Borzan: Greed of multinational companies should be sanctioned

Croatian MEP Biljana Borzan initiated a hearing at the Internal Market and Consumer Protection Committee on high prices across the European Union, with a special focus on record food prices in Eastern Europe, the MEP's office announced on Wednesday.

“According to the latest Eurobarometer, the majority of EU citizens believe that inflation and poverty are the biggest problems. This is particularly pronounced in Eastern European countries, where food price increases are the highest. For today's price of 10 eggs in Poland, four years ago you could buy 18; in Slovakia, as much as 24. The price of bread in Hungary has increased by 170 percent, in Bulgaria by 122 percent, and in Croatia by 65 percent in the last four years. In the Baltic countries, meat prices have increased by up to 50 percent. At the same time, in Western countries, price increases are mostly below 20 percent,” pointed out Biljana Borzan.

The hearing held on Tuesday in the European Parliament in Brussels was attended by, among others, representatives of the Commission, the European Central Bank and the UN Food and Agriculture Organization.

Experts from the European Central Bank and the European Commission warned that, despite the decline in inflation, food prices remain high. According to a study conducted by Borzan, 56.4 percent of Croatian citizens are buying less food due to inflation, and a large number of them are reaching for food of poorer quality.

“We must clearly identify and sanction those who, out of greed, 'rip the skin off the backs' of citizens,” she said.

During the hearing, many warned about large food multinational companies, of which only 11 control the majority of the market. “These are companies such as Nestlé, Unilever, P&G, PepsiCo or Mars, which cover hundreds of well-known brands, without us even realizing it. They not only determine prices, but also the quantities and quality of products available in individual countries, consciously causing prices to rise. For example, a bottle of Coca-Cola in Germany costs 1.89 euros, while in Luxembourg, due to territorial restrictions, the same bottle costs 2.89 euros. In Eastern Europe, despite a significantly lower standard of living, prices are the same or higher than in the West,” Borzan warned.

New European law

A new European law that should reduce territorial restrictions on the market is expected only next year. It is estimated that such restrictions cost consumers in the EU around 19 billion euros annually.

Through territorial restrictions, multinational companies condition distributors to purchase goods exclusively in one area and from manufacturers they designate, which deprives distributors of the opportunity to choose and purchase at a more favorable price. Ultimately, consumers, that is, EU citizens, pay the higher price.

Source HRT