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. ____________ Source: Steam
They haven't done that with the UK (indeed, some prices are pretty good now), but they have certainly gone that route with Europe. Lots of people are unhappy about it on their forums understandably, but as of this moment absolutely no-one from Valve has commented on why they've made prices so high for Europeans.