Who hike prices during euro adoption may face jail under new government proposals in Slovakia!

Nowadays in Slovakia, there is very interesting debate about the low, that may cause that business people will be sent to jail when increase the prices during euro adoption. This is a government plan to protect citizens from pre-euro price inflation.

The opponents say a prison is not the best way to punish businesses for elevating price, in addition to this, regulations like the planned law have no place in a market economy. On the other hand, legislation such this could lead business to elevate prices before it becomes valid, perhaps to an even greater degree.

The revision indicates a lack of understanding of the basic principles of the market economy, where the optimal price is generated based on demand and supply and a basic right of business is freedom to set prices in a competitive environment and price changes are not reason for criminal proceedings.

You can read more about this topic here: http://www.spectator.sk/articles/view/31992/3/put_up_prices_go_to_prison.html

The question is? Is such arrangement necessary to avoid price increase? How the government will hold the prices after euro adoption?

From my point of view, this is really absurd proposal, that can harm business and people, because after adoption, the prices will increase further. The best price regulator in the competitive market is a watchful customer and competition…

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One thought on “Who hike prices during euro adoption may face jail under new government proposals in Slovakia!

  1. This is a very surprising idea, because I believe that applying this law will be very controversial. First of all, who would be jailed – the CEO of the firm, the store’s manager? Who would be responsible for the unjustified price hikes? Secondly, how it is decided whether a price rise is justified or not – where do you draw the line? Now almost everyone can say that they raise prices, because the global oil prices have risen dramatically, because the labour costs have soared and so on. Finding a reason fir price hiking won’t be a problem. I think Slovakia could find a best strategy to fight against the unjustified price increases by learning from the past experience of the other countries which have already adopted the euro.

    Reply

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