Georgian PM: coordination with businesses could help reduce prices

Georgian prime minister Irakli Kobakhidze on Saturday said that his government was seeking coordinated efforts with businesses to reduce prices, while emphasising that heavy-handed interference in the free market was unacceptable.

Speaking on Imedi TV show Open Air - Debates, Kobakhidze acknowledged that businesses were primarily focused on maximising profit, which was natural in a market economy.

“The task is not simple, because we are dealing with businesses that are free and operate according to their own judgment. Any business is focused on maximising profit, and direct interference in all of this is not acceptable”, he said.

The prime minister stressed that direct or heavy-handed government interference in this process was not acceptable, as it could lead to the collapse of market relations.

“Under conditions of heavy-handed interference, market relations could completely collapse. Therefore, this issue is sensitive, and naturally we have never considered harsh intervention in market relations. However, we believe that if businesses operate with a high sense of social responsibility, and if there is coordination on the issue of reducing prices, achieving results is possible”, Kobakhidze noted.

He further welcomed the initial statements from several business representatives regarding the creation of a basic social basket and price reductions on those items.

“Several statements have already been made by representatives of the business sector regarding the definition of a basic social basket and achieving price reductions there, which is a good start”, the PM continued.

Kobakhidze voiced hope that this process would continue and lead to concrete outcomes for citizens.

“We hope this process will continue and that, ultimately, we will achieve concrete results - that is the main objective. The issue is complex and difficult, but if there is coordinated work and high social responsibility, then achieving results is possible”, the prime minister concluded.