Daniela Bobeva: Wage increases are fueling inflation, they should not continue

„Bulgaria needs a regular government that will ensure stability at least until June 2026“, said Daniela Bobeva, an economist and former deputy prime minister in Plamen Oresharski's government, on bTV.

According to her, the political instability in recent years has already caused serious damage to the country's economy and fiscal policy.

„It is very difficult to talk about the economy in this terrifying political environment - both domestic and international”, Bobeva emphasized.

According to her, Bulgaria has been in a state of political uncertainty for more than five years, and this is leading to a refusal to implement reforms.

„Nobody is being reformed. If something is being done, it is temporary and without a strategy“, the economist added.

Bobeva believes that a regular government is extremely important for the successful completion of the technical processes for the introduction of the euro.

“By June 2026, all technical stages of the euro will be completed. People will see that this is not the end of the world, and the economy will react more calmly“, she commented.

Regarding the future 2026 Budget, which will be the first in the euro, Bobeva warned that the biggest risk is imbalance through reckless spending.

“Bulgaria is financially stable, but only if spending is kept low. A realistic budget means a realistic economic forecast and limiting inefficient spending,“ she emphasized.

The former deputy prime minister also pointed out that the lack of reforms in the expenditure side and the failure to clarify the economy are some of the most serious weaknesses of fiscal policy.

According to Bobeva, the state can no longer be a “mother feeder“, and increasing wages would lead to a new wave of inflation.

“The moment you increase incomes, you pump up inflation. We have already seen it in recent years. We need to start thinking realistically“, she said.

Daniela Bobeva pointed out that Bulgaria should abandon automatic fixed payments and direct resources to real investments in infrastructure, water supply and irrigation systems.

“If we do this, we will not pay 6 leva for cucumbers and tomatoes. The budget is not a goal, it is a means for policies“, she added.

Bobeva believes that a deficit of 3 to 5% is not a problem, as long as the funds are directed to investments, and not to salaries “that have not been earned“.

“The clouds over the Bulgarian economy are getting thicker. We are a welfare state, but we can no longer afford it. Courage and strong parliamentary support are needed to stop fiscal irresponsibility“, Daniela Bobeva summarized.