From the 1st of January 2002, the Euro will be the only currency of the European Union. All the everyday items that we buy and the transactions that we currently do in Pesetas must start to be done in Euros. These normal operations include for example all purchases, sales, bills and accounts, must all be carried out only in Euros.

VALUE 1 Euro is the equivalent of 166.386 pesetas. In order to get ourselves familiar with the new currency 500 Pesetas are 3 Euros and 1000 Pesetas are equal to 6 Euros.

TIME LIMIT. Until the 28th February, there will be a period of coexistence of Pesetas and Euros, when it will be possible to still use both coins and peseta notes. In other words you will be able to pay a bill in either currency (Euros and Pesetas).

From the 1st March until the 30th of June you will able to change Pesetas for Euros in Banks and Savings Banks.

From the 1st July you will only be able to change pesetas to Euros in Bank of Spain.

TAX DECLARATIONS. From the 1st January 2002, all tax declarations must be in Euros. Any tax declaration submitted in pesetas will not be accepted. This is something important that companies must bear in mind.

ACCOUNTS. From the 1st January 2002, all accountancy annotations and registers must be in Euros. From this date all bills must be made out in Euros also. Companies must make the necessary adaptations in their accounting programs, invoicing, payslips etc… to the new currency.

CHANGES WHEN MAKING PURCHASES. From the 1st of January when we buy something any returned change will be in Euros.

BANKS. The 1st January is a Tuesday. As it is a bank holiday all banks will be closed but the next day you will be able to go to any banking establishment, even though you may not be a client of that bank, to change their money free of charge. The exchange is free, therefore you will not be asked to produce any personal identification when you carry out the transaction. The only limits are those derived from the law which prevents the laundering of money 'Ley de Prevención de Blanqueo de Capitales', which obliges those who are involved in transactions of more than 2.5 million Pesetas to identify themselves. By the same token, cheques over 500.000 Pesetas (3.005 Euros) must be made out to a person and not just 'the bearer'.

At first, the money exchange will be free. However, in countries such as Germany, most banks will charge people who are not clients of the banking establishment in question. There will also be charges in Holland and Austria.

Cash Dispensers From midnight on the 1st January 85% of the 44.000 cash dispensers will only give out Euros. There will be 10, 20, and 50 Euro notes. During the first few days of 2002 mainly 10 and 20 Euro notes will be dispatched. The note with the highest value obtained from a cash dispenser will be the 50 Euro note.

From the 15th December of this year, anyone will be able to obtain from any bank a set of coins and notes to the value to 12.02 Euros (2000 Pesetas) without paying any commission, however until the first of January they will not be able to be used to pay for things.

During the first two weeks of January, banks will have longer opening hours.

From the first of January, all cheques and bank transfers must be in Euros.

On the 31st December 2001, banks will automatically convert to Euros all bank accounts according to the fixed rate. After the 31st December 2001 it will be impossible to maintain a bank account in pesetas.

Rounding Off. You must be careful with the rounding off of prices to a higher price in order to avoid people taking advantage.

Contracts and Salaries. They will be stipulated in Euros from the 1 January, although they have been signed before 2002. Wages and salaries will be paid in Euros as from January.

Water and Electricity Bills. The European Commission has recommended that all water, electricity and insurance companies etc, are issued in Euros from September of 2001 onwards, in order to familiarise people with the new currency.

Counterfeit Notes. The identification details of Euro notes is a secret so as to avoid possible forgeries. However we do know that the notes will have fluorescent fibres and watermarks etc… to make them easily recognisable because it would be preferable to forge certain notes, for example 500 Euros. It will be possible to use the Euro in non European Union countries.

Design of the notes and coins. There will be one common design of notes for all countries. The bridges and roads that symbolize the European Union have been chosen and each image corresponds to a certain era. However the coins of each country will have their own national motif. For example the coins in Spain will have on the front the Cathedral of Santiago de Compostela, Cervantes or King Juan Carlos.

Countries which will not convert to Euros. The countries which still have not decided to convert to Euros are Denmark, United Kingdom, and Sweden, although the possibility of them changing to Euros is the future is not ruled out.