Price differences beweetn locations are common, even inside the same country. But the use of the Euro will cut off the difference because of the exchange rate.Only the real costs are now playing the vital part.To make the different economies converge, it has used the same frame work of monetary policy determined by the European central bank in Frankfurt. Only fiscal policy is done by the country concerned under the guideline of the European parliament. Believe it or not,it is working.
Price differences beweetn locations are common, even inside the same country. But the use of the Euro will cut off the difference because of the exchange rate.Only the real costs are now playing the vital part.To make the different economies converge, it has used the same frame work of monetary policy determined by the European central bank in Frankfurt. Only fiscal policy is done by the country concerned under the guideline of the European parliament. Believe it or not,it is working.