After three hours of debates, the Budget and Finance Committee adopted at first reading the legislative changes related to the Competition Protection Commission and the Consumer Protection Commission. According to the ruling party, the goal is to limit unfair trade practices and price speculation.
Former Minister of Economy Nikola Stoyanov commented to bTV that the measures have the potential to yield results, although not immediately.
“The measures are quite comprehensive and are thought out in different directions. The work of the Competition Commission and the Consumer Protection Commission becomes easier, and the new rules can help a market that is currently not functioning normally“, he said. According to Stoyanov, the main problem is the imbalance between large retail chains and Bulgarian producers.
„We have many producers and importers who are economically weaker, and on the other side are very strong entities - the chains“, he said.
According to him, this allows large retailers to dictate the conditions and prices.
„If 100 people sell cherries, but only one buys them, he can set the price as he sees fit“, explained the former minister.
Stoyanov also commented on the criticisms of large retail chains, according to which the new rules will lead to excessive state intervention.
„Retailers will never say: „These measures are good and will reduce our profits“. This is normal“, he said.
According to him, however, there is a risk that the implementation of the law will lead to administrative arbitrariness if the regulators do not work professionally.
The former minister was critical of the state of the Consumer Protection Commission.
“During the previous leadership, the commission lost an awful lot of people and capacity“, Stoyanov said.
According to him, the new powers require a serious strengthening of both the management and the expert staff of the regulators. According to Nikola Stoyanov, it is unlikely that the measures will lead to a real reduction in the price of goods.
“In Bulgaria, we have rarely seen prices that have been raised once go back down“, he commented. He expects the new rules to limit future sharp price increases.
“We should also think about long-term measures – stimulating Bulgarian production and cooperation of producers“, emphasized Stoyanov. According to him, one of the reasons why the topic of prices causes such a strong public reaction is the feeling of lack of control.