According to economic indicators from the last 5 years, inflation is 40%, and incomes have increased by 90%, is your salary double? Salaries have increased in some NGOs or public procurement workers. Prices in Bulgaria are rising for objective reasons – rents have jumped, energy resources, look at the gas, said in an interview with the Bulgarian National Radio Kuzman Iliev, economic analyst and founder of the "Bulgaria Can" party.
According to him, this is happening because of a wrong policy that produces an artificial increase in wages, and the state incurs debt – raises wages and competes with the private sector, which raises at a faster pace than working capacity:
"Our imports are falling, the environment is poisonous and wrong. The basis is the huge deficit and the distribution of loans by banks."
On 12+3 Iliev commented on the answers from the BNR poll on how and whether the government will deal with prices. His assessment is that Bulgarians have an exceptionally good intuition:
"With administrative acts, laws and salaries, there is no way to push prices down if good conditions are not created in Bulgaria to produce more – more goods and cheaper. But this depends on good governance."
The economic expert is categorical that inflation comes from debt and banks that give out loans to young families.
"Galub Donev said - we will raise the debt ceiling and they are expected to give out money and this pumps up inflation. If they don't give out money, people will say, "you promised, right?". Centuries ago, there was no such battle that could bring the fight against inflation to a successful conclusion when it is not understood what causes it. Yes, a few large merchants have 60% of the turnover, they have an advantageous position, but in general in Bulgaria they are not the only problem. In our country, speculation is impossible if there is no engine – that is most of the money", recalled Kuzman Iliev.
He pointed out that with Bulgaria's entry into the eurozone, 15 billion leva were released from the banks' mandatory reserves, now this mandatory percentage is 1 and "the banks have a lot of money and are giving out loans, look at their record profits":
"There is still free money for loans and we are seeing a dangerous distribution of mortgage loans and the growth of indebtedness is 30%. We have a problem in the banking system - loans to young families. We are entering the perfect storm in terms of external factors and poor management of public finances. And if we don't realize it, we are heading towards Videnov's time."
Kuzman Iliev pointed out that the government does not have 100 days and warned:
"These problems require clarity, what is causing them, bold decisions in the state - to clear unnecessary expenses in order to give a signal to business. Bulgaria will enter an excessive deficit procedure - like with Videnov, but something worse."
He is categorical that we must stop with the wild populism, the government's rampant debt:
"Bulgaria does not need to give 3.5 billion for a gunpowder plant of "Rheinmetall", which is not Bulgarian, Bulgaria does not need to give billions for missiles when there is no money for highways, pensioners and to water its agricultural production. Bulgaria must focus on its own problems."