According to a survey by Eurostat, there were wide differences in price levels in 2008. The survey was conducted in 37 European states including the 27 EU members. The researchers surveyed prices of 2,500 consumer goods and services and came up with price level indices, which allowed them to compare the states’ price levels to each other. The average index was set to be 100. Anything above the average index is more expensive and vice versa.

Food and nonalcoholic drinks (147) as well as hotels and restaurants (151) are the most expensive in Denmark. The country also has the most expensive personal transport equipment (174). This makes Denmark number one in the Eurostat’s index with its overall prices some 41 per cent above the European average.

On the other side is Macedonia (non-EU) and Bulgaria as the cheapest of the EU countries. Tourists who want an inexpensive holiday should travel to the Balkan. Bulgaria’s overall price level index is just 51, which means that the country is 49 per cent cheaper than the rest of the surveyed states. Bulgaria definitely has the cheapest hotels and restaurants with a price level of just 40.

Taxes significantly influence the prices of tobacco and alcohol. For that reason prices of these products differ a lot across Europe. The lowest taxes on these are in Romania therefore their price index for this category is just 61. The highest prices for tobacco and alcohol in the EU can be found in Ireland (184 per cent) and the UK (150). The absolutely highest prices for this group of products are in a non EU country, in Norway (217).

If you want to have a “drinking holiday” you should try Romania (61) Bulgaria (63) or Lithuania (63). If you want to buy some clothes the best place to go is the UK (83) and the worst are Finland (123), Switzerland (124) or Norway (125). Also consumer electronics is cheap in the UK (86).

If we generalize the data, the cheapest countries are in south-eastern Europe (Romania, Bulgaria etc.) while the average prices are in central and southern European states. Northern countries tend to have the highest prices.

10 Most Expensive European Countries:
1. Denmark
2. Norway
3. Switzerland
4. Ireland
5. Finland
6. Iceland
7. Luxembourg
8. Sweden
9. France
10. Belgium

10 Least Expensive European Countries:
1. Macedonia
2. Bulgaria
3. Albania
4. Bosnia and Herzegovina
5. Serbia
6. Montenegro
7. Romania
8. Lithuania
9. Poland
10. Slovakia