[MGSA-L] Greece is second most expensive country in EU

[June Samaras]

Greece is second most expensive country in EU

http://www.ekathimerini.com/4dcgi/_w_articles_economy_12531099_26/08/2006_73538

Greece is, relatively speaking, the second most expensive country
among the European Union's "old 15" members, that is, excluding the 10
newcomers, mostly from Eastern Europe, who joined in May 2004,
according to a Eurostat survey.

The survey considers prices relative to wages (not purchasing power
parity) and finds that only Denmark is more expensive than Greece.

In fact, many products and services are more expensive in Greece that
elsewhere in absolute, not just relative, terms. The Benelux countries
- Belgium, Luxembourg and the Netherlands - are less expensive in
consumer goods, in absolute terms, while the price of services in
Greece is higher than in, for example, Italy, Spain and the UK.

Products sold by multinationals are also more expensive in Greece,
even though the producing firms strive for a uniformity of prices
across regions. According to company managers, higher taxation and
logistics costs are to blame. Development Minister Dimitris Sioufas,
not convinced by the argument, has asked the Competition Commission to
look into the matter and determine whether there are irregularities.
The commission is expected to announce its findings by the end of the
year.

The Development Ministry said prices will be lowered if more sectors
open up to competition. However, there is much to be done to get
there. And Greece, being an economy of relatively low competitiveness
and a low level of services, faces further turbulence with economic
liberalization.

Inflation, double the eurozone average, is one good indicator of
declining competitiveness. Another is the increasing current account
deficit and the relatively low level of inter-EU trade. The latter
represents only 57 percent of Greece's total trade and is one of the
lowest figures among the 25 EU members. The EU average is 66 percent.
This translates to more taxes, more tariffs imposed on imports and
exports alike, and more expensive imports. It also make Greece more
vulnerable to currency fluctuations.
---------------------------------------------------
June Samaras
KALAMOS BOOKS
(For Books about Greece)
2020 Old Station Rd
Streetsville,Ontario
Canada L5M 2V1
Tel : 905-542-1877
E-mail : kalamosbooks at gmail.com
(or) kalamosbks at aol.com
www.kalamosbooks.com