Euro - anyone else with first thoughts?

Euro - anyone else with first thoughts?

Post by Tony Brockleban » Wed, 16 Jan 2002 02:50:03


Just returned from ten days skiing and first experience of Euro's.

Spent a lot more than last year whilst buying less?  Anyone else feel the
same way?

If my gut feeling to French Euro prices is true the French will have 20%
inflation within the year.

If you're heading off in the next few weeks I'd suggest packing extra loot.

Tony

 
 
 

Euro - anyone else with first thoughts?

Post by David Of » Wed, 16 Jan 2002 03:38:16

If you use The Economist's measure then Le Big Mac has dropped from 5 Francs
to 4.83 Francs (or the Euro equivalent).  This also seems to be the
inflation measure of choice of Wim Duisenberg if recent statements are to be
believed.  So maybe there will be deflation?

As far as the average French resident is concerned the big hypermarkets have
a stability pact where they have agreed not to raise prices, my own
experience is that this is largely being respected.  Small commerces are
raising some prices, for example my Brasserie charged 6.50 Francs for a
coffee, this is now 1 Euro and a bagette seems to have crept up 10 centimes
too to 0.70 Euro which makes sense.

I'm not disputing what you have found, just to say that for most people the
Euro will probably add 1% to inflation including the costs of introducing
the new money which will be born in part by consumers.

The main criticism which everyone seems to agree on is that the conversion
should have been done on the same day as dual currencies is very confusing.

David


Quote:
> Just returned from ten days skiing and first experience of Euro's.

> Spent a lot more than last year whilst buying less?  Anyone else feel the
> same way?

> If my gut feeling to French Euro prices is true the French will have 20%
> inflation within the year.

> If you're heading off in the next few weeks I'd suggest packing extra
loot.

> Tony


 
 
 

Euro - anyone else with first thoughts?

Post by Tony Brockleban » Wed, 16 Jan 2002 04:05:56

Maybe you've finally found an argument for McDonalds in ski resorts.

I agree with the dual currency causing confusion, it would have been far
easier with a straight conversion.  After ten days you still had no real
feel for the value of the Euro.

You may be right but I suspect the politicians may be proved wrong.


Quote:
> If you use The Economist's measure then Le Big Mac has dropped from 5
Francs
> to 4.83 Francs (or the Euro equivalent).  This also seems to be the
> inflation measure of choice of Wim Duisenberg if recent statements are to
be
> believed.  So maybe there will be deflation?

> As far as the average French resident is concerned the big hypermarkets
have
> a stability pact where they have agreed not to raise prices, my own
> experience is that this is largely being respected.  Small commerces are
> raising some prices, for example my Brasserie charged 6.50 Francs for a
> coffee, this is now 1 Euro and a bagette seems to have crept up 10
centimes
> too to 0.70 Euro which makes sense.

> I'm not disputing what you have found, just to say that for most people
the
> Euro will probably add 1% to inflation including the costs of introducing
> the new money which will be born in part by consumers.

> The main criticism which everyone seems to agree on is that the conversion
> should have been done on the same day as dual currencies is very
confusing.

> David



> > Just returned from ten days skiing and first experience of Euro's.

> > Spent a lot more than last year whilst buying less?  Anyone else feel
the
> > same way?

> > If my gut feeling to French Euro prices is true the French will have 20%
> > inflation within the year.

> > If you're heading off in the next few weeks I'd suggest packing extra
> loot.

> > Tony


 
 
 

Euro - anyone else with first thoughts?

Post by euroleade » Wed, 16 Jan 2002 04:52:08


Quote:
> If you use The Economist's measure then Le Big Mac has dropped from
5 Francs
> to 4.83 Francs (or the Euro equivalent).  This also seems to be the
> inflation measure of choice of Wim Duisenberg if recent statements
are to be
> believed.  So maybe there will be deflation?

> As far as the average French resident is concerned the big
hypermarkets have
> a stability pact where they have agreed not to raise prices, my own
> experience is that this is largely being respected.  Small commerces
are
> raising some prices, for example my Brasserie charged 6.50 Francs
for a
> coffee, this is now 1 Euro and a bagette seems to have crept up 10
centimes
> too to 0.70 Euro which makes sense.

> I'm not disputing what you have found, just to say that for most
people the
> Euro will probably add 1% to inflation including the costs of
introducing
> the new money which will be born in part by consumers.

> The main criticism which everyone seems to agree on is that the
conversion
> should have been done on the same day as dual currencies is very
confusing.

> David

There is also the theory that as we can now more easily compare prices
between euro zone countries this will place downward pressure on the
prices of goods sold Europe-wide. Makes some sense, I suppose, if
you're buying the kind of goods you can get over the Internet.

