Greece seeks ‘social agreement’ on prices

Greek Development Minister Takis Theodorikakos declared the need “national social agreement” to reduce prices for basic products.

He called on the food industry and supermarket chains to take responsibility to society and reduce prices on a number of goods.

Speaking at Parapolitika FM 90.1the minister emphasized that in the context of the high cost of living, government policy alone is no longer enough. According to him, business, especially food manufacturers And supermarketsmust participate in efforts to control prices.

“We need a national social agreement. The forces of enterprise, the food industry and supermarkets must take responsibility by reducing prices on a number of products.”– stated Theodorikakos.

The minister noted that the government, for its part, carries out checks and intervenes where necessary. However, according to him, in a free economy, enterprises themselves must also take into account the social situation, since a large part of Greek society is struggling to cope with everyday expenses or is no longer actually able to cope.

Businesses are encouraged to seek a balance

Theodorikakos stressed that we are not talking about a ban on profits. According to him, enterprises develop precisely when they make a profit, but this does not negate their responsibility to consumers.

“Nobody is saying that businesses shouldn’t make money. Obviously, a business moves forward when it makes a profit. But they can maintain balance and reduce prices on basic products.”said the minister.

This is where the main question arises: if prices have become unaffordable for families, and the state is forced to appeal to the voluntary responsibility of business, it means that previous measures of pressure on the market are not working as convincingly as they usually sound in press releases. Asking supermarkets to be socially sensitive is fine. But the buyer is not interested in sensitivity in a cash receipt, but in the total amount.

Energy, transportation and inflation

Chapter Greek Ministry of Development also linked the rise in prices to the international situation. He noted that the war Middle East affects energy costs, transportation costs and ultimately store prices.

According to the minister, such factors inevitably pass through the entire market chain and increase inflationary pressure. This is especially noticeable in small economies, such as Greece, where external shocks are more quickly reflected in the final price of goods.

That is why, as noted Theodorikakosthe government introduced profit margin ceilings for supermarkets, the food processing industry and the fuel sector. This measure should limit excessive markups at a time of increased pressure on households.

Editorial comment

Call for a ‘social agreement’ on prices sounds beautiful but he shows the limits of government policy. If prices for basic products have become such a sensitive topic that the minister is actually asking businesses to voluntarily reduce profits, This means that the problem has long gone beyond normal market fluctuations.

Supermarkets and the food industry really need to explain to the public why prices remain high for so long even where some of the external factors have eased. But the government cannot limit itself to moral appeals. When citizens see that their salaries end before the month, the phrase about “balance of interests” sounds too abstract.

The question is simple: who will actually pay for the price reduction – business, the state, or again the consumer, who will simply be asked to endure a little longer? In Greece, this “just a little more” has too often turned into a permanent mode of life.

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