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Mr. Ciolacu, if you still wanted cheap food, wouldn't it have been better to have called Daniel Constantin?

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MeetMilk.ro

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Having come to the head of the government and put on great deeds, more precisely, on creating a platform that would bring many votes to the PSD and the political clientele it shepherds, Prime Minister Marcel Ciolacu pressed the pedal of populism, promising Romanians lower prices for some food products .

In the first phase, the effectiveness of the somewhat similar measure taken in the case of milk was invoked. Then, seeing that most economic specialists, but especially farmers, processors and traders, reacted negatively, due to the negative effects that capping the commercial addition will have on the entire Romanian agro-food industry, Ciolacu added, insisting on issuing an Emergency Ordinance designed to fulfill his whim.

Because, in fact, this is what Ciolacu is doing now, he is satisfying an electoral whim, simultaneously with that of strengthening the position of PSD president. That's why he can no longer care about the Romanians and their well-being. Although he talks about the best interests of farmers and processors in Romania, that's why he can't do it anymore, because of them!

Thinking of a good electoral score, in 2024, in all areas: European Parliament, local, parliamentary and, why not, presidential, Marcel Ciolacu scatters illusions, such as falling food prices and decreasing inflation.

Although they were brought to his attention even from within the Government, he omits the warnings: Inflation will not decrease, because what will be lost, as profit, from the reduction of some prices on the shelf, will be moved to gain in the area of other foods and, especially, in the area of non-food goods. Then, inflation had started to decrease anyway, but as a result of the free manifestation of the market, not as a result of an administrative intervention in the market, which, in fact, is an aberration in itself.

From here, what happened in Hungary and Croatia is possible. As already written in Meat.Milk., after similar measures, in Hungary the price of food increased by 63%, instead of decreasing, and in Croatia, by 19%. As a result, Hungary abandoned the measure that proved catastrophic for the economy but, above all, for the population.

However, Marcel Ciolacu is not interested in these realities. Like a small child, he wants the toy. But he is not at all small, more precisely, he is not at all naive. He marches populist accusing, sometimes veiledly, sometimes directly, the big retail, singing to the sovereignists who howl like from the mouth of a snake that the multinationals suck the blood of the people, in their quality of "vampires". But, also in populist fashion, it says nothing about the small, traditional trade, where, in fact, the prices are really high and where, in fact, most of the mischief happens.

But what if the prices, in fact, will not decrease, but will increase, as happened in the Hungarians? Here's a situation: More every day, I can buy boneless pork leg for 18 lei, on sale, at the hypermarket I frequent. What if, say, this retailer drops the price by 20%? The kilogram of pulp will no longer be 32 lei, as it would be "whole", but about 25 lei.

In this way, the retailer put itself in front of future controls. But then, why promote it, right? So, I will no longer be able to buy the pork leg for 18 lei, but I will buy it for 7 lei more. But what did Ciolacu say about prices and inflation!? I feel like laughing.

But for him it doesn't matter, especially since those from PSD and PNL are desperate because of what is happening with the electorate, they are desperate for the rise in options of those from AUR and extremist groups, having a huge need to secure a number of sufficient votes. They are also desperate because the budget is dry and, having no other ideas, they resort to such populist, totally uneconomic and totally unproductive measures.

In fact, Ciolacu and the government, as a whole, are unable to take those measures that would improve the business environment in the agri-food sector, on the one hand, to increase the efficiency and profitability of the actors in the chain, and, on the other hand, for to increase the purchasing power of the population, because, in fact, here is the bug:

In Romania, food is not expensive. The average is 28% lower than the European average (Eurostat), but Romanians have no money. However, the same government that looks at the budget deficit, refuses to reduce the tax burden on employees, refuses to reduce citizens' fees and taxes, therefore, refuses to determine the first and fastest way to increase the purchasing power of the population. Such a thing, however, is unthinkable for those in the Victory Palace. Dust in the eyes thrown for three months is preferred by the population.

As an alternative, there was also the proposal to reduce the VAT for food products, but Ciolacu categorically refused. He said: "Such a measure would have a short-term effect, and then it would return to an alarming increase." Seriously!? And then, why is the Price Ordinance only given for three months? Is this a long term? Crazy! Dust in the eye, as I said.

But even a decrease in VAT, beyond the current quota, would it really be counter-productive? To call the former Deputy Prime Minister and former Minister of Agriculture, Daniel Constantin, to tell him whether it would be so or not.

Until one more, thanks to the economic (not administrative!) measures that Constantine took while he held the positions mentioned above, not only did prices decrease, not only did they stagnate for a period long time, but 2014 and 2015 were the ONLY years after 1989 in which Romania had a surplus in the international trade balance with agri-food products.

What better proof do you want that it is not the propaganda actions, such as the one now, but the economic measures with a positive impact on the market, that can lead to lower prices and lower inflation? Or, if Mr. Ciolacu is too lazy to call Constantin, to have Florin Barbu do it, he just proved to the full that he knows what it's like with agriculture, the food industry and retail, since with rebates.

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