Development Minister Takis Theodorikakos stated on Friday (12/6) that inflation would be 3 to 4 percentage points higher if the government had not imposed price caps on products. He also spoke about a strong consumer protection framework against profiteering practices.
“For us to remove the cap, food industry and supermarkets must reduce prices”
Takis Theodorikakos, speaking at the 7th OT FORUM for the 100 Years of Oikonomikos Tachydromos, emphasized that “we imposed caps again on the profits of the food industry and supermarkets, and if we hadn’t done this, product prices would be much more expensive. Since the day we implemented the profit cap measure on businesses, price reductions on products are 67 times more frequent. Without this measure, we would have had 3-4 percentage points higher food inflation.”
Continuing, the Development Minister noted that “I have told the food industry and supermarkets, with whom I am in systematic dialogue, that to withdraw the cap measure, they must reduce prices on widely consumed products. Until then, the cap will remain and will be subject to controls to protect consumers.”
Draft law on consumer-bank relations goes to public consultation
The Development Minister, referring to the draft law on consumer relations with banks, which goes to public consultation, emphasized that “it concerns consumer and renovation loans up to 100,000 euros without collateral. A cap of 30% to 50% will be imposed on charges to the original capital, fine print is abolished, citizens will be able to speak with a real person and not a machine to learn details, and additionally, the right to withdraw from a loan contract within 14 days will be made clear and explicit.”
New productive model, productivity, demographics and reducing inequalities
Speaking about the new productive model of the Greek economy, Development Minister Theodorikakos emphasized that Greece must address productivity, demographics and reduce regional and social inequalities. “The policy we are following leads to a more productive economy, better wages and concerns the entire society. For our children to make their dreams come true, they must be able to stay here, work here, create businesses here. Since this cannot happen overnight, there must be support interventions,” he characteristically stressed.
In closing, Takis Theodorikakos mentioned that the housing and rental problem was deemed the most important, while it was linked to the country’s productive model and economic development in real estate. At the same time, he pointed out that the Development Ministry has brought back to public coffers so far 126 million euros from hundreds of investment projects under previous development laws that were not completed.
