Germany’s Social Democratic Party (SPD) wants to take action against rising food prices. “With a clearly structured package of measures, we want to stabilize prices, create more transparency and give consumers effective security,” said deputy parliamentary group leader Esra Limbacher on Monday. Representatives of the food retail sector sharply criticized specific proposals such as a price monitoring body, while coalition partner CDU also dismissed the plans.
“Rising food prices are not an abstract problem for people on low or middle incomes, but a daily burden,” Limbacher told the Düsseldorf-based Rheinische Post. The SPD proposal includes introducing a so-called “Germany basket”: a “basket of affordable and price-stable basic food products produced in Germany, covering all key categories.” Retail chains would be able to participate on a voluntary basis and offer the basket.
The SPD also wants to take tougher action against hidden price increases, including through a price monitoring body to identify “problematic developments at an early stage.” Limbacher criticized so-called shrinkflation, where less content or lower-quality ingredients are offered at the same price. The goal, she said, is quick and noticeable relief for consumers and ensuring affordable basic food supplies for everyone.
“There is already such a basket. It is called a discounter,” said Christoph Minhoff, chief executive of the Federation of German Food and Drink Industries (BVE) and the German Food Association, in comments to Tagesspiegel. At Aldi, Lidl and similar chains, “you always get the lowest possible market prices.”
A price monitoring body would also be “superfluous,” Minhoff said. Price increases were driven by energy costs and political measures such as the statutory minimum wage, higher tolls and increased bureaucracy, policies for which the SPD was partly responsible. The party was therefore acting “dishonestly,” he said.
Stefan Genth, chief executive of the German Retail Federation, also sees no added value in a price monitoring body and pointed to official price statistics from the Federal Statistical Office. A new form of price monitoring would be “associated with significant effort and costs without delivering any additional benefit,” he said.
The CDU’s economic policy spokesperson in the Bundestag, Sepp Müller, also rejected the proposals. “What is often sold as a social seasoning has historically often left behind bitter poverty,” he told the Bayern media group. “Our counter-design is prosperity: open markets, fair competition, free trade.”
Consumer advocates, however, welcomed the initiative. “It’s good that the SPD is focusing on high food prices and is also proposing concrete measures,” said Ramona Pop, executive board member of the Federation of German Consumer Organizations. “We finally need clear labeling of shrinkflation. To make the black box of food price developments transparent, a state price monitoring body would be an important step.”
The Left Party said the SPD’s proposals did not go far enough. “This is all still very tame,” party leader Ines Schwerdtner said. “I don’t think this is sufficient.” Among other things, she said, tougher antitrust laws were needed.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
