Retailers still cashing in on euro, watchdogs claim

Date: 31/01/02

UNSCRUPULOUS retailers are cashing in on the euro by increasing prices of everything from a glass of beer to a bottle of tomato sauce, say EU-wide consumer groups.

Fresh evidence has come to light in the past few days of price hikes throughout the 12-nation eurozone, says the European Consumers' Organisation (BEUC).

Examples of increases include:

• Cinema seats in Belgium, rising from €4.96 to €5;
• A baguette in Paris cost €0.90 this month, up from €0.84 in December;
• A bottle of tomato sauce in Milan increased to €1.00 from €0.72;
• Room prices have risen by 1 at a one-star hotel in France;
• A beer at a café counter in Toulouse rose from €2.44 to €2.50
• A TV listings journal in Brussels, up from €1.49 to €1.60.

Items such as video rentals in Paris, kebabs in Amsterdam and restaurant meals in Spanish tourist resorts have all become more expensive over the past month.

Spanish petrol stations and Dutch hairdressers have also been accused of increasing their prices.

Caroline Hayat, spokeswoman for Brussels-based BEUC, the umbrella body for national consumer groups in the 12 eurozone nations, said: 'Many of our members are still receiving complaints from the public about price increases. Of course, consumers understandably believe these to be caused by the changeover to the euro.

'Personally, I have no doubt that some unscrupulous traders throughout the eurozone have seized the opportunity to increase prices.

'This is quite callous and unacceptable.'

Eurozone government ministers and central bankers insist there is no connection between price rises and the launch of euro notes and coins.

But BEUC and other consumer groups dispute that claim.

The Dutch consumer group Consumentenbond, for instance, said it had received a large number of complaints about bars, restaurants and cafes. Some of the increases had been as high as 10.

The Cologne-based Institute for Consumer Research checked prices of 1,200 goods in 100 shops in Cologne and Berlin and found that 27 of items had increased in price since 1 January.

'We don't want people to think there is a large-scale conspiracy to defraud them but at the same time, through this process, people will become more aware of prices,' said Carmel Foley, director of consumer affairs. Last week, its phone lines were jammed for two days by consumers calling to report discrepancies.

In response to the level of concern from the public, the institute is extending its pricing survey until the end of this week.

In Ireland, where even some doctors are said to have increased their fees, Dermott Jewell, of the Consumers' Association of Ireland, said the biggest rises have been in alcohol prices.

'Many of the Dublin pubs that we have surveyed have shown significant price increases,' he said.

Meanwhile, almost one month after the introduction of the new currency, the vast majority of cash transactions - over 95 - in the eurozone are being conducted in euros, said Pedro Solbes, the EU's economic and monetary affairs commissioner.

Fears that counterfeiters would take advantage of confusion over the new currency appear, so far, to have been groundless, says the Frankfurt-based European Central Bank.

'So far, only a few crude fakes have been put into circulation and were detected without difficulty,' said a spokesman.

Unscrupulous retailers are cashing in on the euro by increasing prices throughout the 12-nation eurozone, according to the European Consumers' Organisation.