary union precedes political union
• No possibility to adapt interest rates to individual countries/ problems
• Hard to come to an unanimous conclusion
• Economic, cultural, linguistic differences between countries

Euro/ Dollar Exchange Rate:

One of the main expectations of the euro was also the competition with the US dollar. The euro zone combines a market of 300 million potential consumers and thus provides the opportunity for investment and trade. However, the value of the euro fell from $ 1.16675 on January 1, 1999 to

$ 0.8230 in the fall of 2000.

The euro started to regain strength in the summer of 2002 due to the US account deficit and several scandals on Wall Street. The single currency finally attained parity with the US dollar on July 15, 2002 and managed to stay around this value over the summer. Investors were losing faith in the dollar and this helped the euro to gain strength. Or was the black market theory right?

As professor Schmalen from the University of Passau, Germany, explained: “About 40% of DM was used in other countries than Germany. Because of its stability, the DM was an official currency in some parts of the Balkans (such as Kosovo and Montenegro). When the date of the euro conversion was coming closer, the mafia changed all their DM in dollars to save its money. That is why the dollar was getting so strong. However, after the euro introduction, the mafia started changing the dollars into euros, which would be more practical in the end. Since large amounts of dollars were changed, the euro gained its strength.” But will the euro continue to be strong or will the dollar overtake its competitor?

Graph: October 2001- July 2002 Blue line: exchange rate

Green line: average rate

Advantages and disadvantages are associated with a strong euro. The advantages are low inflation, omission of changes in the interest rate by the ECB, increase in internal demand in the EU, and decrease in prices of raw materials (Sandri). In addition, consumers and investors gain faith in the single currency. However, there are also disadvantages created by a strong euro: a more competitive dollar, more expensive EU exports, and less growth of the European GDP (Sandri).

European Central Bank (ECB)

The ECB was constituted in 1998 and is located in Frankfurt, Germany. Its objective is price stability and control of inflation in the euro area, following the model of the German Bundesbank (national central bank). Inflation fell from 2% in May 2002 to 1.7% in June 2002 (ECB online). The tasks of the ECB are defining and implementing monetary policy for the euro area and setting one interest rate for all countries. In addition, the ECB conducts foreign exchange operations and holds and manages the official foreign reserves of the member states (ECB online). Even though inflation fell to 1.7% in June, the ECB left the interest rate by 3.25% in July 2002. It has not changed the rate since November 2001, but falling inflation might encourage the ECB to increase the interest rate.

Especially one interest rate can lead to problems because all 12 countries have different economic systems, but have lost the ability to adapt their interest rate to a particular economic situation. One interest rate that is appropriate for Germany can lead to problems in Ireland. If an economy is in recession, the government lowers the interest rate to increase spending and investment, but it cannot do anything since it is locked in the Eurosystem mechanism.

The Eurosystem consists of the 12 euro zone national banks and the ECB, while the European System of Central Banks (ESCB) is set up of the 12 euro zone national banks, and the national banks of Great Britain, Denmark, and Sweden. However, these three national banks are not part of the governing council, which is the supreme decision-making body of the ECB. They are only members of the general council, reporting on the progress of the countries that have not yet adopted the euro (Annual report).

The executive board of the ECB consists of President Willem Duisenberg (Dutch), vice president Lucas Papademos (Greek) and four other members. In a recent research conference, Mr. Duisenberg pointed to the limitations of international policy coordination, but nevertheless encouraged cooperation, such as between the ECB and the Federal Reserve. The ECB not only targeted the exchange rate to maintain price stability, but also employed a “monetary policy strategy that focuses on the internal stability of the currency” (ECB online).

The ECB’s function is also to serve as an information source for the public. I addressed the bank in March and again in July to ask for an interview, so I would be able to ask an employee several questions. Even my email to president Duisenberg explaining my research and questions did not help me to get in closer contact with the ECB. Not only was my wish for an interview repelled due to “scarce resources of the summer period”, but also none of the 1,100 employees took the time to answer my questions personally per email. I was politely referred to the website to search for answers to my questions. In addition, my effort of several months to attend the International Research Forum on Monetary Policy proved unsuccessful few days before the conference, “due to the very high number of requests for participation”. If I had been a professor or politician, the situation would probably have looked differently. Interested students and general public are only advised to read publications online (http://www.ecb.de).

The ECB was responsible coordinating the distribution and implementation of euro banknotes and coins to banks and stores prior to January 2002 to ensure sufficient supply for € day. The bank’s function was to facilitate a smooth cash change-over by informing citizens, businesses, and governments of the participating countries.

Banknotes and Coins

The introduction of the euro meant that citizens of the 12 countries had to get used to new banknotes and coins. The seven banknotes of the euro were designed by the Austrian artist Robert Kalina in 1996 and chosen from 44 artists by the European Monetary Institute (EMI) and the public. They depict bridges, windows, and gateways not from certain countries, but from seven periods of architectural style. Classical for the € 5, Romanesque for the € 10, Gothic for the € 20, Renaissance for the € 50, Baroque and Rococo for the € 100, the age of iron and glass architecture for the € 200, and modern 20th century architecture for the € 500 (ECB). The banknotes have special safety features and are designed for blind people. Each banknote has a different color and size to facilitate distinction.

