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Business: The Price is Wrong; No matter what officials say, consumers are convinced that the euro is jacking up prices, and phantom inflation is eating away at the new Europe.

Newsweek International

| April 05, 2004 | Miller, Karen Lowry; Fabiani, Cristiana; Pape, Eric; Ehrenkranz, Andrew; Theil, Stefan | COPYRIGHT 2004 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Karen Lowry Miller, With Cristiana Fabiani in Rome, Eric Pape and Andrew Ehrenkranz in Paris and Stefan Theil in Berlin

Italy is in trouble, and the euro is taking the fall. Caught in a weak recovery, Italy now rivals Germany as the worst economic laggard in Europe. In January, Prime Minister Silvio Berlusconi said the eurozone was created with undue haste, and criticized retailers for jacking up prices by as much as 100 percent in converting lira to euros. Then a respected Rome think tank, Eurispes, fueled the fire by arguing that 2.5 million middle-class Italian families are slipping into poverty, owing to rising prices and stagnating wages since the ...

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