Steam Adds European Local Currency

Digital download provider Steam has halted its policy of offering everything in USD as far as the UK and the EuroZone is concerned.
Products on Steam are now priced using local currency in the United Kingdom (Pounds Sterling), and Europe (Euros). All other countries remain in United States Dollars.
The calculation made on game prices appears to be "1 USD = 1 EUR". This means the average game rises in price at least 10% - when I purchased Fallout 3 on steam it cost me 65 USD including VAT, which equals 45 EUR. It now costs 50 EUR (including VAT, as far as I can see). Where Steam used to be cheaper than retail for much of Europe, this switches it around, making Steam a lot less attractive for European costumers.