Apostolos Petalas (ESE) on Newsit.gr: Price Caps Harm Businesses and Consumers

In a strong statement to Newsit.gr, Apostolos Petalas, the General Director of the Hellenic Union of Food Enterprises (ESE), expressed his opposition to extending the implementation of price caps on profit margins for essential goods like food. According to Petalas, this law harms both businesses and consumers. He emphasized that capping mixed profit margins significantly stifles competition by freezing them at 2021 levels. When margins remain fixed for such an extended period, it essentially halts competition. No similar measure exists in any other European country concerning basic consumer products, according to Petalas, who believes it persists in Greece due to political expediency. Regarding rumors about extending the cap until the end of 2025, Petalas clarified that no official announcement has been made yet. The goal of this measure is to protect consumers from unjustified price hikes, especially during crises or inflationary pressures. However, market representatives argue it creates issues such as hindering competition, preventing companies from differentiating through pricing strategies, limiting investments due to reduced profit margins, and potentially decreasing the availability of essential products.