Combine failure to pay your debts and price controls by the government and what (don’t) you get?

Medical drugs. Greeks can’t obtain any.

The pharmaceutical industry says many shortages are because of products being exported through parallel trade, and has urged the government to address set drug prices. Under EU trade rules, the free movement of goods is allowed. So for example, while a pharmaceutical company may sell a medicine to a wholesaler or pharmacist in Greece, the wholesaler or pharmacist can sell these medicines on to wholesalers in other countries. Parallel traders do this to make money on the price differences between countries.

“The government needs to correct these wrong prices to avoid a surge of exportation. Greece’s drug prices are 20% or more lower than the lowest prices in Europe,” said Konstantinos, who is also the general manager of Novartis in Greece.

The industry wants the health ministry to bring in a new pricing system so that Greece uses a basket of eurozone countries to calculate prices. At present, medicines are priced at below the average of the three lowest prices in 22 EU countries.

The regulator has introduced export bans for nearly 60 medicines to try to tackle the problem and is looking at 300 more products. It is also investigating 10 wholesalers and 260 pharmacists who it believes have broken the export ban. The ministry of health will decide any punishment, which is likely to be fines ranging from €2,000 to €20,000, said Tountas.

Regressives just won’t realize that merely passing a civil law does not repeal the laws of nature. Nor inevitable consequences.

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2 responses to “Combine failure to pay your debts and price controls by the government and what (don’t) you get?

  1. Tawm

    nor laws of economics

  2. You see this in the middle east where countries subsidize the price of gasoline down to 25 cents a gallon. There are constant shortages because so much is smuggled out to countries where it can be resold for a market price. And of course any discussion of cutting the subsidies cause huge political unrest. Rather like discussing phasing out the mortgage interest deduction does here.