Industry, suppliers, supermarkets, and the Ministry of Development are seeking common ground on a new package of price cuts for basic necessities, at a time when inflationary pressures are returning to the forefront and the cost of living remains the biggest headache for households and the government.
The search for a new agreement comes at a time when inflation climbed to 5.2% in May. In this context, Development Minister Takis Theodorikakos has held a series of meetings over the past 24 hours with representatives of the Hellenic Federation of Enterprises (SEVT) and the Hellenic Supermarket Association, opening a new round of consultations.
Government sources do not rule out the possibility of an agreement in principle between the parties involved by the end of June, although they estimate that negotiations may take longer.
“There is a positive mood on all sides, but it takes work and time,” say sources familiar with the discussions, adding that the goal is not a public relations exercise, but measures with a measurable impact on consumers’ daily lives. In other words, not a list of thousands of products that have no real impact on daily life but rather products that “burn a hole in the wallet,” say other sources involved in the negotiations who spoke to Euro2day.gr.
The prevailing view in the market is that common ground will ultimately be found. As a supermarket industry executive notes, “if there are price cuts from the industry, they will immediately reach the shelves and be further reinforced,” implying that retailers will contribute to the effort with additional price reductions at the shelf.
However, if an agreement is reached, its implementation will likely take effect toward the end of summer or in early September, according to other sources. Until then, the cap on profit margins remains in place.
A two-month extension is considered a given if no agreement is reached by June 30, at which point the measure—which acts as a red flag for the market—will expire. Government sources who spoke to Euro2day.gr noted that the possibility of extending the cap beyond June 30 remains, in order to allow the necessary time to complete negotiations and finalize the agreement.
Of course, what matters is not good intentions, but whether these will translate into price reductions, the number of products affected, and the extent and duration of those reductions.
Regarding the new digital price comparison tool set to launch this month, while market executives acknowledge the importance of price transparency, they express reservations about whether the platform will accurately reflect the true state of the market.
Similar concerns are raised regarding price comparisons with other countries. “Prices are public information, and we have no objection to them being published or compared,” they emphasize.
However, they are quick to note: “Comparisons must be made correctly and the data must be completely up-to-date so as not to create false impressions.”