Principles of the changeover to the euro

Updated: 08.07.2010

  • Estonia is adopting the euro on 1 January 2011 (€-Day)

  • After accession to the European Union on 1 May 2004, Estonia set the goal to adopt euro as soon as we are able to meet all the necessary requirements. The likelihood of Estonia getting an invitation to join the euro area is very high as, according to the estimations of the European Commission and European Central Bank, Estonia has met the accession criteria. Preparations for the introduction of the euro must be launched immediately, because this is the only way to ensure fluent transition to the euro.

  • Presumably, Estonian kroons will be converted into euros at the official exchange rate of Eesti Pank, 15.6466.
  • On the transition day, or €-Day, the euro will be introduced immediately, i.e., without any transitional period, as account currency in accounting and contractual relations.
  • Starting from the €-Day, a two-week dual cash circulation period will begin during which euro and kroon cash will be treated as equal legal tenders. In stores, payment is allowed in kroons and euros, but change must usually be given in euros. After the period of dual circulation, i.e., from 15 January, the euro will be the only legal tender.
  • Kroons can be changed into euros at the central rate of the Bank of Estonia and without a service fee in all bank offices, which provide cash services, for six months from the € day. A limited network of bank offices will continue to change kroons for another six months, i.e., until the end of 2011. Eesti Pank will exchange kroons into euros for an unlimited period of time and in unlimited amounts.
  • Although the euro is not the legal tender in Estonia before € day, banks will offer private individuals an opportunity to exchange kroons into euros at the central exchange rate and without a service fee one month before the € Day, i.e., in December 2010.
  • From 1 July 2010, prices must be displayed in kroons and in euros and the conversion of prices from one currency to another must be based on the official exchange rate of Eesti Pank.
  • In order to set a good example to the private sector, the kroon rates of taxes, state fees, environmental charges and benefits specified by laws are rounded into euros in a more favourable direction for the public.
  • Expenses related to the changeover are normally borne by the market participants themselves.