EN Official Journal of the European Union CE 70/82

(2004/C 70 E/084)

WRITTEN QUESTION E-2289/03

by Ioannis Marínos (PPE-DE) to the Commission

(11 July 2003)

Subject: Wage and pension levels in Greece

There have been particularly vehement protests in Greece about the relatively high rate of price increases in Greece compared to the rest of the EU, in conjunction with the low level of wages and, particularly, of most pensions. According to recent Greek press reports, Athens has been ranked 71st worldwide as regards the cost of living, moving up from 111 th place in the same survey announced in 2002 (covering 2001). Public opinion surveys in Greece show that citizens believe that the establishment of the euro (and the rounding upwards of prices that followed) together with inadequate market inspections are responsible for the rise in inflation.

Will the Commission provide detailed comparative data concerning the level of basic wages and the minimum pensions and the cost of living in the 15 Member States of the European Union? What impact does it believe the increase in the prices in all the eurozone countries and the fact that psychological acceptance of the euro is diminishing are having on the image of the single European currency? Has it recommended specific measures to keep prices down in the eurozone countries?

Answer given by Mr Solbes Mira on behalf of the Commission

(12 September 2003)

The source of the particular cost of living comparison the Honourable Member referred to in his question is not clear and hence the Commission cannot comment on it. Many such comparisons are produced by various institutions, for various purposes and often reported in the press. They differ with respect to the statistical methods used and in particular the targeted population groups, the baskets of goods and services covered and the internal weightings applied to these baskets.

Concerning the question of the supply of comparative data on the level of minimum wages, minimum pensions and measures of the cost of living, the Commission would like to pont out that such information is already publicly provided by its services. For data on minimum wages and cost of living comparisons the source is Eurostat (see for example Eurostat's Statistics in Focus Theme 3: 10/2003 and Theme 2: 56/2002), while data on minimum pensions were compiled in table 1 of the Joint Report by the Commission and the Council on Adequate and Sustainable Pensions adopted on 6/7 March 2003 by the Employment and Social Affairs and Ecofin Councils (document number 6527/2/03 rev.2). The table is based on the Mutual Information System on Social Protection in the Member States (MISSOC) and the Directorate-General for Employment and Social Affairs (EEA), and contributions from the Member States.

As regards inflation in consumer prices, the annual average rate of change in the euro area for 2002 over 2001 was 2,3 %, the same as in 2001, as measured by the Harmonized Index of Consumer Prices (HICP). In its latest study on the impact of the changeover to the euro, Eurostat estimated that the contribution of the euro changeover to the 2,3 % total most likely fell within the range of 0,12 % to 0,29 % percentage points in the euro area as a whole (see the Annex to Eurostat News Release No 69/2003, 18 June 2003). This analysis confirmed that, although consumers experienced significant price increases for some types of goods and services, the changeover effect could not be seen as one of the main factors driving inflation in 2002. It is possible, however, that such significant price increases in some sectors (mostly small services and some frequently bought items) may help to explain the perception of higher than actual inflation in some Member States. In this context, it is worth bearing in mind that any upward effect on overall inflation rates due to the euro changeover can be expected to be of temporary nature. Indeed, the Eurostat study mentioned above could not find any evidence of an effect of the changeover on the inflation rates measured so far in 2003. The medium to long-term impact of the single currency is to increase competition across the euro area and hence lead to lower consumer prices.

Finally, regarding the acceptance of the euro, the Commission notes that according to the latest Eurobarometer (spring 2003), 75 % of the respondents in the euro area expressed support to the single currency. This figure increased by 4 percentage points compared to the Autumn 2002 survey and is back at the level reached right after the introduction of euro notes and coins on 1 January 2002, which was also the highest level since 1994.