According to economist Professor Gancho Ganchev, the main challenge facing the Bulgarian economy is the insufficient volume of investments, while entire sectors remain in the gray economy and do not pay taxes, reports Bulgaria ON AIR television.
Discussions are currently ongoing around the new formula for determining the minimum wage, which will come into effect in 2027. Representatives of the government, unions and employers are holding a second round of meetings, after the rule that the remuneration should not fall below 50 percent of the average basic salary for the country has already been adopted.
"These negotiations began after the country's development program until 2030 was published. It says that we are abandoning the low-wage model and are moving towards a model of investment and modernization of the economy," commented Professor Ganchev.
According to him, the amount of the minimum wage in Bulgaria remains a serious obstacle to the country's competitiveness.
The expert emphasizes that
Incomes in our country are lower even compared to some countries on the Balkan Peninsula that are not yet part of the European Union.
According to him, the state must come up with a compromise formula, because the problem does not lie in the lack of criteria, but in the insufficient analysis of the effect on market.
The economist is categorical that low wages are a direct consequence of the overall efficiency of the economy.
"The government does not have a body to conduct strategic analyses. There is nothing to rely on, there is only general talk", points out Professor Ganchev and adds: "When our economy is inefficient, the minimum wage will be among the lowest".
As the most serious structural problem, he outlines the low volume of capital investments, specifying that the inflow of larger investments can only be realized in the long term.
The analysis pays particular attention to the concealment of income. The state must urgently seek mechanisms to deal with the gray sector.
"There are entire sectors in the economy that do not pay any taxes.
They should offer us an option to lighten the sector", the expert is categorical. He recommends that the work on the implementation of the current state budget should run in parallel with the preparation of the financial framework for 2027.
Regarding the topic of inflation, Professor Ganchev defines it as complex and often discussed without the necessary competence.
"Our inflation process does not differ much from other countries", he states. The rise in food prices, according to him, is a global phenomenon that is observed even in the United States of America.
"We should not view our inflation as something extraordinary", the economist summarizes, adding that our country follows general global trends, and market processes gradually correct temporary deviations.