What problems arose when countries introduced the euro?
The introduction of the euro was generally thought by the participating countries to have been successful. Even so, quite a small proportion of transactions (20% on average) were done in euros on the first day (10% in Italy). By 18th January this had risen to an average of 85%. The main problems were the failure of cash machines in Austria, lack of preparation by the Italian banks, and a general tendency across Europe to take advantage of the situation by increasing prices. In May, the German Minister of Finance admitted that the euro transition forced up prices. In June, a Commission survey of 12,700 people across the euro zone found that 68.5% (80% in Spain) thought that prices had risen as a result of the single currency. Cafes and restaurants were thought to be the worst offenders (meal prices up by 10%). French consumer organisations estimated a 10% increase in prices. In September, the Greek Government supported a consumer strike in protest over prices increases, estimated to be
