Greek PM hosts emergency meeting on food prices as profit cap expires

Meeting at Maximos Mansion

Prime Minister Kyriakos Mitsotakis convened a meeting at the Maximos Mansion on Monday, June 29, with key market representatives to address persistently high consumer prices. Attendees included Development Minister Takis Theodorikakos, SEV president Spyros Theodoropoulos, Greek Food Industries Association (SEVT) president Ioannis Giotis, and Greek Supermarket Union president Ioannis Masoutis. The head of the Independent Authority for Market Control and Consumer Protection, Despina Tsangari, was also expected to participate.

The government’s objective is not to exchange views but to reach a binding agreement for immediate, horizontal price reductions on basic food items. The meeting marks an escalation of the issue to the highest political level, with the prime minister personally overseeing negotiations.

The profit cap and proposed agreement

The meeting takes place one day before the expiration of the profit margin cap on June 30. The cap, which limited the gross profit margin of businesses relative to a reference period, has been a key tool in curbing price hikes. Minister Theodorikakos has linked its removal to a voluntary “gentlemen’s agreement” with industry and retailers to deliver visible price cuts on essential goods.

According to reports, the government wants a list of staple products whose prices would be reduced from September 1 through the end of the year, covering the Christmas shopping period. The industry had reportedly proposed a similar pact in March, when a new inflationary wave began. Market participants, however, prefer a shorter duration, especially if elections are held as scheduled in spring 2027.

Economic pressures

Inflation remains the top concern for Greek households. Analysts at the European Commission and the ECB project inflationary pressures at least until year-end, with adverse scenarios putting the rate near or above 4%. The ongoing war in the Persian Gulf has driven up raw material and transport costs, complicating the supply chain and making long-term price commitments difficult.

Previous measures, such as the “household basket” and price cuts on over 2,000 product codes, failed to meet consumer expectations. Many reductions applied to secondary items or were not uniformly available across supermarkets. The average real annual salary in 2025 stood at €14,998, just 1.3% higher than in 2024 but 31% lower than in 2009, underscoring the strain on household budgets.

Political stakes

The cost-of-living crisis is a major political liability for the government ahead of the next elections, whenever they are called. By personally leading the talks, Mitsotakis signals that tackling high prices is a top priority. The outcome will determine whether the profit cap is replaced by a cooperative framework or whether the government will resort to new mandatory interventions.