The arrival of the euro has not led to generalised price increases and will not have a significant impact on inflation across the euro zone, according to European Commission President Mr Romano Prodi.

"Consumers' associations and the press brought attention to some limited rises in some prices. On the basis of the information we got from member-states, for the moment there are no signals of generalised price rises, not to the extent where there would be a significant impact on inflation," he said yesterday.

Mr Prodi said the changeover to the single currency had been a success, with three-quarters of all commercial transactions in the zone made in euro. Almost all cash transactions across the euro zone will be in the single currency by tomorrow, according to the European Central Bank.

At the close of business yesterday, it had issued more than two billion €5 notes, more than two billion €10 notes and close to two billion €20 notes.

The withdrawal of national currencies had also been progressing as expected, the bank said yesterday. "The total value of national bank notes in circulation declined by a further 4.8 per cent to €210.1 billion on Tuesday. By the end of this week, it is expected that almost all cash transactions will be processed in euros."

In Italy, prosecutors in Rome have opened an inquiry into doctored Italian euro coins which have been fetching high prices on the collectors' market. The alarm was raised after around a dozen flawed two cent coins turned up marked as one centime. The coins were from the first euro kits distributed in the north of Italy. Police believe the flawed coins were the work of an employee of the state printing plant and mint.

Meanwhile, four faulty €10 and €20 notes were found in Finland. The bank said it did not expect to find many more of the faulty bills, which were missing the security ink on the back of the notes.

Danish Prime Minister Mr Anders Fogh Rasmussen said a referendum to join the euro would not happen in the very near future. His announcement came as Swedish Prime Minister Mr Goran Persson confirmed he was targeting spring 2003 as a likely referendum date.

The Danish electorate rejected swapping their crown for the euro in a September 2000 referendum. Mr Rasmussen said that vote must be respected, but that he intended for his country to eventually change its stance towards the euro.