python adds "E" to string

This string:

"CREATE USER %s PASSWORD %s", (user, pw)

always gets expanded to:

CREATE USER E'someuser' PASSWORD E'somepassword'

Can anyone tell me why?

Edit: The expanded string above is the string my database gives me back in the error message. I'm using psycopg2 to access my postgres database. The real code looks like this:

conn=psycopg2.connect(user=adminuser, password=adminpass, host=host)
cur = conn.cursor()

#user and pw are simple standard python strings the function gets as parameter
cur.execute("CREATE USER %s PASSWORD %s", (user, pw))
conn.commit()