The deputy from the “Democratic Bulgaria“ Vladislav Panev sharply criticized the idea of creating an interdepartmental body for price control during his participation in “Offensive with Lyubo Ognyanov“. According to him, such a structure risks turning into a “price committee“, reminiscent of practices from the past.
“The fact is that there is a problem with prices, but it is not solved with a price committee or a planning commission from the 1990s“, said Panev. He emphasized that the role of the state should not be aimed at direct intervention in pricing, but at ensuring fair competition.
Regarding the concept of “fair price“ Panev was categorical: “A fair price is the one that the buyer is willing to pay, and the seller is willing to sell“. According to him, attempts at administrative price setting have a long history of failure, followed by higher inflation.
Panev expressed doubt that the legal changes proposed by the ruling party will lead to cheaper food. According to him, the measures are more of a political response to public discontent: “They were introduced as a reaction to the desire to act quickly against inflation“.
Despite the criticism, he also highlighted positive elements - for example, the texts that address the dominant position of retail chains over producers“. According to him, however, the effect will be different: “This will not lead to a drop in prices, but to better incomes for agricultural producers“.
Panev was particularly harshly opposed to the idea of “economically justified prices“, based on costs, and defined it as a remnant of communism. He recalled that such mechanisms had led to severe consequences in the past: “Prices were held back until 1991, and after they were uncorked, inflation exploded“.
According to him, pricing is a much more complex process, with factors such as seasonality and cyclicality. He warned that such texts could become a tool for pressure from regulators on selected traders.
On the topic of expanding control over the market, Panev was also critical - according to him, this would increase the number of state officials. According to him, even a significantly expanded administrative apparatus will not be effective.
Instead, he proposed a more focused approach: “It is better to monitor a few large retail chains and the conditions they impose on suppliers“.
Panev also linked the rise in prices to macroeconomic policy, pointing out that the volume of the money supply increases by billions every year. According to him, government spending is also putting pressure: “You can't pour over 10 billion into the economy and expect there to be no inflation“.
He added that the decline in industrial production further complicates the situation.
Panev described the decisions to remove the security guards by Delyan Peevski and Boyko Borisov as “a good first step towards everyone being equal before the law“.