WRITTEN QUESTION E-3906/03 by Roberta Angelilli (UEN) to the Commission. Single currency and cost-of-living increases.
Date: 2003-12-17
Institutions: European Parliament, Provisional data
Subjects: Economic and Monetary Union, European Central Bank, cost of living, euro, euro area, inflation, issuing of currency, paper money, price stability

C 84 E/114

Official Journal of the European Union

EN

3.4.2004

(2004/C 84 E/0150)

WRITTEN QUESTION E-3906/03

by Roberta Angelilli (UEN) to the Commission

(17 December 2003)

Subject: Single currency and cost-of-living increases

While marking a real step forward in the process of further stepping up economic and financial interaction
within the EU, the introduction of the single currency has also led to a significant increase in prices. This
assertion is borne out in Italy by the findings of a large number of surveys conducted by authoritative
statistical institutes (including ISTAT) and by detailed investigations conducted by the Guardia di Finanza.
The same situation is also to be found in all the other EU Member States, although to differing degrees.
With a view to combating the prices increase the Italian Government has taken a number of significant
steps, including the establishment of a fund of EUR 5 million in 2003 and EUR 20 million in 2004 to
finance measures instigated by municipal authorities and chambers of commerce, by common accord, with
a view to promoting and supporting the drawing up of lists of everyday consumer goods and providing
the general public, including via the Internet, with lists of commercial outlets at which all or some of those
goods are available, indicating how attractive they are in terms of price. In his capacity as President-in-
Office of the Ecofin Council, the Italian Finance Minister, Mr Tremonti, has proposed that the current
EUR 1 and EUR 2 coins be replaced with banknotes. The ECB’s response to this proposal, which has the
support of many Member States, including France, has been extremely cautious. The bank has dampened
enthusiasm by pointing out that, even with the best will in the world, new euro banknotes could not be
introduced before the start of the second stage in the euro’s production, in three years time.

Given the above, would the Commission state:

1. whether any Community policies aimed at countering the current inflationary trend, which is more

pronounced than expected, are currently in place?

2. whether there are any examples of good practice in this area?

3. whether any European programmes and funding schemes have been established or are planned with a
view to assisting public institutions, local authorities and consumer associations to combat the price
rises?

4. what it is doing to ensure that the EU public is aware of and understands the present situation?

5. whether, given that various surveys have shown that a large majority of European citizens would
support the replacement of some euro coins with banknotes, it would be willing to argue the case in
front of the ECB and the competent Community institutions?

6. whether a firm date has been set for the issue of EUR 1 and EUR 2 banknotes?

Answer given by Mr Solbes Mira on behalf of the Commission

(30 January 2004)

The Commission would like to recall to mind that the European Central Bank (ECB)

1. and 2.
is
responsible for maintaining price stability in the euro area as a whole, while it is up to the Member States
to address national inflation developments that are deemed to be unwarranted.

The latest data available indicate that consumer price inflation, as measured by the Harmonized Index of
Consumer Prices (HICP), stood at 2,2 % for the euro area as a whole between November 2002 and
November 2003. In Italy, the annual rate of HICP inflation stood at 2,8 % in November 2003 which is the
third highest rate among the Member States. While these figures are somewhat higher than expected a few
months ago, the latest Economic Forecast by the Commission indicates that inflation will fall gradually

3.4.2004

EN

Official Journal of the European Union

C 84 E/115

over the course of 2004. One should also bear in mind the sizable differences experienced between actual
and perceived inflation in several Member States after the euro cash changeover when addressing the issue
of inflation and possible effects from this changeover.

The Commission, within the terms indicated in the EC Treaty (Article 153), contributes to protecting
3.
the economic interests of consumers and to promoting the effective enforcement of consumer protection
rules. However, the measures undertaken with these aims, though they may have an impact on the prices
of goods and services, cannot be considered from the point of view of the maintaining of price stability,
which is a task of the ECB, as mentioned above.

Referring directly to the introduction of the euro notes and coins, the Commission promoted a number of
initiatives aimed at preparing consumers to better manage the changeover to the new currency. Special
attention was paid to disfavoured people (the elderly, the disabled, people living in peripheral regions, etc.).
Within the programme ‘Euro Made Easy’, specific schemes were funded with a view to assisting public
authorities and consumer associations to anticipate possible problems linked with the introduction of the
new notes and coins. These initiatives were helpful for the success of the changeover to the new currency.

Both the Commission and the ECB review the current state of the euro area economy on a
4.
permanent basis. In addition to standard surveys of the real and nominal aspects of the economy, these
also include more in-depth studies on ad-hoc topics to highlight current fields of special interest, such as
euro area inflation and inflation perceptions.

5.
The latest Eurobarometer survey (published on 15 December 2003) indicates that only a minority
(31 %) of euro area citizens is in favour of a EUR 1 banknote. Support for such a banknote mainly
originates from two Member States, where a majority (70 % in Greece, 76 % in Italy), would welcome the
introduction of a EUR 1 banknote. However, in the 10 other euro-area Member States, there is a clear
majority (exceeding 60 % in all cases and even reaching almost 90 % in a number of Member States)
against the introduction of such an additional banknote.

In accordance with the EC Treaty, any decision on banknote denominations would have to be taken
6.
by the European Central Bank (ECB) which has the exclusive right to authorise the issue of euro banknotes.
The ECB has decided to reconsider the issuance of very low-denomination banknotes in autumn 2004
when more experience on the use of euro banknotes and coins inside and also outside the euro area is
available. If a very low-denomination banknote were to be issued, it would be part of the second series of
euro banknotes, to be introduced towards the end of this decade.

(2004/C 84 E/0151)

WRITTEN QUESTION P-3909/03

by Francesco Fiori (PPE-DE) to the Commission

(10 December 2003)

Subject: Framework directive

In the light of Article 7 and recitals 36 and 37 of the framework directive (2002/21/EC (1)), what action has
been taken to guarantee that the activities of such bodies are transparent for the purposes of interaction
with industry and clearly defining who is responsible for harmonisation?

The new framework gives the ERG a purely consultative role, while the crucial role of ensuring that the
framework is implemented in a consistent manner should be retained by the Commission, on the basis of
the powers conferred on it by the Treaty. What is the Commission doing within the ERG framework to
make sure that it retains its proper role of ensuring that the new framework is applied in a consistent
manner, in accordance with the objectives laid down by Community law?

(1) OJ L 108, 24.4.2002, p. 33.