The process of price convergence in selected EU countries

The market of the EU countries represents a very specific mechanism for the working of competitive forces. Outwardly it is partially isolated from the effects of the world market by the Common Agricultural Policy and the Common Commercial Policy of the EU, but as a consequence of the free movement of goods, capital, persons and services on the Common Market of the EU countries, there is tough competition among its individual members. This article is dedicated to the processes of price convergence, with an emphasis on development within Central Europe. Analysis aimed at studying the development of price convergence within a few groups of countries in the Central European region has shown that membership in the EU has without any doubt a positive influence on the process of price convergence in individual countries. There exists nonetheless a certain degree of differences between the countries, depending especially on the country’s geographical location (the southern, central and northern/Scandinavian parts of the EU) and also depending on the length of time of the participation of individual countries in the concept of the EU Common Market countries.