The Maximos Mansion is attempting to open a new channel of communication with the industry and organized food retailers, seeking a mechanism to keep prices of basic goods in check—and, why not, to reduce prices on essential items. After all, rising prices are the biggest challenge for households and, at the same time, one of the most difficult fronts for the government.
It is in this context that the meeting scheduled for Monday at 12 noon at the Maximos Mansion will take place. Prime Minister Kyriakos Mitsotakis will welcome SEV President Spyros Theodoropoulos, President of the Hellenic Supermarket Association Yiannis Masoutis, and SEVT President Ioannis Giotis, with the issue of accuracy at the top of the agenda, though it will not be the sole topic of discussion, which will also include Minister of Development Takis Theodorakos.
According to information from Euro2day.gr, the “basket” is set to return to the negotiating table. According to existing research, despite its individual shortcomings, it has maintained high brand recognition and a positive image among consumers, a fact that brings it back into the picture as a potential tool for keeping prices in check. However, until all parties—who are keeping their cards close to their chest—sit down at the same table, no one can predict the outcome of the discussions.
In any case, there is a prevailing willingness in the market to participate in a joint effort to keep prices in check, provided that the commitments reflect the actual conditions of the economy. “We can commit to continuing to absorb part of the price increases and exhausting our margins before they are passed on to the consumer. However, we cannot commit to price reductions, because no one knows how raw materials, energy, and international markets will evolve in the coming months,” notes a high-ranking market executive who spoke to Euro2day.gr.
As these same sources point out, several price increases have already been absorbed without being passed on to consumers. The pressures, however, have not disappeared, and in certain product categories, the possibility of further price hikes cannot be ruled out, other sources note.
In any case, Monday’s discussion does not appear to be limited to prices. Negotiations on Sectoral Collective Bargaining Agreements (SCBAs) will also be on the table. Market executives note that rising labor costs, without a corresponding increase in productivity, limit the scope for price reductions.
Also in the background of these discussions is the cap on gross profit margins, which expires at the end of the month. Market participants insist that it would be a mistake for the government to link the removal of the cap to a “gentlemen’s agreement” on prices. “Such an approach would give the impression of negotiation or even a quid pro quo, which is inconsistent with both the seriousness of the matter and the relationship of trust that must exist between the government and the market,” they note. According to them: “If the government believes that the cap still serves a purpose, it must maintain it for the reasons it deems necessary, rather than using it as a bargaining chip. Similarly, if it believes that the measure has now run its course, it should repeal it regardless of any agreement.” “The measure,” they say, “must be withdrawn because it harms competition and, ultimately, consumers themselves, as it does not allow prices to come down as they would under conditions of healthy competition.”
Development Minister Takis Theodorikakos has stated in the last 24 hours that there are plans to withdraw the measure on fuel starting in July, while regarding food, he has said that the measure will remain in place unless there are substantial price reductions. In fact, he has stated in television interviews that “the government is seeking to reach a broader agreement with key market players, with the aim of reducing prices on products that directly affect the family budget.”