The Euro "Sting": Why Spain Got Expensive Overnight

Описание: Did Spain really get more expensive when the Euro arrived? If you were living in Fuengirola, Benidorm, or the luxury enclaves of Sotogrande in 2002, you likely realised that your money didn't go quite as far as it used to.

In this video, I am diving into a piece of Spanish history that still affects the cost of living today: the transition from the Peseta to the Euro. While the UK experienced decimalisation, Spain went through a "rounding up" phenomenon that changed the value of the coins in our pockets forever.

As a Cultural Insider, I remember the days when the 100 Peseta coin was the king of the vending machine. I’m explaining how a simple change in currency led to a 40% price hike on everyday items—while salaries remained frozen in time.

What we cover in this economic deep-dive:

The 100 Peseta Coin: Why the "60-cent" coin was the standard for everything from supermarket trolleys to fairground merry-go-rounds.

The 1 Euro Trap: How overnight, the cost of "small things" jumped from 100 Pesetas to 166.386 Pesetas—and why nobody batted an eye.

Salary vs. Reality: Why big-ticket items were calculated by computers, but the "street economy" left the average worker behind.

The British Comparison: Comparing the Spanish Euro transition to the UK's decimalisation.

Living in Spain – The Differences helps you understand the economic history that shaped the Spain you see today.

[00:00:04] The Hard Transition: The move from Peseta to Euro (2000-2002) hit Spain harder than decimalisation hit the UK.

[00:00:27] The Value of 100 Pesetas: The 100 Peseta coin was the standard unit of value, but it was only worth 60 cents.

[00:00:55] Salary Conversion: Salaries were converted exactly (1 Euro = 166.386 Pesetas), but consumer prices were rounded up.

[00:01:32] Overnight Price Hikes: Vending machines and fairground rides that cost 100 Pesetas (60 cents) jumped to 1 Euro (166 Pesetas) overnight.

[00:02:11] Getting Stung: Consumers paid 66% more for common items, but salaries remained computer-calculated and unrounded.

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