Greece’s Development Minister Takis Theodorikakos said a government-imposed cap on profit margins has led to price reductions across 2,000 products, as authorities continue efforts to ease pressure on consumers.
Speaking about measures aimed at controlling excessive pricing and limiting profiteering, Theodorikakos said the profit margin cap applies across the supply chain, including supermarkets, wholesalers and food manufacturers.
“Since the measure was introduced, 2,000 product categories have seen price reductions, with an average decrease of 5%,” he said in an interview with Skai 100.3.
According to the minister, companies reduced prices because keeping them unchanged would have pushed their profit margins above last year’s levels, potentially leading to fines from the independent market authority. He argued that the measure has therefore delivered results.
Government seeks further price cuts
Theodorikakos said the government does not intend for the measure to become permanent, emphasizing its support for a “free, fair and healthy competitive market.”
However, he called on businesses to contribute to the wider effort by accepting lower profit margins, noting that many citizens are facing significant financial difficulties.
He also referred to a meeting planned with representatives from industry and retail sectors, saying discussions are taking place at the highest level with the aim of securing lower prices on essential everyday products.
The goal, he said, is for consumers and Greek families to feel the impact when shopping at supermarkets.
Fuel price cap set to expire
Regarding the profit margin cap on fuel, Theodorikakos said the measure is scheduled to end on June 30 and will not be extended.
He said international oil prices are approaching levels seen before the start of the war and that there are signs of a lasting decline in energy costs.
The minister added that he had discussed the issue with Prime Minister Kyriakos Mitsotakis and Finance Minister Kyriakos Pierrakakis.
Ongoing market inspections
Theodorikakos said inspections by the Independent Market Supervision and Consumer Protection Authority are continuous and cover the entire supply chain, not only products on store shelves.
“All and everyone are being checked,” he said, adding that major wholesale companies are also under investigation.
He noted that the authority recently imposed a €3 million fine on a large multinational company, stressing that reputational damage is also a significant consequence for businesses that violate the law.
Political debate over economic policy
The minister also commented on proposals by former Prime Minister Alexis Tsipras regarding tax policy, questioning his political credibility and referring to the tax policies implemented during his government’s term from 2015 to 2019.
Theodorikakos said public trust in politics is difficult to gain and easy to lose, while arguing that the current government’s policies have reduced tax evasion, lowered taxes 83 times and supported the middle class, families with children, young people and pensioners.
Looking ahead to the next elections, he framed the choice as whether Greece will continue with New Democracy and Mitsotakis toward a more productive economy, or return to what he described as the political approach of the previous government period.
