Six months before we switched to the euro, the deputies voted on a law that aims to prevent speculation with the prices of basic goods and services.
"These amendments do not address the problems they are aimed at. It is not the introduction of the euro that increases prices and will increase prices, but several other reasons that are not addressed in this law in any way. The reason for the inflation that exists in Bulgaria and is far above the EU average is the catch-up development. There is no way we can get closer to the average European prices and wages if we do not increase the current prices and wages. When we increase wages, we also increase prices, because these wages are part of the price. Wages form the cost price, below which enterprises would not sell, so as not to go bankrupt, said the chairman of AIKB Eng. Vasil Velev in the studio of "Denyat ON AIR".
In his words, the government's budget policy is "unbridled"
The law will not solve the problems
"Huge loans are taken, by increasing budget wages they are poured into unreformed systems on the market and from there into the market for goods and services. This further increases prices. These problems that I have listed cause inflation. This law will not solve the problems, since they are not addressed, on the contrary - it may further increase inflation and cause goods to disappear from the market," added Eng. Velev.
He emphasized that the market economy, prices and their increase or decrease, is determined by supply and demand.
"No one owes an explanation and justification for why they increased or decreased. If they increased them, and the competition offers lower prices, then no one will buy from them and they will go bankrupt. This is a self-regulator. That is why the state regulates monopolies and cartels. Water, heating and electricity are inappropriately included in this law, because there the state sets fixed prices, there is no way for anyone to increase them arbitrarily. While for goods that do not fall into the patrimony of natural monopolies, a cartel is possible there. That's where the efforts should be directed," the guest is categorical.
Will there be a "settlement of accounts"
On the air of Bulgaria ON AIR, Velev asked if anyone could guarantee that the thousands of employees of the National Revenue Agency, the Labor Code and other institutions are in good faith, and that the law will be strictly applied.
"The wordings, no matter how improved, allow for racketeering of business. They create an administrative burden, they can be used as clubs to settle accounts, settle accounts, steal business, force business to do one thing or another. This law comes to respond to speculations about how the euro will raise prices and this law is populism. It does not solve the problem of inflation", he added.
Vasil Velev is of the opinion that the repression against business will lead to an even greater increase in prices, and Bulgaria no longer has the lowest debt in Europe.
"The credit rating increased by less than we expected and by as much as it should have increased for a country entering the Eurozone, and it increased by less because of the budget policy", the guest concluded.