This website was active from February 2006 until June 2007.
 

FAQ - Introduction of the euro in Slovenia

What were the key dates of the euro introduction plan in Slovenia?

28 June 2004 - ERM II entry
On 28 June 2004 Slovenia entered the Exchange Rate Mechanism ERM II. The aim of ERM II entry was to ensure the stability of the SIT/EUR exchange rate in agreement with the competent European institutions.

1 March 2006 - Beginning of the dual display of prices of goods and services
Prices were designated in tolars as well as euros in line with the act on informative double pricing. In this way consumers were getting used to prices in euros. The informative double price tags, which were also designed to help prevent unjustified price hikes and, consequently, inflation, were mandatory for 16 months, that is until the end of June 2007.

15 and 16 June 2006 - Start of pre-entry period
After the European Commission and European Central Bank published their euro convergence reports for Slovenia in May 2006, the EU summit voted on admitting Slovenia to the euro area on 16 June 2006.

1 January 2007 - Introduction of the euro
The date of the introduction of the euro in Slovenia. At midnight all money deposits, including the money in transaction accounts, were automatically converted into euros.

1 January 2007 - 14 January 2007 - Dual circulation period
The euro became the Slovenian currency on 1 January 2007, although payments in tolar banknotes and coins were still possible until 14 January 2007.

1 January 2007 - 1 March 2007 - Cash changeover at banks without commission
During this period all commercial banks exchanged tolar banknotes and coins for euros without charging any commission or fees. After 1 March 2007 it is still possible to exchange tolar banknotes at the Bank of Slovenia without a time limit and free of charge, while the exchange of tolar coins will be possible only until the end of 2016.

Source: Government Communication Office

What kind of positive effects are expected for Slovenia, the people and economy?

Apart from the very straight-forward economic benefits of joining the world's second most important currency area and the elimination of exchange-rate risk with our main trading partners, euro adoption represents a strong signal of the maturity that the Slovene economy has achieved. It should further enhance the investment opportunities in Slovenia and better promote our country as a place to do business. At the same time, Slovene consumers will more easily benefit from the advantages of the EU internal market.

The adoption of the euro brings many advantages for citizens and enterprises. The euro enables easier travel to other countries that use the euro, as money does not have to be exchanged at every border crossing. Furthermore, it is easier to compare prices at home and in the euro-area countries, as all prices are expressed in euro and no longer in different currencies. Similarly, travel to countries outside the euro area is easier, as the euro is an international currency.

One of the future advantages of adopting the euro in Slovenia is the abolishment of fluctuation in the exchange rate in the member states using the euro, and elimination of related uncertainty, risks and costs. This creates a more stable environment for importing and exporting companies by eliminating the risk associated with changes in the exchange rate. Furthermore, various transaction costs associated with currency exchange are eliminated. This lowers the costs and ensures greater stability of trade, and consequently greater trade and capital flows with the EU and faster integration into the EU single market.

Greater transparency of prices brings about increased competition, which leads to lower prices. The euro brings advantages to savers and borrowers as it opens up new saving opportunities and ensures easier borrowing in a larger and more liquid financial market. Another advantage of the adoption of the euro in Slovenia is related to the general economic advantages, so we can consequently expect lower inflation and lower interest rates, which will have a positive effect on investments and economic growth.

Source: Ministry of Finance

What was the selection process of choosing the Slovenian side of euro coins?

The first stage of the selection process started in April 2004, involving preliminary discussions with numismatists, designers and experts. The general public was also invited through the mass media to participate in a public tender concerning proposals of motifs (132 tenderers proposed 699 motifs). A special expert commission (9 different individual experts and members of different institutions, including the Ministry of Finance and the Bank of Slovenia) dealt with the proposals and the process. The second stage of selection started when the Government of the Republic of Slovenia confirmed the commission's decision that invitations would be addressed to some prominent designers for the production of designs.

The commission invited five well-known Slovene designers. A special jury of reputable Slovene artists, designers, professors and connoisseurs of Slovene cultural heritage was appointed to review and assess the designs submitted for the Slovene euro coins. The commission of the Bank of Slovenia and Ministry of Finance unanimously agreed with the proposed selected designs prepared by Mr Miljenko Licul, along with Ms Maja Licul and Mr Janez Boljka. The Government of the Republic of Slovenia gave their consent and adopted the decision on 28 July 2005 to submit the selected design proposals for the national side of the Slovene euro coins to ECOFIN (Economic and Financial Committee) - Coins Sub- Committee, which acknowledged the compliance of the Slovene design proposals with European legislation on 5 October 2005.

Source: Ministry of Finance

What is the role of the Bank of Slovenia after the introduction of the euro?

