Greek Dev. Min.: There is no magic way to avoid price increases

Speaking to ANT1 TV, the Minister of Development, Adonis Georgiadis, mentioned the wave of increases recorded in several products, noting that global price increases in October cannot be magically undone.

In a question about the diesel subsidy, which the government “cut” as the Ministry of Finance sees that there is no margin for subsidy, as a result of which its price exceeded that of gasoline, Mr. Georgiadis said that even without the subsidy, diesel fuel prices are lower than in May and in June.  He noted that if fuel prices go up, the government will review the situation.

Meeting with market reps

He said that inflation in Greece is very high and announced that on Wednesday he will have a meeting with representatives of the market, with the aim of determining what constitutes a reasonable increase, what cannot be avoided and what is excessive.

Regarding the observation that many products are at a lower price but also a smaller quantity on the market shelves, the Minister admitted that it is an existing problem, which has been under the scrutiny of state controls for two weeks. “Some products on which a profit ceiling has been set, are being sold at reduced quantities, something which is illegal, as companies changed and are being audited, noted the minister, pointing out that, “it takes a long time for results to come out and fine are collected.”

The matter was also confirmed by the president of Small and Medium Supermarkets, George Pilidis, in his intervention, adding that there are also cases where there is a higher price for a smaller quantity.

Heating subsidy

Asked about the possibility of an increase in heating subsidies, explaining that it is a matter for the Ministry of Finance, he said that, “depending on how the winter goes, every measure is being reviewed.”

Commenting on the position of Alexis Tsipras, regarding a rise in interest rates, he said that the spreads are stable and in the case of tax cuts, “there is a risk that if you tamper with basic taxes, the fiscal costs will affect the spreads.”

He noted, at the same time, that “the subsidies we give and all the money we provide are money which is a windfall from the groeth of the country, money that we have left over.

The cushion has not been tampered with, the 37 billion is now over 40. Cash is monitored by the ESM.”

In closing, he invited all businesses interested in the development law to apply now.