Romania’s government drafted and is set to publish on June 26 a bill with the end of capping the markups of food processing firms and retailers for some staple goods with the aim of curbing inflation.

It is among the first priorities announced by the new prime minister Marcel Ciolacu (Social Democrat), after he took office this month. Initially, however, he mentioned a voluntary agreement with the companies involved – since binding provisions could require a permit from the European competition body.

The markups were not announced yet and may differ for the processing firms and retailers. The final details will be announced after consultations with the companies involved.

Those failing to comply with the provisions of the regulations will be fined.

“I want to discuss the scheme with the big retail chains, with the food manufacturers as well as with the distribution firms. We must agree on a joint effort so that Romanians feel the effects. It is a necessary gesture towards all who have suffered the effects of high inflation over the past year,” prime minister Marcel Ciolacu commented, quoted by Economica.net.

iulian@romania-insider.com

(Photo source: Inquam Photos/Sabin Cirstoveanu)