Europe and Economies

medeame

I am going to have a wee moan, first about the stirling versus euro prices in our shops, no matter how we complain or that the £ has dropped a bit, we still pay over the odds in euros, i know for a fact as i am english and travel over frequently to england.

Next, why if we are all in Europe together, am i paying 23,000 Euro, for a car that is only £9,000 in the UK, and why am i paying 7 euro a packet for fags, that cost 2.50 euro all over, Italy, Spain & Greece. If we are in Europe together, then why such a price difference?

Any clue, would be interested.

Économiste Monétaire

I am going to have a wee moan, first about the stirling versus euro prices in our shops, no matter how we complain or that the £ has dropped a bit, we still pay over the odds in euros, i know for a fact as i am english and travel over frequently to england.

Is that you, Eddie? Rip off republic and such...

Next, why if we are all in Europe together, am i paying 23,000 Euro, for a car that is only £9,000 in the UK,

Because PPP exists only in textbooks.

and why am i paying 7 euro a packet for fags, that cost 2.50 euro all over, Italy, Spain & Greece. If we are in Europe together, then why such a price difference?

Because we don't have harmonised tax rates? Think back to the last budget, what tax was raised? And the year before that? - Costs of running a business are not the same across Europe.

Flamed Diving

medeame wrote: »

I am going to have a wee moan, first about the stirling versus euro prices in our shops, no matter how we complain or that the £ has dropped a bit, we still pay over the odds in euros, i know for a fact as i am english and travel over frequently to england.

Next, why if we are all in Europe together, am i paying 23,000 Euro, for a car that is only £9,000 in the UK, and why am i paying 7 euro a packet for fags, that cost 2.50 euro all over, Italy, Spain & Greece. If we are in Europe together, then why such a price difference?

Any clue, would be interested.

There are no price controls in this country, people can charge whatever they wish, irrespective of what the same company charges in the UK. Given that the retail sector is highly competitive, the only people you can blame for this are the consumers. For the rest, as UCD said, its the duty the government charges.

OfflerCrocGod

Things are worth what people will pay for them. If someone pays €30 million for a painting of a fat ugly lady then the painting if worth €30 million. If no one pays that much then it's not worth that - this is all really simple. Don't buy that car, don't buy those cigs, don't buy what you feel is a rip-off. The market will adjust itself accordingly.

Time Magazine

Flamed Diving wrote: »

Given that the retail sector is highly competitive

Hah!

Flamed Diving

Antithetic wrote: »

Hah!

Retail surely must be the most competitive market out there.

Time Magazine

The competitive environment fostered by fifty years of price controls (Groceries Order and its parents) isn't wiped away with the flick of a pen.

The wholesalers still hold an awful lot of power and the downstream market suffers accordingly.

The margins are massive in the convenience store sector.

The margins are unknown for the supermarket sector because Tesco/Lidl/Aldi all pool/hide the profits in their parents' accounts. That sector is still stupidly controlled by retail planning restrictions.

Since the abolition of the Groceries Order there's been a bit of a shake-up in the sector but it had been characterised by a distinct lack of price competition beforehand. As I said, that psyche doesn't just disappear. New entrants were/are needed. But, of course, we don't give planning permission to large food discounters in this country. Not at all. We have to protect d'local shoppe.

Low food prices?! Away with ye.

Flamed Diving

Antithetic wrote: »

The competitive environment fostered by fifty years of price controls (Groceries Order and its parents) isn't wiped away with the flick of a pen.

The wholesalers still hold an awful lot of power and the downstream market suffers accordingly.

The margins are massive in the convenience store sector.

The margins are unknown for the supermarket sector because Tesco/Lidl/Aldi all pool/hide the profits in their parents' accounts. That sector is still stupidly controlled by retail planning restrictions.

Since the abolition of the Groceries Order there's been a bit of a shake-up in the sector but it had been characterised by a distinct lack of price competition beforehand. As I said, that psyche doesn't just disappear. New entrants were/are needed. But, of course, we don't give planning permission to large food discounters in this country. Not at all. We have to protect d'local shoppe.

Low food prices?! Away with ye.

Ok, I should have thought of food. Clothes and electronics seems to be fairly competitive though.