Greek Prime Minister Kyriakos Mitsotakis has called on the European Union to take action against multinational companies that unfairly restrict the sale of goods within the single market. He argues that these practices lead to higher prices for consumers who are already struggling with the effects of inflation.
Mitsotakis’s call comes just before the European Parliament elections, where inflation and the erosion of purchasing power are major concerns for voters.
In a letter to European Commission President Ursula von der Leyen, Mitsotakis highlighted the ongoing inflation crisis across Europe, pointing out that it has exposed long-standing problems in the markets for essential consumer goods.
The Prime Minister noted that consumers in Greece, Belgium, and the Netherlands often face “unreasonably high prices” for branded essential goods from multinational companies. These prices are higher compared to other EU countries, which is a concern for many European citizens.
One of the main issues Mitsotakis highlighted is the use of territorial supply constraints by large multinationals. These constraints limit the free exchange of goods within the EU’s single market.
While some of these practices are legal to ensure consumer information is available in local languages, they can also be used to create unfair trade practices.
The EU has addressed similar issues in the past. For example, in 2019, the EU fined AB Inbev 200 million euros for preventing Belgian supermarkets and wholesalers from importing cheaper Jupiler beer from the Netherlands.
A 2020 EU study found that such restrictions could cost consumers an extra 14 billion euros per year, highlighting significant unjustified price differences between countries.
Mitsotakis urged the EU to introduce new legislation to combat these unfair practices. He emphasized that the EU must be able to “intervene decisively, swiftly, and effectively” to address these market issues and restore consumer trust in the single market.
The issue of high prices is particularly important in Greece, where the cost of living is a significant concern. Greece has one of the lower minimum wages in the EU, ranking 21st out of 27 countries, according to Eurostat data. This makes the impact of high prices even more severe for Greek consumers.
Mitsotakis’s New Democracy party is aligned with the European People’s Party in the European Parliament, which is also the political group of Ursula von der Leyen’s Christian Democratic Union in Germany. This political connection may influence the push for new EU legislation to address these market issues.
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