EN Official Journal of the European Union CE 84/241

(2004/C 84 E/0285)

WRITTEN QUESTION E-3451/03

by Ioannis Marinos (PPE-DE) to the Council

(20 November 2003)

Subject: Eurobarometer findings regarding the Euro and inflation

‘Eurobarometer’ 58 covering the period October-November 2002 and published in May 2003 contains a number of very interesting findings regarding the acceptance of the euro by Eurozone inhabitants. Page B80 of the report contains the statistical findings from answers to the question as to whether prices in euro have been rounded up or down, to which 77 % of Eurozone citizens replied that they had been rounded up, while in certain European Union Member States the percentage is even higher, for example in Greece (88 %), Spain (89 %) and the Netherlands (91 %). In reply to the question ‘Do you feel personally attached to the euro?’ 56 % of those questioned in the Eurozone replied that they felt a small degree of attachment to the single currency (34 %) or none at all (22 %), while 61 % of those questioned felt a fairly large (36 %) or very large (25 %) degree of attachment compared with their old national currencies (p. B84 of the report), the total percentage being even higher in Greece (67 %) and Italy (71 %) (p. B83).

Is the Council concerned at these Eurobarometer findings which confirm the suspicion that the introduction of the new currency has led not only to prices being rounded upwards but also provided a pretext for unjustifiably high price increases with foreseeable consequences regarding consumer income, particularly among the lowest paid in the Eurozone (for example the Greeks). Has the Council made recommendations to the governments of those countries in which inflation has noticeably increased following the introduction of the new currency, provoking consumer dissatisfaction and undermining in psychological terms acceptance of not only the euro but, more widely, the European Union, and this in the run-up to the forthcoming enlargement and the European elections of 2004? What replies were given by the governments concerned?

Reply

(11 March 2004)

Neither the Autumn 2003 Economic Forecasts of the Commission, nor the Annual Report of the ECB for 2002 confirm that the changeover to the Euro has led to high price inflation for consumers in the Euro area.

However, the Autumn 2003 Economic Forecasts confirm that inflation differentials among Euro Member States differ widely and that they are forecast to continue to do so in 2004.

In the three largest economies of the Euro area the inflation rate for 2004 is forecast to range from 1,6 % in Germany to 1,8 % in France and 2,3 % in Italy. Forecasted 2004 inflation rates in other Member States are higher: 2,8 % in Spain and 3,7 % in Greece for example, partly because of stronger current and past growth rates.

Average consumer price inflation was for the Euro area in 2000 2,1 %, 2,4 % in 2001 and 2,2 % in 2002 (see table 6 on p. 39 of the ECB Annual Report for 2002).

However, the ECB, for the reasons stated in its report and particularly on p. 42 and following, denies also that large consumer price increases have in fact taken place.

Therefore, the Council cannot share the view of the Honourable Parliamentarian that the Euro switchover has led to high price inflation for consumers, particularly in Greece.