Europe is taking its time with price adjustments

Brussels. There are still significant differences in new car prices within the European Union.

The latest report by the EU Commission in Brussels showed that price adjustments within the European Union are only slowly happening.

German car buyers have the biggest advantage when buying their car in other EU countries, such as Denmark, Greece or the Netherlands. There net prices for new automobiles are the lowest. In Germany and Austria new car prices before tax are the highest.

EU Competition Commissioner Mario Monti said that original equipment manufacturers made slight but insufficient improvements to create a domestic market for automobile sales.

He believes that the slow price adjustment is because of the European Union's current year-long transition phase. He expects significant price adjustments will take place after September 30 when the transition period for the new block exemption expires.

"The new regulations will have a much more positive effect, which will not only be restricted to car prices but will also be noticeable within the repair and service sector," Monti said.

The current price comparison examines the pre-tax prices for the most popular cars, a total of 91 models by 26 automakers. That shows price differences between national markets have decreased slightly. But about one in 10 of all examined models still has price differences of 20 percent or more between different EU markets.

According to the EU, the highest group price differences were found within the PSA group and the VW Group. The commission found that with 35 models the prices were highest in Germany.