Sarris urges public not to link price hikes to euro

FINANCE Minister Michalis Sarris said yesterday he hoped people would not associate recent price hikes caused by external factors to the adoption of the euro on January 1.

Updating the press yesterday on progress in the euro campaign, Sarris said acceptance of the single currency was growing among Cypriots, who have been the most reluctant of all EU citizens to see the introduction of the euro.

The majority of Cypriots fear profiteering as a result of euro adoption and the government has been at pains to try and reassure people that unjustified increases would be investigated and the culprits punished.

Sarris said that with only two months to go, the number of people accepting the euro was growing, and that by the time it was introduced most people would be ready.

He said it was somewhat unfortunate that the island’s accession to the eurozone coincided with major hikes in the global price of oil and cereals, which would be reflected in a higher inflation rate in 2008.

“But we believe the connection between our integration in the eurozone with this phenomenon will not be so big that it will cause concern,” he said.

The Minister also said that while some companies have increased their prices prior to euro integration, the vast majority had not. He said the government was encouraging as many businesses as possible to subscribe to the Fair Pricing Code.

To further contribute to this, the Ministry had extended the deadline for firms to sign up to the code until the end of November because demand was so high, Sarris said.

Sarris said the campaign was going well and that the special Eurobus that is visiting 290 rural villages to inform pensioners and others living in the countryside, was going well.

School pupils and soldiers were also being taken care of under the campaign, and so were people with special needs, Sarris said. Next week at a ceremony at the Blind School, the Ministry will present a special booklet about the euro written in Braille for those with impaired sight
“With use and familiarisation, we will be able to face any initial difficulties effectively,” he said.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.