War, high electricity bills, fuel prices and inflation - these are the topics that are increasingly worrying Bulgarian citizens. Former Minister of Economy Nikola Stoyanov commented on them to bTV, analyzing the economic situation and the risks facing the country.
According to Stoyanov, many people in Bulgaria have received significantly higher electricity bills. “Fortunately, I am not among them, but I have many friends and acquaintances who really received bills two to three times larger than normal“, he said. According to him, the explanations for a cold winter do not sound convincing. “The difference between a milder and a harsher winter are objective things. There is no way that one or two degrees lower average temperature will lead to two or three times larger bills“, commented Stoyanov.
He emphasized that the problem is also institutional. “Once again, this shows that our state is not functioning as it should – institutions and regulators are not built in a way that guarantees justice.“
Stoyanov compared the situation in Bulgaria to a boat facing a series of economic shocks. “Bulgaria is currently like a boat facing big wave after big wave“, he said. The first “wave“ is related to the speculative increase in prices around the process of joining the eurozone. “The entry into the euro was used speculatively by many suppliers of goods and services since last summer“, Stoyanov explained.
According to him, inflation has already begun to calm down, but a new external factor is emerging - the geopolitical crisis. “Just when there is light at the end of the tunnel, the next big wave is coming - the external factor, which will again give a motive for prices to rise.“ Regarding fuels, Stoyanov pointed out that the price increase is often due not only to real economic factors. “All this plus the desire of many traders to make a quick buck”, he said. According to him, the problem in Bulgaria is also the lack of effective control. “In Bulgaria, because the regulators are not working, every factor for price increase is used to raise prices twice as much as they should be.“
Stoyanov also expressed concern about the management of Lukoil's refinery in Bulgaria. “I heard from experts that for nine months the loss was about 52 million, and for the last three - 58 million, and that was before the crisis with Iran“, he said. According to him, such enterprises require very specific management experience. “Only people from the enterprise itself or specialists with international experience can manage such a company.“
According to Stoyanov, if the crisis in the Middle East drags on, the sanctions regime may change. “If the crisis lasts longer, there will be no other way out - we will have to move towards loosening the sanctions“, he believes. He stressed that every country must protect its own economic interests.
„Bulgaria's interest is to have cheap fuels, as we have traditionally had.“ Stoyanov also explained why official inflation data often does not match people's perceptions. „One of the reasons is the large share of the gray sector, especially in services such as hairdressing or cosmetics“, he said. These prices are often not reported in statistics.
„There are many services that we all use and do not receive a receipt for. Inflation does not measure their price increase.“According to Stoyanov, the long political instability also has a serious impact on the economy. “The political crisis of the last four or five years has led to the feeling that everyone can do whatever they want“, he said.
When asked if he would run in future elections, Stoyanov said he had no such plans, despite having worked in caretaker governments of Rumen Radev. “I do not intend to run for office. I prefer to maintain my position as an expert“, he said.