The banknotes contain the following names and motives:

· name of the currency – euro – in both the Latin (EURO) and the Greek (EYPO) alphabets

· initials of the European Central Bank in five linguistic variants – BCE, ECB, EZB, EKT and EKP – covering the 11 official languages of the European Community

· flag of the European Union

By January 1, 2002, around 14.5 billion euro banknotes were printed for the 12 participating countries: 10 billion banknotes to replace national banknotes and 4.5 billion banknotes as stocks. These banknotes represented a value of about € 600 billion (ECB). The national banks of the member countries were responsible for the cost of printing new banknotes and coins. Estimates are that the cost of printing was around € 1.23 milliards for Germany. Large companies had to pay between € 25 and 100 million for the euro conversion, while retail trade was affected the most with a cost of about € 7.67 milliards (Baulig).

Germany, the country with the most inhabitants, produced 4,342 million banknotes, while the least populated country Luxembourg produced 46 million notes. € 50 banknotes were produced in the largest quantity (3,674 million), closely followed by € 20 (3,608 million). The production of

€ 200 banknotes was the smallest with 229 million. The old banknotes were shredded into bricks and used in thermal power-stations and cement factories. If Germany piled all its old Deutsche Mark banknotes, it would create a stack of 194 miles and 3,086 tons.

The eight euro coins have the map of the euro countries, together with the 12 stars of the European Union on the front side and national motives and symbols from each country on the back. The common side was designed by the Belgian artist Luc Luycx. The sovereign countries Monaco, San Marino, and the Vatican also decided to adopt the euro as their currency, and thus were allowed to have their own national sides of the coins. Due to their rarity, these are in particular of great collector value. Some countries have only one motive on all coins (Belgium, Ireland, Luxembourg, the Netherlands, and Vatican), some have three (Finland, France, Germany, Monaco, Portugal, and Spain) and some six different motives (Austria, Greece, Italy, and San Marino). All coins can be used in any of the 12 member countries.

Germany has an oak twig on 1, 2, and 5 cent coins, which was already on the old Pfennig. 10, 20, and 50 cent have the Brandenburg Gate in Berlin, which is a symbol for the division of Germany in 1945 and then unification in 1990. €1 and 2 have an eagle on their back, the symbol for German sovereignty.

The French chose Marianne, their symbol of France, for 1, 2, and 5 cents and a sower, a constant symbol in history of French Franc, for 10, 20, and 50 cents. A tree symbolizing life, growth, and continuity is on the back of €1 and 2, together with the motto of the Republic: Liberté, Egalité, Fraternité.

Spain has the cathedral of Santiago de Compostela (a pilgrimage destination) on their 1, 2, and 5 cents. The famous author Miguel Cervantes decorates 10, 20, and 50 cents, while the current Spanish king Juan Carlos I de Bourbon was chosen for € 1 and 2.

Recent polls show that people consider the euro coins and banknotes easy to recognize and to handle, even though the banknotes are preferred by the majority of people.

Germany

Germany was well prepared for the euro and the transition went smooth. However, the main problem ended up to be the “teuro” (from teuer, expensive). The government relied on the self-obligation of businesses to convert prices exactly, but these saw the opportunity to increase prices because the conversion usually led to uneven prices. Since they were not required to continue double pricing after February 2002, they had a free hand in adjusting their prices since customers could not compare prices exactly. Even though Germany has an easier conversion rate than the other countries (€1= 1.95583 DM, rounded to 2). People noticed that on some products, the DM was just changed with the € sign, an increase of 96%. Due to the anger of teuro, Germans lost faith in the single currency, while about 54% wished the Deutsche Mark back in May 2002 (Kirk). Every price increase was blamed on the euro, although bad harvests of fruit and vegetables were also partly responsible for some price increases. Nevertheless, most of the times, businesses took the opportunity to receive more profit and usually had some excuses for the increase. Here are some common excuses (collected from Focus and Bild).

• Price increases have nothing to do with the euro.
• The prices for ingredients and electricity increased.
• Our distributors increased prices.
• Others increased prices as well.
• We improved the quality of our products.
• Our ice cream scoops are bigger now.
• Despite of price increase, we are still cheap.
• Due to the environment tax, our prices increases, which we had to pass to customers.
• We have to make up for the cost due to change of menus.
• We have to make up for the lost profit due to mad-cow-disease crisis.

The government would like to calm down the population by pointing to the result of the statistical publication that inflation is only 1.7%. However, people are persuaded prices increased more, especially groceries and restaurants. Among the products compared, those for every-day-life are only a small percentage and thus overrun by expensive items, such as car or rent. If those are left out, the inflation is at least 4.8% for daily products. As Irena Cerna, housewife, pointed out: “The money is disappearing much quicker with the euro. Especially prices of groceries increased everywhere. So I’m only buying what is necessary.”

	2001 (€)	2002 (€)	% Increase
Tomatoes (1kg)	1.93	3.13	62
Onions (1kg)	0.81	1.27	57
Potatoes (1kg)	0.72	0.99	38
Carrots (1kg)	0.98	1.26	29
Spaghetti (500g)	0.89	1.01	13
Apples (1kg)	1.82	2.00	10
Milk (1l)	0.73	0.77	5
1 cup of coffee	1.65	1.74	5
1 Pizza	4.21	4.43	5

However, supermarkets like Aldi or Plus were advertising price decreases in January 2002, but they had increased prices already in summer of 2001. Restaurants who wanted to take advantage of the euro are now complaining about empty places and decline in consumption. People are saving where they can and especially reduced going out to dinner or having a café. They rather stay at home and cook themselves than paying such high prices. In Berlin, around 20,000 restaurants are facing closures because they hardly have any customers (Picaper). 33.7% of businesses are currently experiencing sales deficits of 10% (“Handel im Überlebenskampf”).

