BRATISLAVA, January 12, (WEBNOVINY) — At its regular meeting on Wednesday, the Cabinet approved the proposal to cancel the law on so-called „inappropriate conditions“ in business relations between retail chains and suppliers of goods, in particular food. This law, which should have prevented retail chains from misusing their strong position against suppliers was approved by parliament during the government of Robert Fico. “By canceling the law, barriers to business making in the area of supplies of goods, i.e. food supply will be lowered and as a consequence there will be a positive influence on the business environment and regulation burden will be reduced,” said the Economy Ministry which instigated the cancellation of the law. The ministry believes that elimination of the law will improve the business environment and reduce the regulatory burden.
The aim of the law introduced by the former government was to eliminate inappropriate business practices of retail chains upon concluding contracts with suppliers. The new management of the ministry opines that the law did not meet its objectives. “The law seems ineffective. Private entities are entitled to decide on their legal position independently. Entities decide for themselves whether they will conclude a contract and with whom,” the ministry stated.
Former Minister of Economy and present SMER-SD deputy Lubomir Jahnatek says that cancellation of the law will deal another blow to Slovak primary producers. “Practices of foreign retail chains will force Slovak primary producers to sell their products to supermarkets and hypermarkets at prices below production costs once the law is abolished. We believe that primary producers should raise their voices because the government does not seem to have anything but price-increasing for them to offer. I find cancellation of the law to be an anti-Slovak step,” said Jahnatek, who plans to fight the cancellation of the law in parliament.
SITA