“We have passed a number of measures related to caps on corporate profit margins on basic living items and obviously on food as well.”
The Minister of Development Takis Theodorikakos, answering the topical question of the member of the ND Giorgos Vlachou, regarding “the operation of the market” emphasized that “we have open ears to any reasonable and positive proposal to address the accuracy».
The minister said that the goal of the policy followed by the government “is the strengthening of the disposable income of citizens and families. The fall, as much as possible, of the price level, the de-escalation of the increases and our focus is on the households that have the greatest difficulties”.
Mr. Theodorikakos reported to the ND MP. that “we absolutely agree that the main goal is to make healthy competition work in the market, that we are going through an extremely difficult period with extraordinary situations, that is why we are taking extraordinary measures, which under other conditions and situations would be impossible for a liberal government to take.”
He reminded that the government and the deputies of the ND “We’ve passed a number of measures related to caps on corporate profit margins on staples and obviously food, as well as banning discounts on overpriced products.” Along with these measures, said Mr. Theodorikakos, this semester the Competition Commission has been strengthened with 50 additional officers, the upper limits of fines have been multiplied, putting very strong pressure on the market and with electronic controls.
Food inflation
Regarding the results of the government’s policy, the minister said that “this policy clearly has results” saying that “according to Eurostat and ELSTAT, food inflation in November was at 0.8% , perhaps the smallest in the whole of Europe, as Germany has 2.9%, the EU average. he is also at 2.9% and we have other countries that are above 6%”.
“In the last six months, the average prices in super markets, where Greek households buy basic items, are negative” he emphasized.
The minister estimated that the biggest problem is with this social group that needs to rent a house, as “they are facing a very serious problem, because rent prices, especially in Attica, have soared” and here he acknowledged that many things will still have to be done . “I’m not here for impressions”, but to be “judged by results”. Commenting on the 15 proposals made by the ND deputy, he said that “I have already launched some of them for substantial utilization by the auditing mechanism. And these will without a doubt bring results.” He rejected, however, that the fines are imposed for communication reasons.
The minister pointed out to Mr. Vlacho that when he was the Deputy Minister of Commerce, he found out “that in December 2007 we had food inflation at 4.80% and in December 2008 at 3.90%, when general inflation was 3.90% and 2% respectively”.
The member of the N.D. George Vlachos, for his part, referring to the accuracy of the market noted that “the continued appreciation of basic goods shows how wrong the analysts and all those who talked about a temporary phenomenon were.” He noted that “in these extraordinary situations we are living in, it is necessary to take extraordinary measures to protect consumers as well as healthy businessmen”. The MP told the minister that upon assuming his duties “he expected comparative interventions to deal with this difficult situation, as determined by ELSTAT’s data and experienced by society”, but “to this day I am unable to understand any policy” as ” neither the seasonal and festive baskets, nor the controls and fines -beyond the ephemeral impressions-, nor the reduction of the VAT constitute any specific policy, but extraordinary measures that cannot change the big picture that citizens see and live”.
Mr. Vlachos said that “maintaining the profit rate, without other measures, is not a complete policy” while “the prohibition of offers on overpriced products is something correct, but it is not enough”. He stated that he disagrees with some “neo-liberal viewpoints, who argue that there can be no interference in the free market” and added that “instead of asking the E.U. to wake up from its lethargy and obsessions to take measures and in gentlemen’s agreements with retail, we must take measures that will define a comprehensive policy for the smooth functioning of the market and consumer support”. The MP observed that “the income increases that the government is trying, it is wrong to say that they will offset the increases by covering the unregulated market”.
At the same time, the MP advanced 15 proposals such as: The prohibition of any price increase. Every price increase must be announced to the Ministry of Development together with the file of cost data documenting this increase. Also, a file related to the sale price in the other EU countries should be filed together. when it concerns imported products. The Ministry of Development must, within 20 days, check the completeness of the submitted data, accepting or rejecting the proposed price. The Ministry of Development may request documentation for any product, regardless of the price increase request. The gross profit percentage remains stable for a limited period of time, due to the disruption in the Greek and international market. For products produced in Greece, only a file of cost information should be submitted. The sale of agricultural products should be carried out with documents stating the price and paid with a two-line cheque. Maintaining the ban on offers on recently repriced products. Any agreement between wholesale and retail to be notified to the Ministry of Development. Every offer or discount should be written on the invoice, in order for the Ministry of Development to know the net charge price. Only returns of expired products can be processed with consignment notes. Separate marking of each new package, mainly, which reduces the quantity. Unit price marking prominently on shelf tags. Price reading machines at various points inside the super market. Payment of invoices up to 90 days and in 30 days for fresh and limited consumption products, so that the farmer and breeder does not finance the trader. In the event of a VAT reduction, this should be kept in the cash registers of the stores, as is done with the offers, because this is the only way it will reach the producer.
Mr. Vlachos told the minister that “with the proposals I have developed for you, we cannot promise miracles, but we can make the Greeks not feel second-class with the citizens of other countries” and concluded by asking, “we have the will to confront the badly written ; By clashing perhaps with interests?”
