Give us back the mark, say Germans

MOST Germans want the euro scrapped because unscrupulous traders have used its introduction to dramatically increase prices. In a poll, more than half said they wanted the Deutschmark back - just five months after it was replaced by the single currency.

Consumers have been outraged that staples such as bread, milk, cheese, meat, flour and sugar have gone up, while other items have doubled in price. And the problem is not limited to Germany. Watchdogs say that in the 12 countries which switched to the euro on January 1, more than 10,000 products now cost more.

Now some German politicians are calling for euro-zone 'police' with powers to fine retailers who have made exorbitant price rises. The development is embarrassing for a government which more than any other embraced the concept and birth of the single currency, which was championed by European Central Bank chief Wim Duisenberg.

Germany spent billions of Deutschmarks campaigning for the euro and persuading the public that it would be good for them. But now 54% of Germans polled by the prestigious Allensbach Institute say they want it replaced by the old and trusted mark. The response will send shock waves through Chancellor Gerhard Schroeder's government, which is already trailing badly in the opinion polls ahead of September's General Election.

In the same poll, 81% said they still calculate prices in marks - perhaps explaining why so many have flooded the government with complaints about rising prices.

A separate survey in the east of the country found that 60% wanted the mark back and the euro consigned to history. That was 14% more than when the question was last asked in March.

Last week the German government and its national bank, the Bundesbank, finally admitted what the public had been telling them since January 1 - that the euro has sent prices through the roof. Finance minister Hans Eichel said: 'We made the mistake of allowing commerce to regulate itself and that was a blunder on our part.' He said that countries such as France and the Netherlands, where many price rises were outlawed with the introduction of the single currency, had fared better than Germany. He added: 'The mood among the people is depressed about this.'

Bundesbank board member Franz-Christoph Zeitler said: 'In particular goods and services in the regions have risen considerably. We can only hope that the rises have reached their peak.' The bank's president Ernst Weltke had even admitted before the euro was introduced that the switchover would be an opportunity for 'people to misuse it to increase prices'.

Christianne Schulz, head of a Berlin consumer group, said: 'Finally the government is waking up to what we have been saying all along. The euro is the biggest rip-off since the hyper-inflation of Weimar. We have all been had and the sooner it goes the better.'

The Office of Consumer Protection in Hamburg named and shamed several shops which had made drastic price rises. An official said: 'In some cases the Deutschmark sign was just exchanged for a euro sign which nearly doubled the price.'