One of Lenin's quotes is that a country in which police officers earn more than teachers is a police state. This was said on the air of “Crossroads” on "Nova TV" by financier Levon Hampartzumyan.
Food prices will remain high next year as well. The reasons are the increasing labor costs of local producers, as well as high import prices. Against this background, wage growth will slow down due to the private sector's desire to maintain its competitiveness. These are some of the conclusions in the EC's autumn macroeconomic forecast for our country next year.
According to Hampartzumyan, the budget is designed to satisfy as many future voters of the ruling party as possible. “Nobody says this, but it's the truth. Because politicians have two goals - one is to have access to the distribution of public money, the second - by doing this, to get elected again”.
The financier is of the opinion that there is more than one way to make the budget. “The bad thing is that it is deficient”.
“The government says that next year it will no longer do these things. But we do not know what macroeconomic and geopolitical situation we will find ourselves in. Making a budget sensibly is in good years, like the ones we are in right now - the economy is growing and the debt is still low”, he explained.
According to Hampartzumyan, we are in the paradoxical situation of the public sector paying higher salaries than the private sector. “This is not natural”.
Inflation and the “pitfalls” in the financial framework planned for next year
“Bulgaria still has a fairly low external debt. We are entering the eurozone, we have growth. Foreign banks will give us credit, but one day the coupon will end and the bill will come. Then, if we have nothing to pay with and this money has not been invested in something that generates new income, we will have to tighten our belts again and reduce pensions. Something similar to the situation in Cyprus, Greece and Romania will happen”, he commented.
The financier explained that economic difficulties, when a person is used to having a wider neck around his neck, are not pleasant.
Hampartsumyan also commented on Kristalina Georgieva's words about the real estate market. “The incredible expansion of mortgage lending hides risks, because the real estate market is the first to fall when crises or stagnations occur in the economy. It is also the last to remain, but we cannot eat bricks and tiles”.
“In Bulgaria, we have the understanding that we must own housing. If a person intends to live in it, he has slightly overestimated his capabilities, but he will survive. But the one who has taken it for investment should know that he is investing in an extremely volatile and susceptible to all kinds of external influences sphere. And he can lose a lot of money”, warned Hampartzumyan.