PM Mitsotakis: “Greece is not a Banana Republic”

Greek PM Kyriakos Mitsotakis chaired a cabinet meeting at the Maximos Hall on Wednesday morning addressing the pressing issue of inflation where he specified his government’s economic measures.

Addressing his Ministers, Mitsotakis stated, “Greece is not a banana republic, and the inflation of greed is intolerable.” The PM highlighted his government’s efforts in the ongoing battle to manage the high cost of living via the enforcement of regulatory rules to support market competition to the benefit of consumers.

He underlined the use of new policy tools to convey the message that Greece is not a “banana republic,” and the inflation caused by greed would not be tolerated.

Mitsotakis further explained that efforts to strengthen the Hellenic Competition Commission and intensive market controls, especially those targeting cost and profitability factors of essential products, have enhanced the understanding of market mechanisms.

Regarding specific measures, the Greek Premier announced the imposition of a cap on the gross profit margin for companies selling baby formula and restrictions on discounts offered by suppliers to retailers.

He continued by emphasizing that interventions primarily target catalog prices, limiting total supplier discounts by 30% and passing on the benefits to consumers. The affected products include household cleaners, toothpaste, shower gels, shampoos, baby diapers, and vegetables.

Addressing the issue of baby formula pricing disparities compared to the rest of Europe, Mitsotakis deemed it “completely unjustified” and declared a cap on the gross profit margin to align prices with reasonable European levels.