Keeping fear in check
The EU Commissioner for Economics and Monetary Affairs, Joaquin Almunia, has told Poland and the other new member states that they must actively combat the perception that the single currency leads to higher inflation.
Speaking at a conference on the euro and the effects on consumers, Almunia said public opinion in some countries links the advent of the euro with higher prices.
"We must do everything we can to combat the false perception that the euro means higher prices." He mentioned a report by EU statistical agency Eurostat, which showed that the euro's introduction had inflated prices by 0.09 percent to 0.28 percent.
Poland is hoping to be able to join the single currency area and adopt the euro before 2010.
Almunia called on governments to invest heavily in advertising campaigns and information leaflets to fight such misperceptions. He also suggested introducing codes of conduct between consumer protection associations and retailers to ensure price stability.
He added that Europe still hadn't reaped the full benefit of the single currency because of the lack of price convergence across borders. He said the euro allowed consumers to easily compare prices at home and abroad, and ultimately is expected to "induce competitive pressures and thus ultimately push prices down." (Dow Jones Newswires)
Speaking at a conference on the euro and the effects on consumers, Almunia said public opinion in some countries links the advent of the euro with higher prices.
"We must do everything we can to combat the false perception that the euro means higher prices." He mentioned a report by EU statistical agency Eurostat, which showed that the euro's introduction had inflated prices by 0.09 percent to 0.28 percent.
Poland is hoping to be able to join the single currency area and adopt the euro before 2010.
Almunia called on governments to invest heavily in advertising campaigns and information leaflets to fight such misperceptions. He also suggested introducing codes of conduct between consumer protection associations and retailers to ensure price stability.
He added that Europe still hadn't reaped the full benefit of the single currency because of the lack of price convergence across borders. He said the euro allowed consumers to easily compare prices at home and abroad, and ultimately is expected to "induce competitive pressures and thus ultimately push prices down." (Dow Jones Newswires)