Pete
http://skiclubgapmerlette.alpesprovence.net

 
 
 

Euro - anyone else with first thoughts?

Post by Ac » Wed, 16 Jan 2002 17:16:00

On Mon, 14 Jan 2002 17:50:03 -0000, "Tony Brocklebank"

Quote:

>Just returned from ten days skiing and first experience of Euro's.

>Spent a lot more than last year whilst buying less?  Anyone else feel the
>same way?

>If my gut feeling to French Euro prices is true the French will have 20%
>inflation within the year.

As David says, this does not seem to be happening, except perhaps a
little in street markets and cafs. Certainly not for larger items
like skis (I bought some last week) and hotel prices etc.

IIRC the government has guaranteed that prices will not generally
increase as a result, although how they're implementing this is
another matter. I guess it's just getting the buy-in of the major
retail chains to honour said guarantee.

In any event it seems to be working, and I haven't seen any probs with
dual currencies either - I mean, didn't everyone empty their wallets
of francs just before the new year -:?

Quote:
>If you're heading off in the next few weeks I'd suggest packing extra loot.

Naah, just remember the plastic, as ever.

--
Ace in Alsace
Ski Club of Great Britain http://www.skiclub.co.uk
All opinions expressed are personal and in no way represent those of the Ski Club.

 
 
 

Euro - anyone else with first thoughts?

Post by Ian Spar » Wed, 16 Jan 2002 17:45:33

Quote:

>>If my gut feeling to French Euro prices is true the French will have 20%
>>inflation within the year.

>As David says, this does not seem to be happening, except perhaps a
>little in street markets and cafs. Certainly not for larger items
>like skis (I bought some last week) and hotel prices etc.

I'd echo that from Germany/Austria. Larger items have been dual priced
for sometime of course so there's not much room to increase prices
just because it's after the changeover. Most of the shops here seems
to be dual priced still as well making a comparison easy, I'm not
clear what the changeover protocol said about this, ie how long dual
labeling will continue.

However, most restaurants and cafes just produced new menus in the new
currency making any comparison difficult. What I have found is I'm
having to recalculate what I would tip in restaurants etc, the new
units make it a little awkward to round some bills.

Areas which are real problems are small cash transactions, ie auto
tolls, car parks, cigarette machines etc, the reasons are fairly
obvious.

Quote:

>IIRC the government has guaranteed that prices will not generally
>increase as a result, although how they're implementing this is
>another matter. I guess it's just getting the buy-in of the major
>retail chains to honour said guarantee.

No legal enforcement I think, just an gentlemans agreement for some
retailers, this only covered staples like food IIRC.
 
 
 

Euro - anyone else with first thoughts?

Post by steve rou » Wed, 16 Jan 2002 18:52:20


Quote:

> >>If my gut feeling to French Euro prices is true the French will have 20%
> >>inflation within the year.

> >As David says, this does not seem to be happening, except perhaps a
> >little in street markets and cafs. Certainly not for larger items
> >like skis (I bought some last week) and hotel prices etc.

> I'd echo that from Germany/Austria. Larger items have been dual priced
> for sometime of course so there's not much room to increase prices
> just because it's after the changeover. Most of the shops here seems
> to be dual priced still as well making a comparison easy, I'm not
> clear what the changeover protocol said about this, ie how long dual
> labeling will continue.

> However, most restaurants and cafes just produced new menus in the new
> currency making any comparison difficult. What I have found is I'm
> having to recalculate what I would tip in restaurants etc, the new
> units make it a little awkward to round some bills.

> Areas which are real problems are small cash transactions, ie auto
> tolls, car parks, cigarette machines etc, the reasons are fairly
> obvious.

> >IIRC the government has guaranteed that prices will not generally
> >increase as a result, although how they're implementing this is
> >another matter. I guess it's just getting the buy-in of the major
> >retail chains to honour said guarantee.

> No legal enforcement I think, just an gentlemans agreement for some
> retailers, this only covered staples like food IIRC.

In Austria they have actually put legal safeguards in place to stop
price-gouging (for example, ski hire shops had to decide their prices for
this winter at the end of the previous winter as there was a price freeze in
the run-up to the Euro) which is why most Euro prices are exact and not
rounded. The dual schilling/Euro lasts for two months and then it's all
Euros. However most people are just getting rid of all their schillings and
working in Euros. Couple of hiccups with people using Euro pay-in slips and
giving 14 times the donation they intended to to charities (most charities
are being pretty good about this) and anybody reliant on tips
(bars/restaurants/ski school) has been complaining mightily about first two
weeks in January, when people were not tipping or undertipping because of
unfamiliarity with the currency.
--
Steve Rout
remove snowflakes from email to reply
http://www.walkseefeld.com/
 
 
 

Euro - anyone else with first thoughts?

