The countdown is on for the launch of the agreement to cut prices on basic products, with the measure due to take effect from 31 August and last until at least the end of the year.

The list of products taking part in the initiative has largely been locked in, and the price reductions agreed so far average around 7%, according to ERT News, the news service of Greek state broadcaster ERT.

Market sources say suppliers are offering reductions of around 5%, while supermarkets are adding a further discount of about 1.5% to 2%, boosting the overall benefit for consumers.

Up to 1,500 product codes on the list

The list has not yet been fully finalised, however, and is expected to expand over the next 10 days. The Development Ministry estimates that a further 200 to 300 product codes could be added to the agreement by 31 August.

Around 1,100 product codes are currently taking part, and if the estimates for new additions are confirmed, the total number of products sold at reduced prices could reach as many as 1,500 codes.

The agreement covers, among other items, meat, dairy products, eggs, pasta, baby food, coffee, detergents and school supplies.

It is a wide range of products covering both everyday food needs and basic household expenses, at a time when the cost of the weekly supermarket shop remains a significant burden on family budgets.

Strong interest from suppliers

Interest from businesses has also been notable so far. Around 60 suppliers have expressed interest in taking part in the agreement, with a further four or five expected to join.

The initiative will take effect on 31 August and run until at least 31 December, with the main aim of containing prices on mass-consumption products and easing the pressure on family budgets.

“We are supporting Greek family income through action“

Development Minister Takis Theodorikakos referred to the full range of Development Ministry and wider government policies supporting Greek family disposable income, through measures to cut the cost of living, strengthen the productive economy and create more and better paid jobs, speaking to Greek television channel Open.

On the national price-reduction initiative, Theodorikakos announced that it would launch on 31 August, and said the list of products and the reduction percentages would be finalised by the end of next week.

“What matters to me is not exactly how many product codes there will be. What matters is that they are mass-consumption products, relevant to the average Greek household, the average Greek family: food, basic living essentials, basic household maintenance items,” he said, noting that the process was already in full swing, with many hundreds of codes involved.

As he explained, for a product to be included in the initiative the reduction must be at least 5%, lasting between two and four months, while for some products the proposed reductions are in double figures. The initiative will cover all the main product categories, food and basic living essentials, as well as school supplies.

“The initiative will certainly cover school supplies too, since in the first days of September families with children face the added expense of school items,” he said. He added: “For someone who counts very carefully how much they spend at the supermarket, cutting their monthly cost for a period by 40 or 50 euros is a significant thing.”

Citing Eurostat figures for July, which showed food inflation in Greece at minus 0.4% year on year and minus 2.3% compared with June, the lowest monthly change among eurozone countries, Theodorikakos said this showed the summer price-containment agreement was working.

“That doesn’t mean, of course, that prices have fallen for all products, or that there aren’t products whose prices have risen,” he clarified, adding: “We are not celebrating, and we are in no way complacent. We are working together with market bodies for society, and together with society, because our responsibility is, alongside jobs and improved wages, to also have a fairer, more functional and more competitive market.”

Turning to the shift in Greece’s production model and the push to strengthen industry, Theodorikakos said: “We have completely changed the strategy and mindset behind the Development Law, Greece’s investment incentives legislation. As we speak, around 500 productive investments are under way in industry, 95% of which are taking place in the regions, in provincial Greece and particularly in border areas.”

“There is clearly a cost of living problem“

He noted that 60,000 additional jobs had been created in industry over the past seven years, with annual gross earnings running at around 25,000 euros, higher than the economy’s average. “We want to strengthen the role of modern Greek industry even further,” he said, stressing that higher productivity and competitiveness meant better wages, more opportunities for young people and a more resilient economy.

Linking the Development Ministry’s measures to the government’s wider policy of supporting incomes, Theodorikakos said: “There is clearly a cost of living problem. What matters is having a strategy for tackling it, both radically and through specific, timely interventions. We are doing both. A radical approach means better wages, a more productive economy, more investment, better jobs and more employment.”

He recalled that the minimum wage had risen by 40% in recent years and that the average wage now exceeds 1,500 euros, pointing in particular to government measures for young workers and support for households: “Young people up to the age of 25 pay no tax when they work, and up to 30 they pay half tax. Meanwhile, those who live in rented accommodation receive the equivalent of one month’s rent a year in state support. These are measures and policies to support citizens.”

On the repayment of 13 billion euros of public debt, the Development Minister said reducing it was a matter of responsibility towards future generations. “We are able to repay part of our debt, and we are doing so because we want to leave less debt to younger people, to future generations. I don’t believe there is a parent who would want their debt at home to increase and be passed on to their children,” he said.