Romanian Prime Minister Victor Ponta has asked for the Competition Council’s support in the first months after applying the 9% VAT cut for food.

The Council should help preventing the emergence of new cartels on the market and make sure that producers don’t make agreements to keep prices high.

Cutting the VAT for bread had positive and less positive aspects, but when the VAT reduction will apply to all kinds of food, the competition and free market rules have to really function, Ponta said, according to Mediafax.

The emergence of cartels for meat, bread and other products would hinder an open competition, lower prices and higher quality, Ponta added.

The Government has decided to cut the VAT on all agri-food products starting June this year.

Retailers in Romania: Shelf prices will reflect VAT cut on food

editor@romania-insider.com