92002E2451

WRITTEN QUESTION E-2451/02

by Erik Meijer (GUE/NGL) to the Commission

(29 August 2002)

Subject: Measures to tackle present and future increases in consumer prices as a result of the introduction of the euro

1. Does the Commission recognise that the views of 83 % of the European population who, according to the latest Eurobarometer opinion poll, believe that the introduction of the euro has led to sharp price increases for the consumer, are borne out by the findings since announced by national governments and national bank governors and that public opinion on this issue is more well-founded than previously expected by the Commission when it answered my questions E-4066/00(1) and E-1193/02(2)?

2. Are these increases partly caused by the often systematic rounding up of prices and the efforts of certain sectors to obtain extra revenue?

3. Can the Commission confirm that although the governments and bank governors of a number of countries have indicated their concern about price increases, no measures have been taken anywhere to freeze or reduce prices?

4. What is the reason for the passive attitude described in paragraph 3? Is the Commission encouraging the Member States to take price measures as a means of subsequently rectifying unforeseen negative effects or is it is still maintaining the preference expressed in its answer to question E-1193/02 for unrestricted interaction between supply and demand?

5. Has the Commission now devised a plan on how a similar wave of extra price increases can be avoided if any existing or future EU member states join the eurozone? If so, what measures is it envisaging? If not, what impact does it anticipate that this passive attitude will have on the referendums that would be held on their joining?

Source:De Volkskrant, 13 August 2002.

(1) OJ C 187 E, 3.7.2001, p. 125.

(2) See page 1.

Joint answerto Written Questions E-2451/02 and P-2585/02given by Mr Solbes Mira on behalf of the Commission

(24 October 2002)

According to an analysis carried out by Eurostat and published in July 2002, consumer prices in the euro zone, as measured by the harmonised consumer price index (HCPI), rose by 1,4 % between the last six months of 2001 and the first six months of 2002. 1,2 % of this increase is attributable to historical inflation trends and specific factors not directly linked to the introduction of the euro (weather conditions, indirect taxes, etc.).

The inflationary impact of the introduction of euro notes and coins is thus limited (not more than 0,2 %), even it is slightly higher than in previous estimates (not more that 0,16 %). In most Member States, similar estimates suggesting generally limited effects have been made by national statistical institutions and central banks.

Nevertheless, abnormal price rises have been observed in some sectors (restaurants and cafés, health services, small traders, etc.). These increases combined with a tendency to round prices up on certain everyday consumer products might have contributed to the public's perception of a higher inflationary effect than that indicated by official indices for all consumer goods and services.

Overall, inflation has been falling since the start of 2002.