How cheap is cheap?

Wine is so inexpensive here. I was used to paying a lot of money for a good bottle of wine so I've been quite skeptical about buying wine for so little money. The local wines here are Cote du Rhone (made just south of here) and Beajolais (made just north of here). Those are the ones that are the cheapest and are very good red wines. We have been paying around 2.80 euros for a particular bottle that we like. The other day I was in a store and saw a bottle of wine for 1 euro. That is less than you pay for a small bottle of water! So what did I have to lose? I bought it. We brought it home, opened it, tasted and thought it was pretty bad. We only had one glass and I threw the rest out - but that was foolish, I could have used it for cooking.

So how much do you have to pay to get a decent bottle of wine? One euro is too low, but 2.80 is acceptable. What is the break-even point? We are still experimenting and will let you know!