Vanya Grigorova: Crises are accumulating and society is becoming poorer

Society in Bulgaria is becoming poorer because the series of economic and geopolitical crises is not being resolved, but is accumulating. This was stated by the municipal councilor in the Sofia Municipal Council Vanya Grigorova in the program “Jaws“ on NOVA NEWS, where she debated with the chairman of the General Assembly of the Association of Industrial Capital in Bulgaria Vasil Velev.

The occasion for the conversation was the position of the MP from “Progressive Bulgaria“ Stefan Belchev, that there is no impoverishment in the country. He referred to the increase in the average wage at one of the highest rates in the European Union and the assessment that the economy remains stable.

Grigorova disputed this conclusion and asked why the government is providing compensation for households due to high fuel prices if people's incomes are not decreasing.

„I don't understand how, if it is claimed that there is no decrease in income, why compensation is provided for these high fuel prices for households. The government is contradicting itself in this way“, said Vanya Grigorova.

Grigorova: Crises are accumulating

According to her, the current pressure on households is the result of a series of unresolved problems. She pointed to the COVID-19 pandemic, the Green Deal, energy liberalization, the conflict in Ukraine and tensions in the Middle East.

“These crises are not resolved, they accumulate and multiply“, said Grigorova.

She did not present a specific assessment of the share of households that have fallen into a more difficult financial situation in the conversation, but defended her thesis with the example of the increase in fuel prices and the need for state compensation.

Velev: Incomes are ahead of inflation

Vasil Velev presented a different assessment. According to him, if income growth is compared with inflation, incomes are ahead of it. However, he defined this trend as unsustainable, as it is achieved against the backdrop of a large budget deficit.

„This is unsustainable because it is happening against the backdrop of a large budget deficit“, said Velev.

He also pointed out that last year Bulgaria recorded the largest increase in government debt and that the state is taking on ever larger loans. According to him, this year the deficit is expected to be lower.

Thus, the debate left unresolved the main question of whether income growth compensates for the real increase in the cost of living. The two positions outlined a different reading of the same processes: Grigorova emphasized the accumulation of crises and pressure on households, and Velev - on the ratio between income, inflation and the sustainability of public finances.

Sources: nova.bg