Greece toughens anti-cartel laws to slash prices
June Samaras
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSLV42103320090331
Tue Mar 31, 2009 9:58am EDT
ATHENS, March 31 (Reuters) - Greece's conservative government plans to
strengthen the powers of the country's competition watchdog to tackle
cartels as part of measures to boost its slowing economy and cut
rising prices amid the global financial crisis.
Those who form cartels face prison terms of up to five years under a
draft law soon to be submitted to parliament, Development Minister
Costis Hatzidakis told a news conference on Tuesday.
"Our target is a more effective war on cartels," he said. "It's our
obligation towards citizens, consumers and all solid businessmen."
The law will also increase the investigative powers of the Competition
Commission, Greece's anti-trust watchdog, he added.
Lack of competition, particularly in the wholesale market, is partly
to blame for Greek prices exceeding the eurozone average, the
country's central bank has said.
Greeks pay more for milk and an array of other goods than the average
European Union citizen although salaries trail those of the euro zone.
Expensive prices are among top Greek concerns in opinion polls and one
of the reasons why the country's conservative government trails the
opposition Socialists by 5 percentage points in recent opinion polls.
The Greek economy is grinding to a halt after enjoying annual growth
rates of about 4 percent for years. The European Commission expects
Greece to post growth of just 0.2 percent this year from 2.9 percent
in 2008 with unemployment rising to 9 percent.
Over the past five years, the Competition Commission has levelled
fines of more than 245 million euros ($326.5 million) against Greek
companies including Coke bottler Coca-Cola Hellenic (HLBr.AT) and food
company Vivartia (VIVr.AT).
But firms have paid just 30 percent of the total amount because they
appeal the regulator's decisions at civil courts, dragging out the
process, its outgoing Chairman Spyridon Zisimopoulos said.
The Commission's credibility has also been shaken by scandals. Its
former administrative chief, George Adamopoulos, is currently on trial
facing charges of seeking bribes to exclude a dairy company from a
probe. Adamopoulos has denied the charges. ($1=.7504 Euro) (Reporting
by Harry Papachristou; Editing by Jon Loades-Carter)
© Thomson Reuters 2009 All rights reserv
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June Samaras
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