WRITTEN QUESTION E-1915/02

by Dorette Corbey (PSE) to the Council

(2 July 2002)

Subject: Introduction of the euro

According to Eurobarometer 56, close to half the EU population thinks that the euro is pushing up consumer goods prices. According to a survey by the Netherlands' Consumers' Association, compact disc prices rose by 7,2 % between March 2001 and March 2002. In the same period, set-meal prices in restaurants increased by 6,2 %, on average, and by as much as 8,8 % in cafes. The euro was supposed to result in greater transparency and an end to exchange costs and thus lower prices. When the summer holidays came, people were supposed to discover the benefits of the euro abroad, since money no longer needs to be changed in the euro zone. Now that the introduction of the euro has resulted in large price rises, those benefits have vanished. At the same time, some old banknotes have not been returned, representing a profit for national banks and hence for national exchequers.

1. Does the Council acknowledge that it has a political responsibility to deliver on the pledge made to consumers and make sure that the euro finally benefits them?

2. What scope does the Council see to flesh out that political responsibility?

Reply

(5 November 2002)

Neither the Commission nor the ECB has reported a substantial increase in inflation further to the introduction of euro notes and coins as from 1st January 2002. The Commission published in March 2002 the Review of the introduction of euro notes and coins, and the ECB published in April 2002 the Evaluation of the 2002 cash changeover.

Both institutions acknowledge, however, that inflation has been above 2 % in the euro area since January 2002 but relate this phenomenon to exceptional factors, such as persistent unexpectedly high energy prices and temporary price increases for food, resulting from the BSE and other animal sickness-related food crisis and from bad weather conditions.

The Council, furthermore, draws the attention of the Honourable Parliamentarian to the important longer term benefits of the introduction of the euro.