The European Commission is to tackle public concern that prices could rise with the conversion from national currencies to the euro next January.

Pedro Solbes, the commissioner for economic and monetary affairs, will on Monday tell euro group finance ministers in Luxembourg that a strong political message and technical preparation are needed to allay fears that retailers will exploit the changeover.

Ministers will be told that the Commission's latest report shows 64 per cent of euro-zone citizens "are afraid they will be subject to abuses and cheating on prices". The Commission's index measuring consumers' concern grew from 53 points in the first quarter of last year to 61 in the first 2001 quarter, with fears highest in Portugal but also strong in Greece, Spain and France.

The drive for correct price conversions is already yielding results. In France last week, five organisations representing industry, distribution and consumer groups agreed to freeze prices for consumers from November 1 to March 31 next year.

In Belgium, Didier Reynders, the finance minister and euro group chairman, has said prices should be rounded down, whereas the euro conversion rate of BF40.3399 might tempt merchants to round up.

Keeping track of prices will be difficult in the seven months before the introduction of euro notes and coins, not least because of the problem of distinguishing between legitimate price rises and those conceived as providing a cushion against the eventual switch to the euro.

The problem of a possible increase in prices was highlighted last week when leading Belgian newspapers put up their prices by 10 per cent to BF33 from BF30. Because of rounding up, the euro price increased by 10.8 per cent (82 cents from 74 cents).

The European Central Bank is to keep a close watch on the price implications of the changeover. Wim Duisenberg, the ECB president, has said the bank was aware of the danger of rounding up but was not convinced it would have a significant impact on the overall inflation figure.

However, he has called on the public to sound an alert when seeing any rounding upwards.

The Commission is pinning its hopes for consumer protection and correct price conversion on:
• double pricing in euros and national currencies
• public administrations showing a good example when converting prices and tariffs
• a commitment from industry and retailers, recorded in a memorandum of understanding with the Commission and captured in the slogan "new currency, stable prices" and
• close monitoring around the changeover period.