Government discussions are underway with the food industry and supermarkets to agreement on price reductions.

“We are in discussion with both the food industry and supermarkets in order to achieve price reductions on products of wide use by the average Greek household. We are aiming for an agreement. If this is not achieved now, the platform will have to be extended for a two-month period,” Minister of Development Takis Theodorikakos, speaking on the “Anapentis Mikrofon” show on Parapolitika 90.1 FM.

Mr. Theodoricakos stressed that the war in the Middle East has created intense inflationary pressures, which is why it was decided to reintroduce the cap on gross margin, which is strictly enforced by the new Independent Authority. “Our orientation is to extend it beyond June 30 because the reasons that led us to introduce it have unfortunately not been removed. But we are discussing with the market to get the best possible result,” he said.

In response to a question on fines, Theodoricakos said that “they are being collected regularly and in full. My answer is unequivocal. The theory that they are not collected is used as an argument for not imposing fines. There are strict controls and fines are imposed on anyone who breaks the law. No business wants to be fined as it hurts their image. It’s not just about the financial cost, it’s also about trust.” He added that the Independent Market Surveillance Authority announced a few days ago that “since the day the cap was implemented, there have been 50 times less price increases and 67 times more price decreases. In hundreds of products prices are being reduced.”

Theodoricakos noted that the government has done a lot so far to enhance the disposable income of citizens, but it must continue with even greater intensity. “Overall, the country is doing better economically, but we still have a lot to do. We committed to a minimum wage of €950 at the end of the four-year period and I believe we will exceed this target. At the same time, serious steps are being taken to support businesses so that they can pay better wages. This is the key issue.”