Kerstin Freitag, waitress at Restaurant Kowalski, Passau: “Customers are having lunch specials and giving fewer tips. At the beginning, they gave me €3 for a €2.30 drink, later €2.50 and now some customers don’t give tips at all. They have become more careful with their money, but no wonder if a drink costs almost as much as a meal. They think twice about going out for dinner.”

Customers have the power of purchase and in the end will force restaurants to decrease their prices if they want to stay open also next year. But the restaurants and cafés, which did not raised prices are doing well. Gitte Reder, owner of Café Hugendubel, Frankfurt: “I‘m glad I still have my regular customers. I did not raise my prices, but all the ingredients have become more expensive. One person left last December, but I did not employ a new one. I suspected problems with the euro.”

Prof. Helmut Schmalen, professor of business at the University of Passau, is encouraging customers to defend themselves against price increases and apply consumption refusal. He is accusing Italian ice cream parlors in Germany of price monopoly because all of them raised prices to €0.70 for a scoop. Last year, one scoop cost DM 1 (€0.51). Cartels are prohibited in Germany and so he hopes to deter other price agreements.

Prof. Schmalen also gives an example of saving money. In January of 2002, he went to his hairstylist, where he had usually paid DM 42. Since he expected increased prices, he visibly placed a calculator on the table. Of course, his hairstylist noticed it and asked at the end, how much Prof. Schmalen was willing to pay. The latter used his calculator and replied: “21.47 Euro”. Without a calculator, he probably would have paid €25.

From time to time, Prof. Schmalen is going on a trip to close Austria to buy gas, which is €0.15/ liter less expensive than in Germany. With the saved money he and his wife can even stop to buy something to drink. Not everybody is living so close to another country, but savings are also possible by comparing prices on the internet and then ordering articles online.

Some media took the initiative to fight against price increases. The widely read newspaper “Bild” launched a campaign with the teuro- Sheriff, Hauke Brost, who accepted complaints from readers about specific stores and restaurants and then confronted those with questions on their price increases. He received so many letters that he would have had to work 24 hours every day to read them all. Hauke Brost also pointed out to businesses, which offered special sales or decreased their prices, so readers could save money.

The teuro made it several times on the front page of the magazine “Focus”, which not only invented this word, but also encouraged readers to send in a questionnaire about price increases and then evaluated 1300 responses on July 1, 2002. One of the questions was about who increased prices the most. 28% of people considered restaurants and cafés to have taken advantage of the euro, followed by retail stores (27%), supermarkets (20%), services (19%), authorities (4%), and others (2%).

The German Finance minister, Hans Eichel, finally admitted that it was a mistake to rely on the self-obligation of businesses not to raise prices. In May 2001, he expected price decreases due to competition pressures, but only one year later, he had to admit businesses took advantage of a blank check. Chancellor Gerhard Schröder provided a lesson for new euro members: “Germany should have made it the law for one year to have double pricing, as did Austria, for example, and they have the least complaints about price increases among all member countries.”

Politicians also took steps to calm down the teuro-anger of the population. The minister for consumer protection, Renate Künast, invited representatives from gastronomy, consumer protection groups, and trade unions to an anti-teuro conference to pressure them to decrease prices and revive the confidence in the euro. Restaurants and cafés were seen as the worst offenders; 84% admitted to have increased prices after January 1 (“Teuro Conference..”). A central report place was set up online (www.preis-wert-forum.de) to provide the possibility for citizens to complain about price increases and publish the names of businesses with price increases. The website was visited by 200,000 people in 24 hours and broke down several times (“Künasts Teuro-Forum Brummt”). However, after several weeks, businesses complained about the loss of protection and asked for anonymity because not all of them considered themselves black sheep.

Besides teuro complaints, many people are in favor of the euro and its advantages. In the Europe Forum in Frankfurt, which was set up to provide discussion with citizens, Mr. Bullmann, European Parliament representative for the Social Democrats, still considered the euro as an “overdue, important, and right step” because of omission of exchange fees, need of stability in a time of 120 currency crisis, and the beginning of common trade politics. Most German students are also in favor of the euro and of European integration, but they are aware of differences among the euro member countries. Patricia Reh-Zaufel, student of Auswärtiges Amt (Department of State), Germany: “I like the euro, but I think it will take a long time until the different political and economic structures will converge. I‘m keeping my fingers crossed it will work out.”

Students are also angry about price increases. Anja Hartmann, business student from Passau: “It‘s too bad the euro is associated with teuro because it was an important step for European integration and economies. But everything has become so expensive. As a student, I have to save even more than before. Germany has an easy conversion, but I still consider €1.5 to be less expensive than DM 3, it‘s a psychological effect.”

Kerstin Freitag, international affairs student from Passau: “I enjoy looking in my purse for coins from other €-countries. It makes me feel a little bit more European.” Young people are fonder of the euro because they have not lived most of the life with the DM and so they get easier used to a new currency. In addition, they have learned a lot about the euro in their high school or university classes. Frau Müller, teacher at the bilingual high school Ziehenschule in Frankfurt: “Young people had fewer problems with the euro than older ones. I taught extra classes on European Union and euro before the introduction and I think the students were better prepared.” Her 70 students from grades 10 to 13 considered themselves pro-European, but also aware of price increases.

