An extension to the agreement to cut prices on 1,740 product lines until the end of the year, preparations for a new festive package in supermarkets and the possibility of further measures to tackle unjustified price rises were the focus of comments by Development Minister Takis Theodorikakos on ERTnews’s «Eftheos» programme.
Agreement on 1,740 products extended
The minister said the agreement to cut shelf prices on thousands of product lines, reached after a meeting between the government and market representatives, would remain in force until the end of the year.
Under the agreement, he said, prices were cut on 1,740 product lines.
“No Greek government has ever capped the profits of businesses in the food industry and supermarkets,” he said.
Mr Theodorikakos explained that the decision to scrap the cap was taken in June, followed by a meeting chaired by Prime Minister Kyriakos Mitsotakis, attended by representatives of the food industry, the Hellenic Federation of Enterprises (SEV) and supermarkets.
The aim was to keep prices in check during the summer months, when increased tourist traffic could boost demand and trigger further price rises.
The agreement was honoured, the minister said: food inflation was negative in July, stood at around zero in August and turned negative again in September.
He described this as “one of the best performances across Europe”.
Festive package for Christmas on the way
The minister also announced plans for a new festive package of essential products used by consumers over Christmas and New Year.
“The head of the independent authority is handling this. I have asked her to pursue extensive cooperation with the market so that, in the run-up to the holidays, there can be an even larger package of essential products that we all use during the Christmas and New Year festivities,” he said.
New measures to tackle prices remain an option
Mr Theodorikakos warned that winter would be difficult because of the impact of the energy crisis, and said ways of tackling unjustified price rises were being considered.
Some price increases may be justified by higher fuel and energy costs, he explained. However, he warned that some businesses might try to raise prices without sufficient justification.
“At a time when society is being tested, some will have to decide to cut their profits, and their average profits will have to be lower for a while,” he said.
He added that he had received proposals from the Independent Authority for Consumer Protection, which he was reviewing with a view to considering possible measures in consultation with the government and the prime minister.
The minister stressed that the aim was to protect consumers from unjustified price rises in food and essential goods through more intensive inspections and more effective market oversight.
The cost of living and wages
The development minister acknowledged that a significant part of Greek society was under severe pressure from prices, particularly in supermarkets. Tackling the problem required both a more productive economy that could offer better wages and more effective inspections to ensure a fairer market, he said.
He also argued that the creation of 600,000 new jobs was, in his view, the New Democracy government’s greatest achievement.
“There is no better social policy than jobs. 600,000 people found work, which means wages flowing into Greek households have risen, the economy is growing stronger and social cohesion is being reinforced,” he said.
He described attracting investment in sectors that offer higher wages as a key goal for the Development Ministry, with a focus on industry, innovation, applied research and jobs requiring specialist skills.
Energy crisis measures and fiscal headroom
Mr Theodorikakos discussed the government’s measures to tackle the energy crisis, arguing that surpluses in the Greek economy created room to support society.
He noted, however, that there were specific fiscal constraints under the European Union framework.
The prime minister, the finance minister and the government were seeking greater fiscal flexibility at European level, he said, so that resources directed towards supporting the economy and society, potentially through cuts to fuel taxes, would not count towards the country’s fiscal obligations.
He also expressed concern about the rise of the far right in Europe, saying political developments and election results in European countries were warning signs.
What he said about the next election
Looking ahead to the next election, the minister said a decisive role would be played by a segment of public opinion that he estimated at around 20% or more, which he described as “the broad social centre”.
He said this group comprised people who had voted for different parties in the past, had no strong party affiliations and had not yet decided how they would vote.
“The challenge is how they will behave and how the government will persuade these people. First, that it is doing everything possible to ensure a better life for them and for the country, and to give guarantees that we can do better over the next four years,” he said.
He added that New Democracy’s goal remained winning an outright majority, and criticised Alexis Tsipras and Nikos Androulakis.
On Alexis Tsipras, he said that, in his view, his attempt to reposition himself did not change his political identity, also referring to the handling of the economic crisis during the SYRIZA government’s time in office.