The FINANCIAL — Slovakia's switch to the European single currency has got off to a stuttering start as shoppers in the former Communist state puzzle over prices given in both the local koruna and euro.
Many shops too, appear to have been falling down on the job.
They are supposed to be listing prices in both units, getting people used to the euro before formal conversion on January 1, 2009 but many are not, according to the trade inspectorate.
Trade inspectors were "unpleasantly surprised" following a series of early spot checks in the capital Bratislava which found serious fault with nearly half of the stores checked.
"We found that especially services are facing problems displaying dual prices; 89 percent of them did not comply with the norms," trade inspectorate head Nadezda Machutova told AFP.
"We will focus further inspections on them."
The first national report by the inspectorate on how dual pricing has been put into effect will be released on September 11 following the gloomy preliminary findings of the first week.
The requirement to state prices in both koruna and euro so far only applies to larger stores. Those employing less than five people are allowed to display only the conversion rate of 30.1260 koruna that will take effect when euro coins and cash are introduced at the start of 2009.
For those that make an extra effort to get the message, the response from shoppers has sometimes been disappointing.
A grocer's store on the outskirts of Bratislava has priced its bread and pastries in both currencies for a month but the shop assistant there questions whether customers have taken any notice.
"People do not pay much attention to dual prices yet but they have to start getting used to it," she said, adding that the switch will be especially complicated for the elderly.
"I am not sure whether our customers have even noticed dual prices," said the manager of a nearby convenience store, complaining: "We had to stay at work late and rewrite the price tags by hand."
Smaller traders are already moaning about the cost of euro adoption and lack of government help, saying that funds have been channelled towards a publicity campaign only benefitting consumers.
"It (the campaign) is not fair to small tradesmen who have to bear all the costs alone. We would like to be optimistic about the euro introduction but so far it has brought only trouble, cost and the fear of fines," said Viola Kromerova of the Slovak Trade Association.
Left-wing Prime Minister Robert Fico's government has pushed through a law threatening fines of up to five million koruna (around 166,000 euros, 245,000 dollars) and the blacklisting of those who take advantage of the currency switch to push up prices unjustifiably. The average Slovak monthly wage last year was just over 20,000 koruna.
The government publicity campaign, focussing on TV spots but including currency conversion calculators sent to every home, and special theatre shows and CDs about the euro for the large Roma minority, has been in full swing since early July.
Even so, a poll published in August by the national statistics office showed 33 percent of Slovaks are afraid euro adoption will drive price rises and speculation.
Discussion about this post