Questionnaire (May 2002):

1) Did you feel well prepared and informed about the euro?

2) Have you become used to the euro in the first months?

3) Would you like to return to the old currency?

4) Do you feel more European with the euro?

5) Do you feel prices increased with the euro?

6) Did you change your buying behavior?

7) Do you support European Union (EU) enlargement?

Many students admitted they still converted euro prices back in DM to have a better idea about the price and thought longer about buying something. At the beginning, some spent more money than usually because prices were only half and thus everything seemed less expensive. Some complained that they bought less, but still the money was spent quicker. As one student said, the euro conversion should have been regulated by law as did other countries because the self-obligation of businesses only led to massive price increases. Euro was commonly associated with teuro. Students, who admitted having had problems getting used to the euro, considered conversion as the main reason. Even though 85.7% of the students supported EU enlargement, 56.6% of those were only in favor of enlargement of certain countries since new members meant higher costs.

The Crisis of the Bookstores

The refusal of consumption by German customers hit bookstores very badly: sales decreased by 3.8% between January and April 2002, 150 small and middle sized bookstores are in existential difficulties, the number of customers fell by 6.7% and these spent 6.4% less money than the year before (Beckmann). Even large bookstores had a decrease in sales and could only hope for good Christmas sales. One of these bookstores is Hugendubel, occupying the 2^nd market position with its 28 stores around Germany, 1,100 employees, and sales around €200 million. Its sales decreased “only” by 2% in the first six months of 2002, compared to the average 7% of the rest (Hintermeier).

However, the owner of Hugendubel, Heiner Hugendubel, already took safety measures to save jobs of his employees: beginning of July, these are working 20% less time, but receiving only between 6 and 7% less money. The rest pays the labor office until the end of the year. This step was necessary, but damaged a little bit the reputation of the house Hugendubel. Some publishers called to ask if they would receive money for the books sent, smaller bookstores were angry that Hugendubel allowed tax payers to contribute money towards the saving of employees while they were fighting with closings (Hintermeier).

Heiner Hugendubel said that employees cooperated immediately on shortened working hours, but the reality seems different, as several employees of Hugendubel Frankfurt told me. Christina Pulm: “We work less, but also get less money and our salaries were not much anyways. We did not have another choice than to cooperate if we wanted to keep our jobs.” The chef of Frankfurt, Peter Kaiser stays more optimistic: “Customers suspect price increases in book stores, but we are probably the only business that converted the prices correctly. Bookstores are bound by price binding. Now we are hoping for good Christmas sales.”

Although bookstores did not increase prices, some publishers took the opportunity for price changes, which were blamed on bookstores. Price binding exists in Germany, which means that one book has to be sold for the same price in every bookstore. Christina Pulm: “Customers are buying less expensive books and don‘t believe that we did not increase prices. The average price for a children book is about €8 now, for a cookbook it is around €13. Before, we easily sold cookbooks for DM 60 (€30.68).”

Customers are saving where they can, as store detective Ahmad Asti agreed: “People are stealing more after the euro introduction, even cheap books. Many are sitting on the couches for hours and reading the books or copying whole passages. Hugendubel will continue to lose much money if they won’t get rid of the couches.”

Especially the sale of software, tapes, and non-book articles decreased by almost 30%, and customers are buying paperback books more than ever to save money. Family Müller confirmed this assumption: “We are money saving where we can and mostly buying paperback or checking books out at the library.” Customer savings led to a decrease in sales by 17.44% in June 2002 (store in Frankfurt).

June 2001 (€)	June 2002 (€)	Decline €	Decline %
2,153,750.31	1,778,149.73	375,600.58	17.44%

Hugendubel was well prepared for the euro introduction with new cash registers, price tags, and training of employees. Nobody suspected that the euro would lead to such a sales crisis and loss of enthusiasm of employees. The remark of Martina Hippchen (“I hope that the next time you come, we will still be here.”) made me think I had no idea while I worked at Hugendubel for four years that this large business would experience such a loss one day, and the euro was mostly responsible for it.

Conclusion: Bookstores were clearly the losers of the euro because they did not export abroad and lived from their national sales. The euro only cost them money, but they could not benefit in the same ways as did multinational companies.

France

After experiencing the anger over teuro in Germany, I expected similar feelings in France over the increase in prices. However, during the time I spent in Paris, I did not find one article about price increases in France in the newspapers Figaro and Le Monde. The only articles about teuro were about Germany. Even though prices were also increased during the summer of 2001 and again January 2002, the French usually accepted those since these were only small changes. It was much more difficult for the French to convert euro prices back in French Franc (FF) because the rate was 6.55957 FF for €1. That is why the government made a strong recommendation to have double pricing at least until July 2002 to facilitate shopping for customers and sustain confidence in the single currency.

I noticed double pricing in many stores, supermarkets, restaurants and cafés, which made those more credible because customers could compare prices and often remembered the old FF price. In 2001, the French government commissioned around 300 officers to spot check prices. Businesses could not complain about decrease in sales, the French still went out to dinner or to a café and did not take such drastic steps after the euro conversion as the Germans. Paris was still crowded with tourists, hotels were completely full, even though they probably also “had” to round up prices to have more even numbers.

