Low Purchasing Power: The European Economic and Social Committee’s Recipe for High Inflation

by Safaa Hadry On November 03, 2022 at 2:25 pm.

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In a vigil about rising inflation in Morocco, the Economic and Social Council has formulated a series of measures to mitigate the impact of the economic shock on household portfolios. In particular, this involves accelerating the process of granting targeted aid and strengthening price controls in the markets.

Like other countries, Morocco has suffered, since 2021, from the repercussions of a persistent rise in inflation to the great desperation of families who have seen their purchasing power drop dramatically.

To deal with this situation, the Economic, Social and Environmental Council (CESE) has formulated a series of measures to be taken to reduce the harmful effects of the inflationary shock on the national economy and the standard of living of citizens at the last vigil. ..

“For our country, if the significant price increases observed since 2021 remain mainly of external origin, this does not, however, preclude observing the inflationary effects at the internal level, especially since during the last three months of 2022 the increases were In prices spread to non-tradable things. Among these internal factors, the lack of regulation of agricultural markets and the plurality of intermediaries”, emphasizes the European Economic and Social Council.

With regard to measures that must be taken immediately to relieve pressure on families, the Council recommends distributing aid directed to the most vulnerable groups, maintaining customs duties on some basic imported products at low levels, as well as strengthening monitoring of respect for competition in various sectors, especially those related to necessities. Basic and core products, with sufficiently dissuasive penalties in case of infractions.

In the medium term, and with a view to containing the future stages of price hikes, the Economic and Social Council recommends in particular the acceleration of the establishment of the Unified Social Registry (RSU) in order to optimally target aid to the most disadvantaged groups and to study the possibility of creating a permanent stabilization fund in the face of major shocks.

The Board also insists on the need to increase investment in internal storage capacities for energy products and consider possible methods of mobilizing SAMIR’s storage capacity.

It is also related to reforming and organizing areas for marketing agricultural products, studying the feasibility of establishing a national company for maritime transport of goods and establishing an observatory for basic and basic prices and margins. products.

Posted by Safaa Hadry


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