Greece’s Prime Minister Kyriakos Mitsotakis has called for EU intervention in view of the extremely high consumer prices. “The recent inflation crisis has led to a significant loss of purchasing power for European citizens,” says a letter from the head of government to EU Commission President Ursula von der Leyen. Greek media had previously reported on Monday. Mitsotakis primarily targeted large international corporations: Multinational companies pursue very different pricing policies compared to individual member states within the EU, and the market is asymmetrical. The “collective power of the confederation of states” and its consumers, on the other hand, is not being used sufficiently, the letter said. The EU must show – also in view of the EU elections – that it is able to intervene decisively and quickly. Specifically, Mitsotakis is calling for legal measures against the practice of multinational manufacturers and suppliers of pursuing so-called territorial delivery restrictions within the EU. This practice (Territorial Supply Constraints or TSC) allows large branded goods manufacturers to artificially segment the EU internal market along national borders and charge different prices in each country. Retailers and wholesalers in an EU country are prevented from buying multinational products in cheaper neighboring EU countries. From the perspective of critics, the multinationals’ purchasing dictates make goods more expensive. Mitsotakis calls for bolder steps “so that the internal market works with more competition and transparency for the benefit of consumers.” Otherwise people’s trust in the EU market will be impaired.
Inflation: Greece demands help from the EU economy
