The Ministry of Development is currently conducting an audit of multinational companies for their profit margins, while a study is being conducted to establish which of the products sold in the Greek market have a large difference on the shelf compared to the other EU countries.

This was revealed by the Minister of Development Kostas Skrekas speaking this morning to ERT while underlining that, so far, for 213 product codes, their suppliers have informed the ministry that they are immediately proceeding with a price reductionat least 5% for one semester.

As noted by Mr. Skrekas, the government has a four-pronged response to inflationary pressures: firstly by supporting income, secondly by controlling the market and cracking down on profiteering, thirdly by stimulating competition and fourthly by empowering the consumer. The cutting edge of the measures implemented by the Ministry of Development, he added, has to do with eliminating the phenomenon of inflation and greed.

“We are conducting audits, we have put a ceiling on the profit margin of the companies. Any company, any supplier that exceeds the profit margin specified by law, then heavy fines are imposed and the offenders are announced. We have already done this and we will continue to do it,” noted the minister.

Speaking about the different prices for the same products in Greece and other EU countries, including detergents, he emphasized that this is a problem that did not appear now, it is timeless but measures are being taken to stop this phenomenon.

“At the moment multinational companies are also being controlled that import detergents, personal care products. They are being checked for the profit margin and if it is found that they are making more money from 2023 than in 2021, very strong fines will be imposed and we will not hesitate to announce it” noted Mr. Skrekas.

In addition, the ministry is conducting a study on which products are sold in the Greek market and have a big difference in price compared to other countries in the EU. And as he said, if the explanations they receive are not justified, then appropriate measures will be taken.

“If we see that they are not adapted to the needs of the Greek household, we will be forced to take strong measures and we certainly expect the Competition Commission to take measures beyond the findings”, he added. He even added that the Ministry of Development expects the European Competition Commission to carry out checks and impose fines where necessary.

Asked about it whether the government has been slow to act on the accuracy issue he emphasized that this assessment is not valid, but on the contrary, as he noted: “everyone should understand that the Greek market is not “beat dogs, grind and don’t give grinds”. We will protect Greek consumers and the Greek family, and we are determined to do so.”

In addition, he referred to the “permanent” price reduction of products in supermarkets marked with special tabs saying that: “As of October 23, we have 213 product codes that our suppliers have communicated that they are immediately proceeding with a permanent price reduction. This is something that is being done for the first time in Europe. No other European country has taken such an initiative.

Greece, the Greek Government of Kyriakos Mitsotakis is the Government that for the first time takes such an initiative to reduce prices, not stabilize them. We give them the opportunity to reduce the prices of their products for at least six months and for at least 5%, in the next period, on the shelf, in order to help Greek households. An initiative in which 213 products of companies including multinationals and our goal is to exceed 500 products on supermarket shelveswhile we see that the reductions start from 5% and can reach up to 10% – 12%”.

Controls will be intensified. Companies must also respect the needs of households

Answering a question on the issue of inflation in food argued that in September it fell to 9.6%, when Spain is 10.5%. “We are almost a unit lower in terms of food inflation than Spain. In the previous months, Greece actually had a much higher food inflation than the European average,” he said, adding that, with a series of measures taken by the government, competition is starting to be stimulated and prices are coming down. As an example, he mentioned, after the wholesale price watch for fruit and vegetables, the obligation that has been adopted for supermarkets to declare the prices of fruits and vegetables on the e-katanalotis platform so that consumers can easily know where to buy cheaper fruits and vegetables.

The minister noted “…not to be misunderstood, it does not mean that everything I say has solved the problem. We say the battle against accuracy is ongoing and unrelenting and we will not relax.

And little by little, the controls on the profit margin will intensify even more, as well as the effort for the consumer to have lower prices for basic necessities. So that’s going to continue and we really believe it’s going to start bringing results.”

He also added: “From one point onward, of course, we must say that the market also works with the rules of supply and demand. So what do we do? In order not to leave the market uncontrolled we go and put a ceiling on the profit margin and we go and check not only the supermarkets which are the last link in the chain, we go and check the whole supply chain before the supermarkets and so we come and whoever wins moreover, anyone who earns a fortune is unfortunately imposed a heavy fine and announced, so that the citizens also know who they are who do not respect the needs of the household and try to earn more in a difficult period”.

Referring to the cost of the measure of reducing prices by at least 5% for a six-month period for the businesses themselves, the minister emphasized: “Companies must also understand that they must respect the needs of households, because if the purchasing power of the household is destroyed , they too will be destroyed.

They should not lower prices out of a sense of social solidarity, but also out of a concern to have viable businesses in the future.

Because as you understand that if the products reach high prices, no one will buy their products”

The minister reiterated that the VAT reduction is not a measure that has yielded the expected results in the countries that adopted it, while regarding the high price for which standardized extra virgin olive oil is sold, Mr. Skrekas stated that it is a problem which is not Greek and ours this also comes from abroad because the production has decreased a lot.