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BBC News Online: Business


Monday, 28 May, 2001, 15:30 GMT 16:30 UK

Europe is no 'rip-off'


Bags of oranges for sale
Shoppers across the European Union can find bargains if they cross borders. But no country is more of a rip-off than any other, according to the EU's internal market directorate.

While the EU found the UK has the most expensive oranges in Europe, it findings did not support the Department of Trade and Industry's international price survey which in April found that consumers were paying up to 40% more for branded goods.

But the half-yearly report released by the European Commission showed big differences exist for food and consumer electronics among the 15 EU nations.

The Commission also said that it still has not achieved its goal of a fully integrated common market.

The UK is one of worst offenders in applying legislation to ensure the smooth working of the common market, along with Greece, France and Ireland, the report added.

No 'rip-off'

In its survey, the Commission found no country was consistently cheapest or most expensive.

Germany, Europe's largest economy, was the most expensive for tomatoes, but the cheapest for pork. Italy is the cheapest for cod but the most expensive for cheese.

The only food for which consumers in the UK pay the most for was oranges, for which Spain is the cheapest.

Prices for electronic goods like televisions and DVD players can be up to 40% higher in one country than another, the Commission said.

Here again the UK did not rank amongst the most expensive for any of the products surveyed, but it was the cheapest for Sony mini stereo systems.

The survey

The survey is part of the Commission's internal market scoreboard showing how well EU countries are implementing laws designed to create a single market.

"We need to pin down the causes of these significant price variations, whether they are bottlenecks in competition or obstacles in distribution and marketing, and tackle them urgently," said Internal Market Commissioner Frits Bolkestein.

The survey also looks at the potential savings consumers would make if they bought items individually at the lowest possible price within the EU, with the price they would pay if they bought the basket of goods in their own country.

Here the UK ranks as third lowest of the 15 states, with average savings of 7% for consumer electronics compared with Spaniards who could save 20% by shopping elsewhere.


Related to this story:
UK retail sales at 14-month high (17 May 01 | Business) Supermarkets slash medicine prices (16 May 01 | Business) Tesco claims jeans victory over Levi's (05 Apr 01 | Business) Shop prices fall further (07 Jul 00 | Business) Car price law in force (01 Sep 00 | Business)


Internet links: European Commission Internal Market report |
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