The Government of Romania is expected to publish today for public consultations the promised bill on staple goods prices, by which retailers and distribution groups will be compelled to charge limited margins with the effect of bringing down the shelf prices.

This is one of the major promises made by the Social Democrat (PSD) leader Marcel Ciolacu when taking the office of prime minister this month.

However, the retailers expect to reach an amicable agreement with the executive on this rather than being compelled by law. Prime Minister Ciolacu also hinted this option would be preferable since a law might require European Commission's permit – which requires time and doesn't guarantee straightforward implementation as intended.

In an attempt to persuade PM Cilacu to give up the plans for a bill and rely on an agreement, the retailers' association AMRCR has issued a statement reminding the implementation of a similar agreement for the price of fresh milk.

"What I can tell you very clearly is that I want an agreement, which we will make by the end of the year, just as it was done in France, it's no secret. I would like less to come up with a bill, but if this is necessary, be sure that we will issue a bill," PM Ciloacu commented, quoted by Hotnews.ro.

Asked if the period will be six months with the possibility of extension, PM Ciolacu said that "it would be a very good start."

iulian@romania-insider.com

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