92003E1879

WRITTEN QUESTION E-1879/03

by Christopher Huhne (ELDR) to the Commission

(6 June 2003)

Subject: Price alignment in the euro-area

Will the Commission examine the evidence of any price alignment for similar goods and services within the euro-area compared with the EU as a whole and the non-euro EU Member States? How significant has this alignment, if any, been? How much further is it likely to go?

Answer given by Mr Solbes Mira on behalf of the Commission

(8 July 2003)

The evidence on prices for individual products suggests that price dispersion is generally lower in the euro area than in the Union as a whole, although the difference depends on the particular product which is under examination. The continuing large differences in prices for individual products found in many surveys suggests that price alignment has further to go. The extent to which price alignment continues depends not only on the beneficial effect of the euro but also on other factors such as progress in reducing barriers to trade through the Internal Market and the extent of differences between national taxation systems.