WRITTEN QUESTION E-0923/01

by Erik Meijer (GUE/NGL) to the Commission

(28 March 2001)

Subject: Public authorities' use of incorrect conversion tables will encourage inflation when the euro is introduced

1. Is the Commission aware that it has been the Dutch government's intention since February 2000 to increase fines (which have remained at the same level since 1981) by 10,19 % with effect from 2000 and that this increase is to be simplified by replacing every two guilders - together worth 0,90756 - by one whole euro?

2. Does the Commission know of any other examples of authorities of, or within, a Member State intending to use the introduction of the euro on 1 January 2002 to increase their tariffs or fines by using a conversion table different to the one officially fixed in late 1998 for the comparative values of existing currencies and the euro?

3. Does the Commission agree that the use by dealers of the euro logo agreement, which it called for in its reply to Question E-4066/00(1), could be at risk if governments give the impression that they want to increase their revenue when the euro is introduced?

4. Is the Commission prepared to help ensure that any price increases deemed desirable by governments are only implemented at a time when prices before and after the increase are expressed in the same currency, so that they are apparent to everyone as a decision taken consciously and completely independently of the introduction of a new unit of currency?

5. What other steps is the Commission planning to take to prevent government policy contributing in any way to the massive inflation which is feared will occur on 1 January 2002, and which the Commission explicitly denied would happen in its answer to Question E-4066/00?

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

Answer given by Mr Solbes Mira on behalf of the Commission

(14 June 2001)

1. The possibility of increasing fines in the Netherlands through the changeover to the euro, after initial consideration, has been discarded by the Dutch authorities. The conversion will leave values unaltered or marginally modify them, in the conversion process, strictly to the advantage of the public.

2. and 3. Most public authorities of euro area Member States commit themselves to setting a positive example by organising the changeover of their tariffs in a neutral manner, requested among others by European Federations in the agreement on good practices signed on 2 April 2001. Wherever the exact value in conversion cannot be maintained the conversion process will always be to the advantage of the public.

4. Price increase which normally take place at the beginning of the year will be introduced at the usual times. The introduction of the euro will not disrupt what are usual practices and deadlines.

5. The Commission has proposed, in its Communication of 3 April 2001(1), several lines of action discussed and pursued with euro area Member States and European trade federations. These include: encouraging the adoption of dual pricing, increasing the frequency of price surveys and checks in late 2001 and early 2002, creating a commitment to overall stability (pursued among others through the agreement of 2 April 2001), building on the example set by the public administrations and organising specific price surveys to monitor trends in prices.

(1) COM(2001) 190 final.