Athens voices discontent to the EU over the pricing practices of retail corporations.
Companies in the European Union manipulate prices and divide the internal market, leading to different costs in various countries. Local retailers also struggle to shop in nearby EU countries. This has drawn criticism in Athens, with Greece's government making it a matter of confidence.
The Prime Minister of Greece, Kyriakos Mitsotakis, has asked the EU to intervene due to the significant increase in consumer prices observed recently. He wrote a letter to EU Commission President Ursula von der Leyen, stating: "The recent inflation crisis has caused a substantial decrease in purchasing power for European citizens." Eurostat reported a 3.2% inflation rate for Athens in April, placing Greece 9th out of the 30 countries considered. In comparison, Germany's inflation rate was 2.4%.
Mitsotakis focused on large international corporations, claiming they have very different pricing policies towards individual EU states. He argued that the EU's "collective power of federation of states" and its consumers isn't being fully utilized. The EU needs to demonstrate its ability to respond swiftly and decisively - particularly close to the EU elections.
Mitsotakis seeks legal action against multinational companies that engage in "Territorial Supply Constraints" (TSCs). These constraints enable major manufacturers of retail brands to artificially split the EU internal market based on national boundaries and set varying prices in each nation. The companies prevent retailers and wholesalers in one EU nation from acquiring their products in neighboring EU countries with lower prices. The critics point out that these businesses' purchasing demands lead to increased costs.
He advocates for more ambitious steps "to ensure that the internal market operates more competitively and transparently to benefit consumers." If this isn't done, people's faith in the EU market will decline.
In summary, large multinational companies are artificially dividing the EU internal market, charging different prices in various countries and limiting sales between EU countries. The Greek government is urging the EU to intervene and enforce laws against these practices, ensuring transparency and competition. This would boost consumer confidence, protect purchasing power and enhance the overall effectiveness of the internal market.
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- The trade conflicts regarding pricing practices in retail trade have led Greece to express discontent towards EU nations, particularly in relation to corporate strategies.
- The Greek government, in response to rising consumer prices and inflation, has urged the EU to enact laws that ensure fair trade and consumer protection within the EU, particularly in the retail sector.
- The issue of Territorial Supply Constraints (TSCs) in the retail sector, which enable companies to set varying prices across EU countries and limit sales between them, has been highlighted as a major concern by the Greek government.
- Concerns over the impact of these trade conflicts on consumer prices and purchasing power have led EU leaders, such as Prime Minister Mitsotakis, to advocate for more ambitious steps to promote competition and transparency within the EU market.
Source: www.ntv.de
