Ahern warns against price rises during euro changeover

The Taoiseach today warned against inflationary price increases during the conversion to the euro and urged businesses to be ready for the move next January.

The euro had brought us major benefits, most notably lower interest rates Minister for Finance Mr McCreevy

He said the euro conversion is a once-off imperative for Ireland and the EU that must not be viewed as a "bonanza" and "exploited for unjustified gain in terms of increases in consumer prices".

Speaking with the Taoiseach at the Programme for Prosperity and Fairness Plenary Meeting at Dublin Castle, Minister for Finance Mr McCreevy, said: "The euro had brought us major benefits, most notably lower interest rates."

Refraining from any temptation to exploit the changeover to raise prices or push for wage increases is one of the flexible responses which partnership should aim to deliver." he said.

The Taoiseach welcomed the example set by those who subscribed to the Office of the Director of Consumer Affairs' Code of Practice on the Dual Display of Prices, and he called on the social partners to play their full part in successfully managing the changeover.

"Besides avoiding inflationary price increases on the occasion of the euro changeover, it is equally important that inflationary ongoing wage increases are avoided. Such increases go beyond the spirit of the PPF," he said.