We don't have a problem with inflation at the moment, I wouldn't want the public to be exposed, said former Minister of Economy Nikolay Vassilev in the studio of “Hello, Bulgaria“.
According to him, Bulgaria is in first place in terms of inflation growth in the eurozone for three reasons - wrong budget policy - with huge debts and deficits; the effects of the war - increasing oil prices; the high growth of incomes.
Vassilev noted that for 30 years the average salary in our country has grown at a high rate - much faster compared to inflation. I don't think that 0.2% in two months is a big problem for Bulgaria. “3-4 years ago and in 2008, inflation was much higher, not to mention during Videnov's time. Budget policy is to blame, if we continue like this, we will have such inflation next year,“, the economist commented.
For him, limiting the debt to 3.8 billion euros, requested by the ruling party, is a weakness. “The government has not given any ideas for the budget. Despite this, it immediately takes on debt in a defeatist manner. Microscopic ideas for reforms were mentioned several times - about 1%. In fact, annual expenses should be cut by about 6 billion euros. At the same time, the government proposed measures worth several tens of millions. The next day, they abandoned them after several negative comments. A political force that for the first time in 30 years has an absolute majority must have the knowledge, courage and will to make reforms. Otherwise, it should go. There is fear at the moment“, Vassilev urged.
Among the urgent measures, the economist highlighted cuts in the state administration (30,000 positions, of which 12,000 are vacant), optimization in the entire public sector. “Ministry could have been 4 fewer, and agencies - by 20%. In Poland, for example, the CPC and the CPC are one commission. Why didn't we close the DAI?“, Vassilev asked.
According to him, the excessive deficit procedure cannot trigger reform if there is no political will. Among the other measures highlighted, according to him, are the abolition of electricity fees, as well as the concession of public infrastructure, headed by highways. “State and municipal enterprises should have been privatized for the most part long ago. They are inefficient and loss-making, and they are also a place to accommodate party people with high salaries“, the former minister believes.
Nikolai Vassilev supported the idea that self-payment of social security contributions for civil servants should be done in parallel with raising their salaries. Regarding the initiative “Basket with Care“, the economist expressed the opinion that communist price control is a waste of time.