The government is convening a meeting with market stakeholders to discuss new measures against high prices, considering reductions in prices and the future of the price cap.
The government is once again bringing the issue of high prices to the forefront, convening a meeting on Monday, June 29 at the Maximos Mansion chaired by Prime Minister Kyriakos Mitsotakis, with the participation of representatives from industry and supermarkets. The goal is to develop new measures to curb prices, as some of the emergency measures currently in place in the market are set to expire at the end of June.
Meeting at Maximos: Who Will Attend
Invited to the meeting are the president of SEV Spyros Theodoropoulos, the president of SEVT Ioannis Giotis, and the president of the Hellenic Supermarket Association (ESE) Ioannis Masoutis. The initiative is of both practical and political significance, as high prices continue to be, according to polls, the primary cause of public discontent.
At the same time, the government is working to strengthen consumer information tools, having already launched the PosoKanei platform, which allows users to compare prices of basic products.
The Three Scenarios — Price Cuts or Extension of the Price Cap
Three scenarios are on the table for the market’s future. The first calls for a “national social agreement” with targeted price reductions on high-consumption essential goods, based on data from market research firms Circana and NielsenIQ. The government aims for the reductions to apply to products that significantly impact the household budget and to be implemented immediately, avoiding the shortcomings of previous initiatives.
The second scenario calls for the agreement to take effect in September, with a simultaneous extension of the cap on gross profit margins until then. This scenario is considered more realistic by the market, although businesses appear opposed to extending the measure. Development Minister Takis Theodorikakos has made it clear that without an immediate agreement on price reductions, the cap will have to be maintained as a market control mechanism.
The scenario preferred by the market
The third scenario, which according to reports is favored by representatives of the market, calls for the abolition of the price cap as of July 1 and the implementation of the agreement on price reductions starting in September. Businesses estimate that this will give them the necessary time to prepare, and it is possible that this will be accompanied by an informal commitment to avoid new price hikes, despite differing public statements from the political leadership of the Ministry of Development.
