WRITTEN QUESTION P-2585/02 by Ilda Figueiredo (GUE/NGL) to the Commission. The inflationary effects of the euro.
Date: 2002-09-10
Institutions: European Parliament, Provisional data
Subjects: consumer price, consumer protection, economic analysis, euro, inflation, price increase, price index, prices policy, third stage of EMU

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As described in the Commission’s Country Strategy Paper (1), Community assistance is focused on:

(cid:1) the support of ongoing Colombian activities in the search for peace;

(cid:1) targeting the roots and causes of the conflict;

(cid:1) providing humanitarian assistance to the victims of the conflict.

As to whether the Union package will be kept separate from Plan Colombia, the Commission would like to
reiterate its position: the Union’s reservations about some aspects of the Plan Colombia are well known to
the Colombian government; furthermore, the Commission does not intend, in the framework of its aid
package, to take part in any initiative with a military dimension.

(1) Available at http://europa.eu.int/comm/external_relations/colombia/csp/index.htm.

(2003/C 268 E/008)

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)?

Are these increases partly caused by the often systematic rounding up of prices and the efforts of

2.
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.

(2003/C 268 E/009)

WRITTEN QUESTION P-2585/02

by Ilda Figueiredo (GUE/NGL) to the Commission

(10 September 2002)

Subject: The inflationary effects of the euro

When the euro came into circulation in January 2002 there were fears of an increase in inflationary
pressures being caused by the unlawful rounding up of prices or covert increases, especially after the
period of dual circulation during the conversion to the euro. The Portuguese press recently revealed that

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many prices, especially in the food, clothing and transport sectors, will show a higher than expected rise
during the year in the euro zone countries. In France, for example, prices will have risen by 10 %,
according to the Union Fédérale des Consommateurs (cid:1) Que Choisir (UFC), and in Holland the Central
Bank stated in August that the transition to the euro had doubled the rate of inflation. In this connection a
number of consumer protection organisations in the European Union are organising a ‘shopping boycott’
for 12 September 2002.

Against this background, can the Commission answer the following questions:

(cid:1) What effect is the entry into circulation of the euro estimated to have had on the price index in each

Member State in the euro zone?

(cid:1) If no such information exists, does the Commission not consider it essential that it should?

What impact does it consider the euro has had on inflation in the euro zone?

Joint answer
to Written Questions E-2451/02 and P-2585/02
given 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.

(2003/C 268 E/010)

WRITTEN QUESTION P-2469/02

by Chris Davies (ELDR) to the Commission

(29 August 2002)

Subject: Kashmir elections

What is the Commission’s view regarding the desirability of independent election observers being sent to
monitor the forthcoming state elections in Indian-controlled Kashmir?

Has the Commission made any representations to the Indian Government about this matter? If so, what
was the response? If not, will it make such representations?