Post by Ian Spar » Wed, 16 Jan 2002 19:49:50

On Tue, 15 Jan 2002 10:52:20 +0100, "steve rout"

Quote:

>In Austria they have actually put legal safeguards in place to stop
>price-gouging (for example, ski hire shops had to decide their prices for

That I didn't know, I assumed the reason for the voluntary agreements,
as thy are in other countries, was that there already exists
legislation in the EU that would have made it illegal for the
goverments to apply price controls.
 
 
 

Euro - anyone else with first thoughts?

Post by Matt Beal » Wed, 16 Jan 2002 21:08:44

just back from a week in Val Thorens -

we did feel that we spent alot, with out getting much back!

Any the coins seem to be ***y annoying if you in a darkish place as you
can't seem to distinguish the difference say between a 20cent, 50 cent and a
1 Euro coin....

 
 
 

Euro - anyone else with first thoughts?

Post by David Of » Wed, 16 Jan 2002 22:45:16


Quote:
> Maybe you've finally found an argument for McDonalds in ski resorts.

Megeve, Chamonix and Davos have them and there are two in Albertville and
you can also find one in Gap and one in Digne and way too many in Grenoble.
I don't reccommend the one in Digne as the whole town seems to think it is
the height of cool to eat there.  The Chamonix one is a nice building but
has had a detrimental effect on nearby cafes.  They only got permission to
build the one in Chamonix by sponsoring the local ice hockey team.  The one
in Davos is a target for WEF protestors.

I read that France has more McDos per head of population than any other
country in the world.

Quote:



> > If you use The Economist's measure then Le Big Mac has dropped from 5
> Francs
> > to 4.83 Francs (or the Euro equivalent).

My apologies, it is 4.92 Francs and this is for a limited period only.

David

 
 
 

Euro - anyone else with first thoughts?

Post by Nigel Hea » Wed, 16 Jan 2002 00:17:51

Was in St Anton over Xmas New Year .  Evereything went smoothly , just a
few resrictions on the amount you could get out the ATM's the first few
days however all banks were open
in the evenings to cope . In fact the ATM's were piling the Euro dosh
out on New Years Eve.

As for prices .  Beer.  Quite alot of bars have reduced there measures
ie 0.5L  is now served in 0.4L for the same price as last year but in
Euro's .

Its not surprising that prices will be rounded up as businesses have had
to pay for all the changes ie ; Menus, Cash Till conversions , etc .

Seeing here in Holland everything has been dual marked for about the
last 3 years its not such a big change .

Nigel

Quote:

> Just returned from ten days skiing and first experience of Euro's.

> Spent a lot more than last year whilst buying less?  Anyone else feel the
> same way?

> If my gut feeling to French Euro prices is true the French will have 20%
> inflation within the year.

> If you're heading off in the next few weeks I'd suggest packing extra loot.

> Tony

 
 
 

Euro - anyone else with first thoughts?

Post by Nigel Hea » Fri, 18 Jan 2002 00:11:03

Read in Dutch Press today that the Finns are scrapping the 1 cent coing already
!!

Re. McDonalds .  They got that festering disease  in alot of Austrian resorts
located on major road artery's . ie Zell am Zee .  Im glad there not
proliferating in all resorts I go to these places to eat local cusisine of a
plate with knives & forks .
As a side; I enquired why they hadn't got a McDonalds in St Anton yet ?  Well
,apparently to run a profitable McShit franchise you need at least 25000 people
through the outlet in a week .
With the seson being only Dec-May and the Peak being only 2 months of that, you
can see why there not there yet & Hermans Hamburgers will live on   !

Nigel

Quote:

> just back from a week in Val Thorens -

> we did feel that we spent alot, with out getting much back!

> Any the coins seem to be ***y annoying if you in a darkish place as you
> can't seem to distinguish the difference say between a 20cent, 50 cent and a
> 1 Euro coin....

 
 
 

Euro - anyone else with first thoughts?

Post by tray » Fri, 18 Jan 2002 01:44:24

I just smashed open the foreign treasury holdings (read piggy bank) and
wonder if the FF coins I have are still legal tender or is it just notes?
Does anyone know what's to become of all these soon-to-be useless coins?
(Maybe they could build a monument so that they could feature a real
structure on one of the Euro notes!).


Quote:
> just back from a week in Val Thorens -

> we did feel that we spent alot, with out getting much back!

> Any the coins seem to be ***y annoying if you in a darkish place as you
> can't seem to distinguish the difference say between a 20cent, 50 cent and
a
> 1 Euro coin....