2023-09-27 16:41:45
Greece has taken measures against inflation, which no other country has taken, noted Development Minister Kostas Skrekas, in his intervention in the Parliament on the amendment that attempts to deal with inflationary pressures on basic consumer goods.
As we did in the energy crisis, we are doing the same in the issue of inflation in food and consumer products, with actions and measures that no other country has taken, said Mr. Skrekas: And the household basket, and the special labeling of products which will have a 5% reduction, for at least six months, but also the ceiling on the profit margin of businesses, are measures that Greece, and only Greece, has taken first, and we will wait to see the results and be judged on them, write down.
Referring to the prices of olive oil, the Minister of Development said that today the oil has reached a wholesale price at the mill or the producer, at 8 euros: “Why do we have 8 or 9 euros in oil? Is the Greek government to blame? No. This is the Europe-wide price. If we put a devaluation of 3 euros, for example, on the price of oil to the producer, what will happen? The next day there will be no oil in Greece. It will be sold and exported to Spain, Italy and other countries. Unfortunately, that’s how the free market works. So what can we do about oil? [..] To check the stages of the supply chain after the producer, if they take advantage of the critical situation and add profit above what they had in previous years. And that’s what we’re checking,” said Mr. Skrekas.
Next, the Minister of Development referred to the proposal to reduce the VAT on food, noting that this was implemented in Spain without success. Spain reduced VAT from 4% to 0% on bread, flour, milk, vegetables and cereals. Reduced VAT from 10% to 5% on cooking oil and pasta. What did it achieve? Annual inflation in bread and cereals was 5.8% in Spain, with 0% VAT, while in Greece it was 4%. What does this mean; Where did the VAT go? In the pockets of the intermediate stages of the supply chain, Mr. Skrekas said.
For milk, he said annual inflation in Spain was 15.1% and in Greece 6.3%. For olive oil he said the annual inflation was 52.5% while in Greece 23.5%, for pasta 2.9% inflation in Spain and 0.1% in Greece.
“Is the measure more effective in Spain? [..] (Spain) continues to have a reduced VAT and the revenues of the Spanish state are reduced and (is) increased inflation compared to Greece. This is the reality” remarked Mr. Skrekas.
Source ertnews.gr
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