The N-VA wants a structural solution for high supermarket prices

“We pay much more at the supermarket than German, French or Dutch consumers.” The N-VA wants a structural solution for the high supermarket prices in this country. “The Belgian retail sector is among the five least competitive in Europe.”

Supermarkets getting more and more expensive

Our supermarket receipts have recently been significantly higher than before. The coronavirus crisis has pushed supermarket prices even higher. This is partly due to hoarding behaviour, and to the temporary discontinuation of promotions. But the cause lies deeper, according to the N-VA. “Prices have been on an upward trend for several years. A 2017 study shows that on average, Belgian consumers pay 13.4 per cent more for identical products than German consumers, 12.9 per cent more than Dutch consumers and 9.1 per cent more than French consumers.”

Strict regulation of e-commerce and distribution centres

An important reason for the high supermarket prices are the strict regulations in Belgium, the N-VA explains. “Our legislation has not adapted to the 21st century, while neighbouring countries have already taken further steps in this direction. Take, for example, the growing e-commerce industry, which is being held back by our Belgian legislation. We should make it easier. The regulations for distribution centres are also much more flexible in the Netherlands. Chains such as Albert Heijn and Jumbo, whose distribution centres are located in the Netherlands, are not subject to the same rules as our Belgian supermarkets.”

Too little competition

Moreover, the N-VA thinks that there is too little competition in our market. “According to an OECD The Organisation for Economic Cooperation and Development (OECD), established in 1961 as a result of the Marshall Plan, is a cooperation agreement between 34 countries in order to study and coordinate social and economic policy. The member countries try to solve their problems jointly and to mutually align their international policy. The organisation also collects statistical information to make comparative analyses. These OECD analyses are a valuable basis for the N-VA to test policy against itself or even to give shape to it. OECD study, the Belgian retail sector is one of the five least competitive in Europe. However, an open and competitive market environment is an essential condition for achieving greater choice, better service and lower prices for consumers.”

Government as facilitator

It is up to the government to create the conditions in which an economy can develop as freely as possible and to safeguard free competition, says the N-VA. This is especially important for our SMEs. Market surveillance is currently carried out by different bodies. That could be done better, according to the N-VA. It is thinking of the Netherlands and Germany, where there is only one competition authority. “A merger of the competition authorities allows the data to be kept centrally, which makes monitoring quicker and more efficient. What’s more, a merger will result in savings that will not cost the citizen anything, but on the contrary, will lower prices.”

Lasting reduction in supermarket prices

The N-VA is thus calling for our regulations to be adapted to the 21st century, a government that facilitates fair markets and an efficiently functioning competition authority that makes recommendations about the operation of our markets. These solutions will bring about a lasting reduction in our supermarket prices, rather than a government that intervenes through price regulation.