KRIB, BFIEK and SMP call on the government to expand anti-crisis measures. According to them, this will lead to the timely control of the inflationary shock created by the conflict in the Middle East. The organizations sent a letter to the Prime Minister, the Minister of Energy, the Minister of Finance and the Minister of Economy and Industry.
"The Confederation of Employers and Industrialists in Bulgaria, the Bulgarian Federation of Industrial Energy Consumers and the Union of International Carriers call on the government to deepen anti-crisis measures in order to timely control the inflationary shock created by the conflict in the Middle East. We are concerned about the increasing likelihood that military actions will continue for longer and develop into a long-term conflict with the potential to last into 2027. The rising prices of oil, natural gas, ammonia and fertilizers threaten the economic sustainability of industry, logistics, agriculture and indirectly hit sectors such as tourism. We draw attention to the fact that in some Asian countries a rupture of the supply chain and a transition of regimes is already expected, they write from there.
"KRIB, BFIEK and SMP assess the measures taken by the government as insufficient in scope and depth, due to the increasing, not weakening, intensity of the crisis. As we have repeatedly stated, the economic logic is for the inflationary shock to be stopped as early as possible along the value chain, namely in production and logistics. In this vein, we call on the government to take the following steps within the week: Updating the amount of compensation for 50 percent of the consumed electricity at a lower threshold of 50 euros/MWh (instead of 63.9 euros/MWh) in energy-intensive industry. It accounts for 26% of the gross domestic product and occupies a key position in the earliest stages of the value chain, with a direct effect on the formation of price levels. The lower threshold of 50 EUR/MWh is widely accepted in Europe and set in the Clean Industry Pact (CISAF). Under this mechanism, over 11 billion EUR have already been notified for other EU countries, while Bulgaria expects to notify only 125 million EUR, instead of declaring the full possible resource of 150 million EUR. The measure is also long-term in nature, as 50% of the funds under the mechanism must be invested in decarbonization. The lack of adequate and timely compensation for energy-intensive industry puts a sector that generates a quarter of the Bulgarian economy at real risk. This will inevitably lead to a loss of competitiveness, a contraction in production and an increase in prices throughout the economy," their position also states.
"Development of a national mechanism to partially compensate for the extraordinary increase in fuel costs for carriers, which would be financed by proportionally increased revenues from VAT on fuels. This measure is likely to be net neutral for the state budget and therefore easily implemented within the framework of the extension budget. Due to low margins in logistics, the sector is both critical for maintaining sustainable supply chains and placed at the center of the value chain, i.e. with a high weight in the formation of price levels. In addition to the fact that both measures can be implemented within the framework of an extension budget, they are also an implementation of the decision of the National Assembly of March 13, 2026 to take emergency measures to limit the economic consequences of high prices of crude oil and natural gas. They are targeted and precise (for logistics they can be further calibrated) in nature and fit into the line of action declared by the government", the three organizations add.
And they conclude: "KRIB, BFIEK and SMP believe that when the conflict in the Middle East turns into a long-term conflict, the negative consequences must and will be borne in a balanced way by the state budget, the public sector, private business, consumers and taxpayers. At the same time, these consequences must be minimized and contained at the beginning of the value chain, before they spread uncontrollably and chaotically as an increase in the price of consumer goods, disruption of logistics chains, bankruptcies of industrial enterprises, dismissal of employees and ultimately - public discontent and chaos".