The Minister of Development, Kostas Skrekas, signed the Ministerial Decisions that complete and specify the measures to deal with punctuality which were announced on 01/10/2024 and voted on 01/18/24.

The drastic measures taken by the Government to deal with punctuality are the following:

  • 1. Reduction of benefits and credits from suppliers to super markets in order to ensure lower prices for the consumer.
  • 2. Preventing product price increases while implementing promotional actions on the increased prices.
  • 3. “Clean” prices from the field to the shelf for the benefit of the consumer as well as the producer.
  • 4. Ceiling on the gross profit margin for infant formula in order to rationalize prices.

Ministerial decisions define in a clear and detailed manner all the promotional actions that are prohibited in cases of price increases as well as the categories of products to which the specific measure concerns. It also determines the type of offers and discounts that constitute promotional actions for the implementation of the measures. At the same time, a reference to the application of the measures to new products that have the same or similar packaging with the same or different quantity (smaller or larger) but higher unit price is included, in order to make it impossible to apply price increases by changing the quantity contained in the package of a product.

Concerning the baby milk, it is recalled that the law provides that the gross profit margin must not be greater than the operating cost of the business, in the relevant product category, based on the financial statements of the immediately preceding management period, from the entry into force of the present, increased by 7% on of net sales, less discounts, credits or other benefits. Also, the ministerial decision sets a strict ceiling on the operating costs that businesses can claim during their audit by DIMEA.

In ministerial decisions, finally, a clear description of how the fines are calculated provided for by law, the amount of which is equivalent to twice the gross profit obtained by the company from the illegal practice, and can reach up to 2 million euros.

The Minister of Development, Kostas Skrekas, said: “The measures taken by the Greek government have begun to bear fruit, even though they were only voted on January 18. Companies are already recalling markups they have communicated to supermarkets. The battle with accuracy is ongoing and the audit services of the Ministry of Development are constantly alert. We will not stop unless we see clear signs of deflation”