Greece's government has warned businesses that it will not tolerate companies using soaring energy costs as cover to fatten their profits. It promised new measures against price gouging as the cost of living becomes the defining issue ahead of national elections.
"Profiteering on the pretext of rising costs will not be tolerated," Development Minister Takis Theodorikakos told Parapolitika radio.
Price increases that reflect higher costs are reasonable, he said, "but increases linked to higher profit margins cannot be accepted at this time."
The warning shows how governments across Europe are struggling to contain an inflation wave driven by two wars on the continent's doorstep, one in Ukraine and one in the Middle East, which have pushed up the price of oil, gas and electricity.
For Greece, which is still recovering from a decade-long debt crisis that sharply cut living standards, rising prices are a political danger.
In a recent Alco poll, 45% of Greeks blamed the government's policies for the high cost of living, while only 29% blamed the global energy crisis.
Mr. Theodorikakos linked the issue to Tuesday's midterm elections in the United States. He said the war in the Middle East had hit Americans' wallets, and that "the economy always plays a role in the election result in any country."
He said the new measures are being prepared with Greece's new independent consumer authority.
Inspectors have already imposed 25 million euros ($29 million) in fines, including for breaches of a legal cap on profit margins.
Supermarkets are also expected to offer discounted holiday bundles under a voluntary agreement covering about 1,100 basic products.
Critics say the steps fall short. Theoni Koufonikolakou, spokeswoman for former Prime Minister Alexis Tsipras' Greek Left Coalition, said the government's talks with supermarket chains had produced nothing meaningful for consumers.
Prime Minister Kyriakos Mitsotakis' New Democracy party is seeking a third term in elections due in 2027. Mr. Theodorikakos said winning an outright majority remains "achievable," but only if the party reaches "the parts of society that are struggling."