“The flag should be production, because if we produce three times more tomatoes, their price will immediately be noticeably lower”, commented the executive director of the “Active Consumers” Association Bogomil Nikolov on the air of NOVA NEWS. According to him, the state should focus on stimulating the real sector, instead of relying on administrative measures that step on “absolutely unhealthy ground”.
Bogomil Nikolov pointed out that there is currently an unnecessary debate about what is fueling inflation, while the main factor is being ignored. According to him, “declining production is the main factor” for the current situation. He stressed that the country is producing less and less, while at the same time prices are expected to fall, which contradicts market logic.
The economist believes that politicians always prefer quick results "from today to Thursday" and therefore propose measures that sound good, but do not solve the root of the problem.
Sofia markets were cited as an example of structural distortions in the economy. "There are stalls, but there are no producers to come and sell their tomatoes or cucumbers," commented Bogomil Nikolov. He explained that farmers are often forced to sell their produce in the field for low amounts, and by the time the goods reach the store, their price increases several times because of intermediaries.
According to him, a real mechanism is needed that would allow producers to sell directly to consumers, which would be “a measure that no one will say a bad word about”.
Nikolov expressed concerns that increased control over markups could have the opposite effect and only hinder the economy. He is of the opinion that from all the current plans in a year “there will be nothing left, only the officials”, the economist commented.
He gave the example of non-compliance with the law on the interest rate ceiling for quick loans and the smoking ban to illustrate that “there is a law, but no implementation”. According to him, without an accurate diagnosis of the problem and without stimulating production, any form of state intervention simply “aggravates the market process”.