The ruling coalition "Progressive Bulgaria" has presented the first package of bills that it submitted for consideration in parliament. They are expected to be considered in the budget committee tomorrow at 10:00.
“Some are related to prices, and the others - to the judiciary. On the first topic, we have submitted two bills that provide for changes in the Competition Protection Act and in the Consumer Protection Act. We want people to know how prices are formed”, announced MP Yavor Gechev, quoted by Nova TV.
According to him, there are several factors that raise prices. “Some are justified - the high prices of fuel caused by the wars and logistics channels. But there is also growth caused by speculation. The aforementioned bills aim to minimize risk and eliminate all unfair trade practices that may lead to unjustified overpricing,” he said.
- Law on Protection of Competition
“The unfair practices that are present in the “black list” become 33 - we are adding 20. The concept of proving an excessively high price is introduced. The second aspect of the changes is the so-called traceability register. It concerns wholesale trade - it will document production throughout the chain, but this will not carry an additional burden for traders. When the mechanism works, poor-quality goods will not be allowed onto Bulgarian territory. The third aspect is borrowed from German legislation - a joint monopoly position - when several market entities, regardless of whether they are related in ownership, possess market power that creates price anomalies”, explained Gechev.
- Consumer Protection Act
Deputy Konstantin Prodanov divided the causes of inflation into three groups - external shocks, macroeconomic trends and speculation.
“Price formation in our country has two components - between the manufacturer/supplier and the retail chain. They are within the prerogatives of the CPC. It is precisely the unfair trade practices that we want to combat. We do not want to twist the chains' arms, and for them not to do the same to producers and consumers. In relations with the end consumer, the CPC is competent. Therefore, we propose several changes - with the first, we extend the validity of the Euro Law, which expires in early August. For a year ahead, we are also extending the obligation of retail chains with a turnover of over 10 million euros to continue to provide daily information on the prices of retail items. In addition, we are continuing the requirement for justification when increasing prices. We are doubling the fines that the Consumer Protection Commission has the right to impose,” Prodanov announced.
He also announced the introduction of the concept of “fair price”. “It will be calculated according to the methodology of the Ministry of Economy and does not represent a ceiling on the price or markup, but the value of an item in a normally functioning economy without market distortions. The aim is to have a disciplinary effect on retail chains, as well as to serve as a signal for problems in pricing. All of the measures listed are market-based. We expect them to lead to a significant control of speculative processes in the small consumer basket. There will be a fight against speculation and an end to feasts during the plague,” Prodanov specified.
According to him, the so-called reverse invoices are included in the new proposals for legislative changes.
Gechev also said that the executive branch will have to provide additional budgets for the CPC and the CPC, if necessary, to cover the needs of the commissions. According to him, the government has come up with a mechanism to make regulators work quickly and transparently. And he mentioned that automated systems will report irregularities.
We recall that shortly before the new regular government was sworn in, the leader of “Progressive Bulgaria” Rumen Radev announced that the priorities for the majority were breaking the growing trend in food prices, fighting inflation, adopting a budget, saving the payment under the PVU, electing a new Supreme Judicial Council and its Inspectorate.