Prodi veroordeelt Berlusconi's kritiek op de euro (en)

Italy's Premier Silvio Berlusconi has clashed with Commission President Romano Prodi, when in his end-of-year press conference he blamed the euro for the hike in prices in Italy.

Silvio Berlusconi also said the euro had "so far produced many negative effects" and warned that the single currency's recent surge against the dollar was penalising Europe's economy, the BBC said.

Yet he believes that joining the eurozone had been the right decision.

Italian consumer groups say retailers took advantage of the currency changeover to round up prices, costing the average Italian household an extra 2,800 euros over the past two years, the BBC said.

However, Mr Berlusconi's comments have been strongly criticized by his domestic political rival Romano Prodi.

"It's about time that these lies are brought to an end", Mr Prodi dryly said, according to La Repubblica. Reacting to Mr Berlusconi's statements, Romano Prodi said the reason the prices have increased only in Italy is due to lack of surveillance in the country.