Consumers from most new member states fear that prices will increase following accession, according to a new report.
The European Consumer Association canvassed opinion from other consumer groups in accession countries and has compiled a report analysing the hopes and fears of consumers as they head towards the EU.
"Most organisations expect an immediate increase in food prices and fear for the impact on consumers", says the report. Furthermore, increases on price rises hit poorer consumers especially hard. "With GDP per head only 40 percent of current EU levels, food takes a much larger part of people's income and increased food prices will have the biggest effect on poor consumers", continues the association.
The main reasons consumers fear an increase in prices are: higher production prices due to increased safety standards, higher VAT and a general tendency for food prices to align with the rest of the Union. Consumers also believe that food prices will increase due to the Union's Common Agricultural Policy (CAP).
Different countries, different concerns
But there is a wide variation between the ten new member states. The Hungarian consumer association believes that prices may go up by as much as eight percent whilst consumers in Slovakia expect prices actually to decrease because food in Slovakia is already higher than in neighbouring countries.
The survey confirms anecdotal evidence that consumers in some accession countries are hoarding supplies of some foodstuffs. Reports from Estonia suggest that citizens are storing away salt and sugar because prices for these commodities are expected to double after enlargement, due to new tarifs.
However, as well as fears over price rises, consumers from new member states believe that the quality of food will rise and that life in general will improve after they join the EU club. "All agreed that there will be a higher level of effective consumer protection and a better quality of life", concludes the report.
By: N. Peter Kramer