As expected, young people got used to the euro quicker as older ones. Some of those had not accepted the new FF in 1960 and still calculated in the ancient franc! Especially in the first weeks after the euro introduction, people were going around with small calculators to convert prices more easily. I noticed that some cashiers still had trouble with the euro because they had to examine the coins before they gave back the change.

Delphine Sauvanet, student at the Université de Paris: “Prices were converted exactly for January 2002, but then they were rounded up. I paid €280 for rent last year, this year it is already €290 and next semester it will be €300. The French complained at the beginning, but then they were busy discussing and following French elections, so they accepted the euro more quickly than Germany. However, they still have to adapt completely to the coins, but nobody really likes the 1, 2, and 5 cent pieces. It is much harder for the French to calculate the prices because the conversion rate is such an uneven number; so many people multiply the euro price by 7. At the beginning, the French spent too much money because €1 seemed such a small amount. However, when they converted it in FF, it was almost 7 FF. They became more cautious about spending money. I save much more than before because the money disappears quicker.”

Hotels were not experiencing such drastic consumer savings as in Germany. Monsieur Jean, owner of Hôtel Jean Bart: “I’m glad that clients are still coming to our hotel. So far we are not experiencing a decline in tourists. I have gradually become used to the euro and think that it is practical for traveling since you don‘t have to change money any more. Even though prices increased, there is nothing we can do now.”

As expected, multinational companies are the winners of the euro because they save exchange fees, associated with exports. Audrey Thibault, human resources employee of L’Oréal: “Since L'Oreal commercializes its products through distributors; the group just converted prices exactly from franc in euros. We are employing even more people this year and our sales have risen compared to last year. We are experiencing economic growth.” The numbers prove it (Jan 1- June 30, 2002): Consolidated sales grew 5.6% compared to 2001 and amounted € 7.4 billion (L’Oréal Online).

Conclusion: The French still had most prices shown both in euros and francs to facilitate conversion for customers, a step that was abolished in Germany after February. Even though prices increased as well, the French accepted those more quickly, but these changes were also smaller than in Germany. As my comparison of groceries in France, Spain, and Germany showed, the French still have to pay the highest prices of the three countries, but have not complained so far. They continued to enjoy life and were more occupied with French elections and then the soccer world cup than with the euro.

Spain:

Spain was similar to the situation in France: most stores and restaurants had double pricing (following the recommendation of the Spanish government), an uneven conversion rate, and general increase in prices. Newspapers, such as El País or La Vanguardía, seldom wrote anything about price increases, but they did report about the decrease in tourists on the Balear Islands (11%), Canarias Islands (5.4%) and other vacation destinations (“Canarias y Baleares Reciben Menos Turistas”), which were mostly visited by German tourists. Since Germans were saving this year more than ever and rather traveled to cheaper Bulgaria or Turkey, Spanish hotel and restaurant owners also suffered from a decline in sales. Even though tourism increased by 19.7% (Metro) in the region of Catalunya with its main city, Barcelona, waitress Mar of the restaurant Cala Lluisa told me that customers were saving money and mostly having the good value ‘menu del día’ and other less expensive items.

Most people I talked were happy with the euro, but complained about price increases and the fact that they still converted all prices into pesetas. The Spanish also had an uneven conversion rate of 166.385 pesetas for €1, so most stores left double pricing to sustain the confidence of customers. They had to get used to the fact that even coins of few cent had more value than their former smallest coin, 1 peseta.

Señora Micó from a fruit stand in the main market of Barcelona, la boquariá, did not complain about a decline in sales, but the market was also widely visited both by locals and tourists and all the fruit stands had similar prices due to the competition pressure. The Spanish euro followers mentioned advantages for traveling as one of their main points. Jacquelita, retired: “I‘m very happy with the euro because it is handy for traveling. I visited my niece in Germany and did not have to change money.”

Antonio, concierge: “I like the euro and got used to it quickly, even though I‘m still counting in pesetas in my head. The euro is handy for traveling, people that are not happy with it probably don‘t travel.”

Elena, teacher: “The euro is superb. Before I always had to change money when I traveled to Germany and paid high exchange fees, but with the euro, I can use one currency in both countries. I got used to the euro quickly and would not want to change it again for pesetas. But I think that the small 1, 2, and 5 cent coins won’t be in use in few years. Nobody likes them and they are so heard to see when the coin is not new anymore.”

Good preparation for the euro was also responsible for the smooth change from pesetas to euros. Marcel, Spanish teacher: “I got quickly used to the euro because our government prepared us well with information and starter kits.“

The euro skeptics were mostly concerned about the continued benefits of Spain and the preservation of its culture and history. These were in most parts European Union skeptics and considered the euro as part of a political union and not only as a monetary union.

Esteban, security man: “I‘m euro-skeptical and not happy with the euro because each country has its own history and culture, which cannot be substituted with a European one. The prices increased everywhere and the conversion rate is so hard to calculate. I don’t always know how much I pay because I’m used so much to the peseta.”

Xavier, concierge: “I miss the peseta, it was a national symbol. Spain has such a long history, which cannot be replaced with a new one. I‘m interested in Spain and do not care much about the rest of Europe. Spain received a lot of money from the European Union, but I’m afraid it will lose a lot when the EU becomes bigger.”

