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Petar Ganev: The thinking "let's keep wages low in order to be competitive" is over

Operationally, the budget is manageable and the direction will be more policies for the people, because there is a resource, but it must be managed smartly, the economist believes

Jun 17, 2024 11:25 75

Petar Ganev: The thinking "let's keep wages low in order to be competitive" is over  - 1

We are waiting for the regular convergence report, which will tell us that we are not ready for the Eurozone.

This is what the economist Petar Ganev from the Institute for Market Economy told BNR.

If there is no government that leads the talks at a high level and a consistent policy, it is very difficult to chaotically, with steps from today to tomorrow, move towards the Eurozone, according to the economist.

If we think of it as a trough, we are almost in it, but we have to stay there for a while, he explained about meeting the inflation criterion.

When asked what are the risk factors for inflation, the economist explained that there is a dispute as to whether volatility is still possible in Europe given the current geopolitical instability.

The adoption of the Law on the Euro is the last regulatory step before membership, Ganev noted.

"Rather, the big question will not be there, but in the political consensus and the fulfillment of the criteria."

The next finance minister will have a bigger pizza at his disposal, comments Petar Ganev.

"Operationally, the budget is manageable" and the direction will be more policies for the people, because there is a resource, but it must be managed wisely, he stressed.

Wages continue to grow at a good pace – both in the public and private sectors, the economist reports.

"The mindset of "let's keep wages low to be competitive" finished."

On the subject of the PVU, Petar Ganev emphasized the long-term importance of the reforms and policies included in it.

"Even if this plan disappears, and it will disappear in 2-3 years, we must continue to follow this framework."