The measures of the “Radev“ cabinet due to high fuel prices will increase inflation. This was stated in “Speak Now“ by the deputy chairman of the economic committee in parliament and GERB MP Alexander Ivanov.
According to him, the planned aid is “pro-inflationary“ and will not solve the problem with gas station prices. Ivanov also pointed out that he does not see economic logic in the measure and questioned why it is being announced in the pre-election month.
What does the measure provide
According to a statement from the Ministry of Labor and Social Policy, over 550,000 vulnerable citizens will receive a one-time aid of 50 euros due to high fuel prices. The department reports that the compensation is aimed at people and families with low incomes who fall into the social assistance system.
The ministry points out that the aid will cover various groups, including children and young people without parental care, families with children with permanent disabilities, orphans and other vulnerable categories.
The dispute over the effect
Ivanov claims that the measure will not lead to a significant reduction in fuel prices and will burden inflation. He also linked the decision to the upcoming elections, hinting that it could have a political effect.
From the announcement of the Council of Ministers and the statements of Prime Minister Rumen Radev, it is clear that the government is preparing other actions aimed at the most vulnerable groups, including support for public transport, ambulances and school transport.
What has been confirmed so far
It has been confirmed that the cabinet has announced assistance of 50 euros for over 550 thousand people due to high fuel prices. It has also been confirmed that GERB, through Alexander Ivanov, criticizes the measure as pro-inflationary. No final public estimate has been announced in the cited sources on exactly how the aid will affect inflation.
The topic is part of the broader dispute over whether the state should compensate for part of the effect of the increase in fuel prices with direct payments to vulnerable groups or with other measures to control prices.
Sources: BNT, Ministry of Labor and Social Policy, Council of Ministers