Conclusion: Spain, one of the continued enthusiasts for European integration among the members, showed its acceptance of the euro among the majority of citizens. Increase in prices and problems with conversions were similar to the ones in France and Germany, but double pricing increased the confidence of consumers. Masses of people attended the sales in July because, as everybody, the Spanish also like to save some euros where they can.

Great Britain

Great Britain is the only country of the four examined which has not adopted the euro, even though it is a member of the European Union. The British government decided not to join the Economic and Monetary Union and rather wait until further developments were made. However, the debate over possible euro adoption has divided public, businessmen, politicians, and journalists and thus made a decision difficult. Those in favor of the euro include: Prime Minister Tony Blair, the Labour Party (not all members), the Liberal Democrat Party, multinational companies like Toyota, Nissan, and Ford, majority of trade unions, academic economists, the well-known financier and currency speculator George Soros, and Britain for Europe group. The list of euro opponents is long as well: Sir Edward George (chancellor of Bank of England), Conservative Party, small businesses and retailers, London economists, former Prime Minister Margaret Thatcher, most newspapers, some trade unions, and the Business for Sterling group (Browne).

A referendum is planned by the government, but so far the date has not been set. It could be in 2003, 2005 or even later. Even though Tony Blair is in favor of the euro, only 36% of British were backing the single currency in May, while 49% were opposed (Karlsen). The euro opponents are supported by Rupert Murdoch who is spreading “vote no” in his newspapers The Sun, The News of the World, The Times, and The Sunday Times (Mahony). Several comedians and members of parliament from the No campaign released a 90-second film, which will be shown to 5 million people of age group 25-40 in cinemas across Britain. It is supposed to be a funny sketch, but has received complaints by the Yes lobby, the European Commission, and British Jews because the video features Adolf Hitler and thus leads to offensive of Holocaust survivors (Spiteri).

While politicians and economists are still debating the pro and contra, especially larger stores (for example: Harrods, Marks & Spencer, Selfridges, Debenhams, and Next) and most hotels in London are already accepting euros to facilitate shopping for tourists. They accept euro banknotes and give back change in pound. Some stores have price tags in both pound and euro, even though they do not accept the latter. They export their products to the euro zone and do not want to print two different price tags. The British Museum even has an exhibition on the 12 European countries and shows the new euro banknotes and coins. The museum also accepts donations in pounds, euros, and dollars. In addition, collectors can buy euro coins from all countries in special stores. Euros are not totally foreign to certain people, but the majority of the population is still against the euro. Some admit they are not adequately informed about the single currency; others see the euro as part of a monetary and political union and do not want Great Britain to be totally overruled by decisions of the European Union. However, people from Scotland, Wales, and Northern Ireland consider the euro more positively than the English, who painfully remember the lost empire (Sontheimer).

Economic considerations favoring the euro are as strong as those opposing it. The pro-euro group points to the fact that Great Britain’s convergence with Europe has been growing in the last years, which would lead to high chances of success of the euro. Opponents say that the economy of GB is more dollar based. Even though 50% of trade is conducted with EU, 50% of trade and 2/3 of investment are done with the rest of the world. Annie Smith, bookseller: “Britain would miss out on trade opportunities if it did not adopt the euro.”

The euro would help London to keep its financial influence, but the influence has not diminished since the introduction of the euro in the 12 countries. However, this could change if GB did not adopt the euro in the near future. International businesses and investors will leave or stay away if the euro will not be introduced. The euro would diminish the volatility of the pound because it would be bound to a stable currency. In addition, the euro has increased in strength in the last months, which would dismiss the argument of euro opponents that the pound was much stronger than the euro and thus only bring disadvantages. Nick Parker, salesman at Odeon movie theatre: “I’m against the euro because it is not doing well compared to the strong pound.”

Customers would benefit from price transparency and competition and travelers from omission of exchange fees. Mr. Musfi, concierge at Windsor House Hotel: “I would welcome the euro because I think it is a good idea and very handy for traveling. Our hotel accepts the euro, but so far not many people are paying with it.” Nevertheless, these advantages constituted only small percentages and diminish euro’s relevance. The single currency would lead to an increase in trade because the European market had about 300 million potential customers. So far, the access to the EU market continues, and this without disadvantages of a single currency.

The euro could bring a more competitive GB economy, but euro opponents point to the fact that the British economy is on the 4^th place. Yoshida Gonzales, receptionist: “The levels of living are very different in Europe and the British would be upset to see they pay much more for the same product than Spanish, for example. They are used to the prices in pound and associate everything with the Queen. They don’t want to pay for poorer countries, which they probably would have to if Britain was part of the EMU. Europe won’t see the consequences, whether good or bad, until maybe 10 years. I don’t think GB will adopt the euro because it might not benefit at all.”

Up to this point, Great Britain has not experiences economic disadvantages that it has not adopted the euro, but those could come in the future when businesses, investors, and public have lost patience with Britain’s indecision. The government under Tony Blair proclaimed that a referendum was possible once the five economic tests were met. These include:

1. Has our economy converged with that of Europe?

2. Is there sufficient flexibility to deal with any problems?

3. Would joining the euro promote investment?

4. What impact will joining have on the City?

5. Will joining the euro promote higher growth, stability, and the creation of jobs?

Professor Iain Begg of London’s South Bank University told BBC that the tests for euro had passed. The UK could withstand economic shocks if it joined the euro, and jobs and growth would be boosted. It would reinforce London’s position as Europe’s leading financial centre. However, “political obstacles remain in the way” (Mahony).

