Shopping tourism may increase due to Romanian food price restrictions

By: Trademagazin Date: 2024. 09. 02. 11:43

The Romanian government is considering new measures to curb food prices. The Department of Agriculture is currently working on an emergency regulation that would limit food margins to 20 percent. According to Agriculture Minister Florin Barbu, this initiative is based on the success of the current price ceiling for 17 basic products.

According to data from the Romanian Competition Council, the price of these products has decreased by 20-30 percent by June 2024 compared to the same period of the previous year, which confirms the government’s intention to continue and expand the regulation. Minister Barbu emphasized that the upper limit of the surcharge for basic foodstuffs was a correct decision to curb excessive price increases and contributed to preserving the purchasing power of Romanians.

According to some sources, the proposal may be approved before the fall elections, but not everyone supports the measure. The Concordia employers’ association, led by executive director Radu Burnete, opposed the proposal, saying such a measure could lead to market distortions. According to Burnete, Romania is a market economy, and he considers it difficult to implement the freezing of the margins of thousands of products. He added that although the price ceilings for basic foodstuffs were reduced after last year’s decree, the measure led to price increases for other products and failed to ease the general cost of living.

The outcome of the new measure is therefore questionable for the time being, and the impact it will have on the Romanian market and consumers may be decided in the coming months.