DEFENDING THE EURO

I am no fan of the euro but I do admit that it has its advantages. I also find myself coming to its defence. The euro is being blamed for price increases across Majorca. We've all noticed the increases and the island was sadly given the title of “Rip-off Majorca” by one British tabloid this summer. But you can't blame the euro, the European Central Bank or the European Commission for increasing the price of a bottle of beer or a cup of coffee in Majorca. At fault are all the businesses, which using the excuse of the euro, decided to increase their prices by as much as 50 percent taking advantage of our lack of knowledge of its value. They put up their prices and as a direct result have affected our feelings towards the euro. But unfortunately it has all backfired. While the average British holidaymaker is probably still in the dark those from Euro zone countries are not. In other-words if a cup of coffee in Munich costs 1.50 euros and in Palma it costs two euros you are going to know that you are being ripped off. This year I visited Europe's most expensive capital city and rapidly came to the conclusion that prices were on a par with Majorca. I didn't have to spend time working my calculator and checking the exchange rates because Majorca has the same currency. It is as simple as that. So all those businesses who decided to take 100 pesetas and round it off at one euro have done the eurosceptics a great service. They have pushed back the European dream because there is a high level of discontent with the single currency. British tourists returning home from Majorca will say that the euro has pushed up prices not that businesses have pushed prices as a result of the euro. The Blair government's desire for British people to become more euro friendly because they used it when they were on holiday has probably backfired as well. It's amazing what private enterprise can do.