EU iPad prices are broadly in line with other Apple products, when you factor in the VAT. Prices quoted in the US don't include VAT/sales tax, in the EU they do. In the US a 32Gb iPad is half the price of an entry-level MacBook Pro - $499 vs $999. Here in the UK, and including VAT, prices for those products are £499 and £999.
Take off the VAT and converting £UK for $US, UK prices for the 16 & 64Gb iPads are a little under 8% higher than those in the US, the 32Gb 4% higher. Steve Jobs has said that the 'cost of doing business' in the EU results in costs about 7% higher than those in the US, and these prices bear that out - whether you believe him or not.
Whether that 4-8% increase counts as 'outrageous' is, of course, entirely up to you - especially when some of the 'increase' in prices is simply to hit a convenient sticker-price e.g. the direct $US to £UK + VAT conversion for a 16Gb iPad is $416; yes, it would have been nice if this had translated to a £399 price-point, but it really shouldn't comes as any surprise that it translates to £429.
HTH, Pete