While businesses and unions are more preoccupied with economic factors, the public is more concerned about political ones. The euro could lead to a bigger integration and cooperation with the rest of the European Union members, but in case of the euro adoption, many British fear the loss of sovereignty, surrender by a European superstate, and the conquer of Europe by Germany and France. Kamil Miah, waiter at Bombay Aloo: “Great Britain has a very strong identity, so it would be strange not to have the Queen‘s head on the notes. We would lose sovereignty.” Nichola Tooke, sociology student: “Right now I‘m against it, but ask again when I come back from Greece. My grandfather (84) is totally against it because he does not want GB to be ruled by anybody else.”

However, Great Britain has the right to veto all EU decisions and thus would not be totally left to the mercy of the EU. In addition, Germany and France have always tried to increase European cooperation and would welcome Great Britain as another member of the EMU. Others pointed to Britain’s isolation and wish of self-governance to explain their anti-euro position. Laurie Friday, administrative officer: “The British do not want to give up their pound because we are isolated anyways from Europe.” Great Britain would receive more influence in decision-making because non-euro members are left out of many decisions.

Many British are afraid of losing the pound, a national currency for 1200 years and symbol of Great Britain. Kumiko Okabe, English student: “It is sad to lose the national currency. It is nice to have some coins or notes as a souvenir from a foreign country, like DM, pesetas, francs. It might be exciting to have a new currency for a while, but I think the British will miss it.” They cannot imagine not having the Queen’s head on their banknotes. The pound was currency for many years, but did not always have a proud history. The Queen has not appeared on the banknotes before 1960 (Browne) and her head could be on the national side of the euro coins. Shaun Oaten, bookseller at Waterstones: “I have nothing against the euro - it is just a matter of time until Great Britain adopts it as well. Some British are bound to the Queen as if GB still was an empire, but that is not true. I‘m not very fond of this country and think it is rather backwards.” Arguments for and against the euro are numerous and it is hard to foresee what the consequences would be if Great Britain adopted or did not adopt the euro. The yes or no debate continues…

Conclusion

The euro adoption in 12 European countries finally happened after 50 of rapprochement and many years of preparation. €-day on January 1, 2002 went smoothly in all participating countries and the euro was welcomed by millions of excited people. Germans gave up their Deutsche Mark they had since 1948, the French the French Franc from 1960, and the Spanish their peseta, adopted in 1869. 67% of Germans, 67% of French, and 80% of Spanish were in favor of the euro in spring 2002, increases of 7%, 4% and 11% respectively, compared to Europe polls in fall 2001.

However, one currency for 12 countries also brings problems because the individual economies lost the possibility to react to their specific problems. Decisions are made by the European Central Bank and every country has only one vote of twelve. Several countries (Germany, France, Italy, and Portugal) are facing financial penalties if they do not decrease their public deficits. Was the euro a gamble of historic proportion? Are there too many differences among European countries to allow the success of a single currency, as Professor Friedman predicts? Prof. Milton Friedman is one of the leading libertarian economists: “EU and Euro will collapse within 10 years due to linguistic, cultural, and economic differences.” (Frydrych)

Was it a mistake that a monetary union preceded a political one? It is not for the first time, that several countries adopted a monetary union. The whole Roman Empire had one single currency. A Scandinavian union existed, as well as a monetary union between France, Belgium, Italy, Switzerland, and Greece from 1865 until 1929. Luxembourg and Belgium had a monetary union for eighty years until 2002. In addition, Austria, the Netherlands, Luxembourg/ Belgium, and France tied their currencies to the Deutsche Mark. All these monetary unions were successful without a common government (Jungblut). A political union has already preceded in the form of the European Union.

However, besides economic and monetary difficulties, the euro has led to massive price increases in most countries. Especially German businesses have welcomed the euro as an opportunity to increase profits. Germans are angry about these price increases and thus associate the single currency with teuro. Many feel nostalgia of the Deutsche Mark. Other countries were better prepared for problems due to an uneven conversion rate: they required double pricing for 6 or 12 months to make prices more transparent and increase euro confidence among customers. The French and Spanish have not stopped to enjoy life and do not spend so much time deciding whether to buy a product or not, although they have also started saving more. The debate in Great Britain will continue unless the government will launch an information campaign and explain to the public how benefits will outweigh costs and why Britain would lose money and influence in the future if it did not adopt the euro. Public opinion could change after the summer when many citizens will have had the chance to travel to continental Europe and used the euro themselves (Mahony).

The other two EU members, Denmark and Sweden, are also planning referenda in the future. In 2000, the Danes decided not to adopt the euro, mostly because of the falling euro exchange rate at the time. After the successful euro adoption in 12 countries in January and the stronger euro, the numbers changed. Now, 60% of the Danes would welcome the euro (Pihl). The situation looks similar in Sweden: a new poll shows that 56% of Swedish citizens would support entry in the Economic and Monetary Union, while 41% would oppose it (Mahony).

