Retailers, dissatisfied with capping the addition for basic foods. Conclusions after meeting with Ilie Bolojan
Prime Minister Ilie Bolojan met with retailers' representatives to discuss the ceiling of the commercial addition to the basic foods, a measure challenged by the PSD. A final decision will be taken next week.
On Friday, the prime minister had a meeting at the Victoria Palace with the Association of the Great Commercial Networks in Romania to consult on eliminating the ceiling of the commercial addition to the basic foods.
The meeting was attended by Prime Minister Bolojan, the honorary counselor of the Prime Minister, Ionuț Dumitru, the chief of the chancellery, Mihai Jurca, and a state counselor of the chancellery.
At the end of the discussions, the representatives of the traders did not give statements to the press, instead the Government issued a statement.
The retailers transmitted during the meeting that they do not agree with the intervention of the state in the economy, so neither with the ceiling of the commercial addition for food, transmits the executive.
“But taking into account the current situation will comply with the Government's decision in this regard,” the traders said according to the press release.
There was also a discussion about promoting Romanian products, and retailers' representatives said they agree to help promote Romanian producers on foreign markets, under competitive conditions. In addition, they said that Romania needs to increase the domestic production of food.
The government reports that Prime Minister Ilie Bolojan said that in collaboration with the business environment “public policies will be elaborated to support Romanian producers”.
After today's consultations, there will be political discussions again and only then a final decision will be taken regarding the extension or not the ceiling of the commercial addition for the basic foods.
Cap, one of the reasons for coalition tensions
The decision not to prolong the ceiling of the addition to the basic foods created new tensions in the ruling coal, because it was not discussed with all the partners in power, says the interim leader of the Social Democrats, Sorin Grindeanu.
On the other hand, the Government spokesman, said on Thursday that the measure was discussed in the Government meeting on June 27, one of the first meetings of the Bolojan Cabinet.
Several voices from the PSD said that the party does not agree with the interruption of this measure. The Secretary General of the Government Stefan Radu Oprea (PSD) has stated, in a Facebook post, that the capping of prices on the basic food should be maintained as it has already proved its efficiency, and the renunciation of the ceiling would greatly affect Romanians with low incomes.
Deputy Mihai Fifor claimed that the subject was not discussed in the coalition, and the only discussion was in the Minister of Ministers, and the Minister of Agriculture Florin Barbu (PSD) opposed.
The extension of the ceiling would not have an impact on the budget, sources from PSD for Hotnews said, being the commercial addition – that is, the merchant's profit. According to the sources cited, if the measure is not prolonged this will be reflected in inflation, which will increase by 2-3%.
Inflation, measured by the National Institute of Statistics through the consumer price index, climbed to almost 10%in August.
What Bolojan says
In an interview with Euronews Romania, Prime Minister Bolojan said the discussion in the government meeting was that the extension of the ceiling until September 31 will be the last.
“The measure of intervening in the market in general is not a measure that solves things, because any kind of intervention in markets generates disturbances of the type, in which you limit, in an area, a price, exactly to a mattress on which you jump, those who want to recover their addition can move the losses to increase other products,” said Bolojan.
He also said that in order to have good prices, quality products, “we must support the increase of agri -food production in Romania, we must support the processing so that we have more Romanian products”.
List of products for which they benefit from limiting the addition
Until September 30, 17 categories of products and foods have the commercial addition capped at no more than 5%:
- Simple white bread with weight between 300-500 grams, without specialties
- Magiun up to 350 grams ”.
- Consumer milk 1 l, 1.5%fat except UHT
- Cheese cheese bulk cow
- Simple cow's milk yogurt, 3.5% fat, with maximum weight 200 grams
- White wheat flour “000” to 1 kg
- Mălai up to 1 kg
- Chicken eggs caliber m
- Sunflower oil up to 2 l
- Fresh chicken – chicken meat, in applying the present emergency ordinance, means: whole chicken, chicken cutlery, whole chicken with bone and chicken wings, standard version.
- Fresh pork – pork, in applying this emergency ordinance, means: pork, pork with bone and bone, pork.
- Fresh bulk vegetables – fresh bulk vegetables, in applying the present emergency ordinance, means: tomatoes, onions, cucumbers, dried beans, carrots, bianca peppers and peppers, garlic.
- Fresh bulk fruits – fresh bulk fruits, in applying this emergency ordinance, means red apples and Golden apples, plums, pears, table grapes.
- Fresh whitish potatoes
- White Sugar Tos up to 1 kg
- Cream- 12% fat
- Butter up to 250 grams
The measure of the ceiling of the commercial addition was first taken in June 2023, when Prime Minister was Marcel Ciolacu (PSD).
Since then, processors and retailers with whom Hotnews discussed said that price regulation can have undesirable negative consequences, such as distorting optimal levels of supply or demand, but also facilitating agreements between companies to align the prices of products.
