A possible extension of the cap on the markups on all products is an unjustified and extremely damaging measure, and there is no viable argument to substantiate it, according to Romalimenta federation of food employers' associations.
"As we have repeatedly shown, the state stepping in the market is, sometimes, a necessary evil, provided that it has an exceptional character and limited in time and scope, which is not the case now: what was intended for three months has already reached a year and a half, and from 14 products we reached all of them, and without any deadline! We consider, and we say it again, that the measure is unjustified and extremely harmful, there is no viable argument to substantiate it, so we demand the return to the normal market economy - the best mechanism known so far for regulating production, stocks, prices, rewarding efficiency and fairness, to the benefit of both producers, and consumers," reads a press statement released by Romalimenta on Monday.
The organisation said that it understood the need for the measure last summer, justified to tame food inflation and mitigate its effects on the population. It added that the state must regulate existing tensions in the market at a given time, but such measures must be applied on a limited basis.
"The Romalimenta Federation has understood the imperative of summer 2023 - taming food inflation and mitigating its effects on the population, actively participating in the refinement of the mechanisms established by OUG67 and refraining from any contesting comments, regardless of the communication channel. We are aware that there are exceptional situations when, in extremis, it is necessary for the state to regulate the extreme tensions in the market and, as such, we have all understood that, for three months, we can decently endure the constraints of OUG 67. In the meantime, however, we have witnessed the extension of the measures, and now there is a lot of talk about generalisation and, practically, the eternalisation of the capping, so that we wonder if the Constitution still says that we have a free market economy."
The federation went on to say that such a measure has not been applied by any other EU member state, although all of them have faced price increases in this sector.
"If, however, capping markups is a good measure that does not harm anyone and is good for everyone, we ask ourselves: Why has no other EU state applied it, even though they have all gone through food inflation? Why doesn't the state apply it in its own companies, the energy ones, for example? Why don't we make it universal, also in chemistry, construction, banking, services, etc.? In conclusion, we demand the return to the normal path of the market economy, because, although in a confused and tense environment, we are not in a state of war and, moreover, not even Ukraine is thinking about such interventions," said Romalimenta
Agriculture Minister Florin Barbu told a news conference last week that all products processed in Romania will qualify for capping the trade markups on them, with a draft ordinance in this regard - 90% completed - to be launched for debate soon and subsequently approved by the Government.