The EU is currently negotiating accession with 12 Central and East European countries. New members will join the European Union by 2004 and those could also adopt the single currency in several years when they have met the strict admission criteria. In addition, they will have to adopt the entire legal framework of the EU, continue to liberalize prices, guarantee property rights, transfer responsibilities from governments to markets, and structurally reform the corporate and financial sectors (“Monthly Bulletin”). Once all the requirements for euro adoption are met, the new members will need to start the preparation for the single currency. Besides beginning an early information campaign, their governments will also have to set certain laws to ensure fair price conversions. Especially young Europeans are keeping their fingers crossed for the success of the European step towards monetary and political integration.

Works Cited:

Annual Report 2001. Frankfurt: European Central Bank, 2002.

Baulig, Christian, and Christiane Oppermann. 75 Fragen zum Euro. München: Knaur, 1998.

Beckmann, Gerhard, and Rainer Schmitz: “Prognose: Harte Zeiten“. Focus. Volume 21. May 18,

2002. p.97

Beetham, Roger. Ed. The Euro Debate, Persuading the People. London: Federal Trust for

Education and Research, 2001.

Browne, Anthony. The Euro- Should Britain Join? Cambridge: Icon Books, 2001.

Büning, S., M. Contoli, K. Hennings, M. Kowalski, and J. Schuster. “Zweite Chance für den

Euro.” Focus. Volume 27. July 1, 2002. p.167-171.

“Canarias y Baleares Reciben Menos Turistas.”  Metro. July 8, 2002. p. 18

“Die Deutschen Autopreise Gehören zu den Höchsten in Europa.” Frankfurter Allgemeine Zeitung.

July 23, 2002. p.9

Duisenberg, Willem. “Opening Address at International Research Forum on Monetary Policy.”

ECB. Online. July 5, 2002.

Frydrych, Marcin. “Milton Friedman: Collapse within 10 years.” EUobserver. Online. July 11,

2002.

“Handel im Überlebenskampf”. Passauer Neue Presse. June 25, 2002. p.11

Hintermeier, Hannes. ˝Fliegenfänger, Harrypotterbereinigt: Der Buchhandel übt den Optimismus.“

Frankfurter Allgemeine Zeitung. July 8, 2002. p. 26

Jungblut, Michael. Wiso Euro Berater: 1999 Fragen & Antworten rund um die neue Währung.

Linz: Wirtschaftsverlag Ueberreuter, 2001.

Karlsen, Peter. “Increased Euro Opposition in the UK.” EUobserver. Online. June 26, 2002.

Kauffmann, Pascal. L’Euro. Paris: Dunod, 1999. 2^nd edition.

Kirk, Lisbeth. “Majority of Germans want D-Mark Back.” EUobserver. Online. May 24, 2002.

“Künasts Teuro-Forum Brummt.” Focus. Online. July 10, 2002.

Legrenzi, Paolo. Con el Euro en el Bolsillo y la Peseta en la Cabeza. Barcelona: Grupe Editorial

Random House, 2002.

Mahony, Honor. “UK Five Economic Tests for Euro Passed.” EUobserver. Online. July 9, 2002.

Mahony, Honor. “2003 Decisive for Euro Opt-out Countries.” EUobserver. Online. June 17, 2002.

Mahony, Honor. “Teuro Conference Sees Only Voluntary Agreements.” EUobserver. Online.

June 17, 2002.

Monthly Bulletin, July 2002. Frankfurt: European Central Bank, 2002.

Picaper, Jean-Paul. « Le Teuro Tétanise les Consommateurs. »  Le Figaro. June 3, 2002. p. III

Pihl, Luise Hemmer. “New Poll: Danes Want the Euro.” EUobserver. Online. June 17, 2002.

Sandri, Piergiorgio M. “La Doble Cara de una Moneda Fuerte.” La Vanguardía. June 27, 2002. p.7

Spiteri, Sharon. “Hitler Image in Anti-euro Campaign Controversial.” EUobserver. Online. July 9,

2002.

“So Machen Sie im Urlaub ein Super Schnäppchen.” Bild der Frau. June 10, 2002.

Sontheimer, Michael. “Großbritanien: Späte Schmerzen.” Der Spiegel. Online. Volume 28. July 8,

2002.

Vieser, Susanne. “Teuro, Teurissimo.” Focus Money. Online. June 17, 2002.

“A Warm Welcome for the Euro.” Spring 2002. Gallup Europe. Online.

http://europa.eu.int/comm/public_opinion/euro_fr.htm

Timetable

Week 1 (May 24– June 1) Frankfurt, Germany	Participate in Europe Forum, Discussion about Europe Visit High School Ziehenschule Give out questionnaires, discussion with students and teachers
Week 2 (June 2-8) Paris, France	Research and Interviews in France
Week 3 (June 8-15) London, Great Britain	Research and Interviews in Great Britain
Week 4 (June 16-23) Frankfurt, Germany	Research Online, in Deutsche Bibliothek, magazines, and newspapers
Week 5 (June 24-30) Passau, Germany	Research and Interviews in another German city
Week 6 (July 1-8) Barcelona, Spain	Research and Interviews in Spain
Week 7 (July 9-16) Frankfurt, Germany	Interviews with employees of bookstore Hugendubel
Week 8 (July 17-24) Frankfurt, Germany	Research of European Central Bank and Deutsche Bundesbank
Week 9 (July 25-Aug 1) Frankfurt, Germany	Analyzing of articles, interviews, and books
Week 10 (Aug 2- 9) Frankfurt, Germany	Writing research report and preparing presentation

Note: Photographs taken over the course of my research will be presented to the UPS campus at the PowerPoint presentation in fall 2002.