Greek PM Urges EU to Tackle High Prices Ahead of Elections

Greek Prime Minister Kyriakos Mitsotakis has called on the European Union to address soaring prices urgently, framing it as a crucial political challenge ahead of the European parliamentary elections. Mitsotakis emphasized that widespread frustration over declining living standards threatens to diminish support for mainstream parties in the upcoming June 6-9 vote for the 720 lawmakers of the EU assembly.

In a letter dated May 18 to European Commission President Ursula von der Leyen, the Greek conservative leader highlighted that inflation has exacerbated market inefficiencies, resulting in significant price discrepancies for essential goods across the 27-nation bloc. Mitsotakis pointed out that in Greece and other countries like Belgium, Croatia, the Czech Republic, Denmark, and Slovakia, essential consumer goods produced by multinational companies are sold at “unreasonably high prices” compared to other EU member states.

One of the key issues Mitsotakis identified was the imposition of territorial supply constraints (TSCs) by multinationals, which leverage their dominant market positions. He urged the EU to “intervene decisively, swiftly, and effectively” to rectify these market distortions.

“The recent inflation crisis has led to a significant erosion of the purchasing power of European citizens and has highlighted, on the one hand, the asymmetric power of some large multinational companies, and on the other, the untapped collective power of our Union,” Mitsotakis stated.

The cost-of-living crisis, driven by a global surge in inflation and exacerbated by energy price spikes following the Ukraine war, has particularly impacted countries like Greece, which had the second lowest GDP per capita in the EU in 2023, according to Eurostat.

Mitsotakis proposed several measures to combat these issues, including:

1. Prohibiting Multinationals from Selling Identical Products Under Different Brands: This would prevent companies from exploiting market segmentation to charge higher prices.
2. Strengthening EU Competition Laws: To curb the monopolistic practices of large corporations.
3. Banning Unfair Commercial Practices in Supplier-Retailer Relations: Ensuring a fairer distribution of profits across the supply chain.
4. Removing Language Restrictions on Labelling: Making it easier for consumers to understand and compare essential goods across different EU countries.

These proposals aim to leverage the collective power of the EU to protect consumers and ensure fair market practices, thereby restoring confidence in mainstream political parties ahead of the critical elections.