By joining the EU, the Bank of Slovenia became part of the European System of Central Banks (ESCB) consisting of the national central banks of the EU member states and the European Central Bank (ECB). As not all member states have adopted the euro, the central banks of those EU member states that have adopted the euro and the ECB are referred to as the Eurosystem. Since 1 January 1999 the Eurosystem has been responsible for determining and implementing the single monetary policy for the euro area. The ESCB on the other hand, as mentioned above, consists of the ECB and national central banks of all EU member states. National central banks of those EU member states that have not adopted the euro are part of the ESCB and have a special status within the system. They can pursue their own monetary policy and do not participate in the process of decision-making and implementation of the single monetary policy. With Slovenia's entry into the EU, the Bank of Slovenia became part of the ESCB, but not of the Eurosystem.

In the period between EU accession and adoption of the euro the Bank of Slovenia was still responsible for the implementation of monetary policy. Upon the adoption of the euro the responsibility for implementing the monetary policy in Slovenia are transferred to the Eurosystem, which the Bank of Slovenia joined.

The Bank of Slovenia also participates in the ECB decision-making bodies. Upon Slovenia joining the EU, the Governor of the Bank of Slovenia became a member of the General Council of the ECB and after adoption of euro he became a member of the Governing Council of the ECB. The national central banks are an integral part of the ESCB and shall act in accordance with the guidelines and instructions of the ECB. The functioning of the Eurosystem is such that decisions are reached by the ECB, i.e., in a centralised manner, and implemented via national central banks, i.e., in a decentralised manner.

Source: Bank of Slovenia

How can we prevent the unjustified increases of prices?

In order to monitor closely the price developments before and after euro adoption, the Statistical Office, the Ministry of Economy and the Consumer Protection Association signed a detailed agreement on the modalities of the 'price-watch'. In line with the agreement, the Statistical office was in its monthly reports publishing a special section devoted to all goods and services that may exceed a justifiable price increase, and also reported on specific price developments.

Parallel price-watches were also organised by the Consumer Protection Association. The Chamber of Commerce and Industry (GZS) and Chamber of Craft Industries (OZS) urged Slovenian companies to sign up to a euro price code. Companies adhering to the code pledged not to raise their prices as part of the changeover.

What effigies are found on the Slovenian national sides of the euro coins?

Each member state of the euro area issues euro coins featuring the national side. Slovenia selected the following designs for its euro coins:

2 euro
France Prešeren and the first line of the 7th stanza of Zdravljica (Slovenian national anthem)

1 euro
Primož Trubar and the inscription "Stati inu obstati" (to stand and withstand)

50 cents
Triglav, constellation of Cancer (Slovenia achieved its independence under the zodiac sign Cancer) and inscription "Oj Triglav moj dom" (O Triglav, my home)

20 cents
A pair of Lipizzaner horses with the inscription "Lipicanec" (Lipizzaner)

10 cents
Plečnik's vision of the Slovenian parliament building with the inscription "Katedrala svobode" (Cathedral of freedom)

5 cents
Grohar's painting A Sower sowing stars representing member states of EU

2 cents
The Prince's stone

1 cent
A stork, a motif taken from the current 20 SIT coin and being a symbol of birth and long life

Did banks charged any additional fees or commissions for conversion of funds on bank accounts?

No, tolar account balances were converted into euros free of charge. Banks and savings banks also exchanged the tolar banknotes and coins at the conversion rate into euro banknotes and coins free of charge until the 60th day inclusive after the adoption of the euro (until 1 March 2007).

Banks and savings banks had the right to demand that exchanges of amounts exceeding EUR 1,500 was notified one working day prior to the planned exchange. Without prior notification of the exchange, banks and savings banks were able to charge exchange costs for amounts exceeding EUR 1,500. The cash changeover procedures were specified in detail in the Euro adoption act regulating the adoption of the euro.

What is the value of particular euro banknotes and coins?

Irrevocably set conversion rate between the tolar and the euro is: 1 EUR = 239,640 SIT.

Consequently:
500 EUR banknotes are worth 119.820 SIT,
200 EUR banknotes are worth 47.928 SIT,
100 EUR banknotes are worth 23.964 SIT,
50 EUR banknotes are worth 11.982 SIT,
20 EUR banknotes are worth 4.792,8 SIT,
10 EUR banknotes are worth 2.396,4 SIT,
5 EUR banknotes are worth 1.198,2 SIT,
2 EUR coins are worth 279,28 SIT,
1 EUR coins are worth 239,64 SIT,
50 cent coins are worth 119,82 SIT,
20 cent coins are worth 47,93 SIT,
10 cent coins are worth 23,96 SIT,
5 cent coins are worth 11,98 SIT,
2 cent coins are worth 4,79 and
1 cent coins are worth 2,40 SIT.