ATHENS, Greece (AP) — Greek authorities on Wednesday announced fines totaling 1.67 million euros ($1.81 million) to local branches…
ATHENS, Greece (AP) — Greek authorities on Wednesday announced fines totaling 1.67 million euros ($1.81 million) against local branches of two U.S. healthcare and consumer products giants for alleged violation of the profit cap imposed under the cost of living crisis.
The Development Ministry said Johnson & Johnson Hellas was fined 1 million euros and Colgate-Palmolive Hellas was fined 672,000 euros. He did not provide further details about the alleged violations.
The fines were imposed under a law passed in July that caps gross profits from a wide range of key consumer goods and services – mainly in the food and health sectors – until the end 2023. The law stipulates that the gross profit per unit cannot exceed that before December 31, 2021.
Successive polls have identified the cost-of-living crisis, largely triggered by the war in Ukraine, as a major concern for most Greeks, with an overwhelming majority saying it has forced them to cut back on purchases of goods. base. Just like food and other consumer products, housing costs in Greece have risen sharply.
The issue increased pressure on the center-right government, which won a second term in a landslide electoral victory in June.
Development Minister Costas Skrekas said on Wednesday that tackling price rises was “a top government priority” and promised constant market controls to ensure the profit cap was enforced.
On November 2, the ministry fined the Greek branches of Procter & Gamble and Unilever one million euros each for allegedly exceeding the gross profit cap.
The inflation rate in October was 3.4% on the year, according to the country’s statistics authority, down from 9.1% a year earlier.
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