Quarterly note on the development of the use of the euro : second quarter 2000, no 3

This review brings together the results of the various studies on the use of the euro in the Member States participating in economic and monetary union and sets out the results of a quarterly Commission banking survey into the extent to which the euro is used in the accounts and payments of bank customers. The following conclusions can be drawn: - the use of the euro in relations with administrations is continuing to grow in most of the participating countries. For example, more than 9% of VAT returns and corporation tax payments (in value) in France and nearly 11% of customs export declarations in Belgium are now made in euros; - national payments made by firms in euros continue to be very high (nearly 25%) in value terms and have risen to 3.2% in volume. Nearly 23% of international payments are in euros (42% in value). Apart from in Luxembourg, few firms have switched to euro accounting (less than 1% in most Member States), the proportion of euro accounts is not changing and the pace at which new euro accounts are being opened is slackening. Nearly one firm in two claims to have started setting prices in euros and over one in ten to invoice systematically in euros; - payments in euros by individuals dropped in the second quarter from 2.4% to 1.8% in volume and from 8.9% to 6.4% in value. The percentage of euro accounts is still only around 1% and is changing very slowly (only one of every forty new accounts is in euros).