The debates have already begun on where Bulgaria will host Eurovision next year. How the historic success will affect the image of our country and how much our economy will gain, financial analyst Deyan Vassilev and economist Vladimir Sirkarov comment in the studio of "Your Day" on NOVA NEWS.
“In economic terms, we will observe the phenomenon of “Daranomics” - this is the economy that DARA and the “Eurovision” phenomenon will bring to Bulgaria. It should not be underestimated”, said Deyan Vassilev. He commented that the organization of “Eurovision” will contribute to tourism, the cultural awareness of Bulgaria, the entire ecosystem of musicians, as well as that the effect of “Daranomics” will help Bulgarian pop artists. “The most important thing is this spirit of freedom that DARA gives, and “Bangaranga” is one of its manifestations. DARA deprives many people of justifications in all sectors”, he also said.
Economist Vladimir Sirkarov commented that at least 30 million euros could cost our country to host “Eurovision” next year. “From here comes a huge challenge related to organizing such an event. We must start actively working and budgeting now, because the costs are serious. If you look at previous ones, they reached 50-60 million euros. On average, the hosting can cost around 30-35 million euros, which is a serious amount, but not that much in terms of potential positives,” he said.
“If we organize a really good event, in terms of media coverage, which is worldwide, not just in Europe, we will have a lot of positives in terms of reputation that will last for years to come. At first glance, the money that will be given by BNT, the municipality, the state and Europe can certainly pay off many times over”, the economist also pointed out.
According to him, the biggest risk is the security measures. “Those related to terrorism must be impeccable. From the point of view of accommodation, I don't think there will be a case. And regarding infrastructure, we need to think about the flows of people,” he added.
“The most important thing is that this success can be a serious catalyst for the music and entertainment industry in Bulgaria. DARA and its team have shown that Bulgarian success is possible internationally”, said Sirkarov.
The interlocutors also discussed the opportunity prepared by the state for citizens to be able to purchase shares in state-owned enterprises. Assoc. Prof. Manyu Moravenov, Executive Director of the Bulgarian Stock Exchange, also commented on the topic. He explained what it means in practice for people to be able to purchase shares in state-owned companies.
”People will be able to invest in the state's economy and, in addition to their savings staying in bank accounts, they will be able to receive higher returns by investing in some of the largest Bulgarian companies. This will also attract many foreign institutional investors”, he pointed out.
Regarding profit, Assoc. Prof. Moravenov commented that on the Bulgarian market, and not only, there are instruments in which profit is guaranteed, such as government securities. “They provide lower profitability, but absolutely guaranteed, as well as a clear horizon. These are the easiest instruments for educating investment knowledge in the population, because there is no risk. If we talk about shares, there is risk in them, but it is related to the company's business. If you know the company, if it is large, has a history and is developing, the probability of losing is not so great, but rather smaller. In the longer term, investing in shares beats inflation, and significantly”, he said.
He also said that by selling shares of state-owned enterprises on the stock exchange, several goals will be achieved simultaneously. “This will provide a lot of funds that can enter the state and be used for various initiatives, and this money is not debt. The other thing is that these state-owned companies will become much more transparent and the decisions they make will be available to many investors. Additionally, this will attract a lot of investment interest in Bulgaria, including from global investors”, said Assoc. Prof. Moravenov.