The conflict in the Middle East will have an impact on the entire world economy. On the day of Iran's attack on Israel, the price of oil was one percent higher, and the next day it increased by five percent because of the risk. From now on, it will increase more and more. Prof. Svetla Boneva, dean of the "International Economic Relations and Business" department, explained this on NOVA NEWS. in UNSS.
In this background, according to her, it would be good for the Bulgarian state to turn to the European Commission with a request to extend the effect of the derogation for the refinery in Burgas.
Israel will certainly respond and strike critical infrastructure – either nuclear or one that is related to oil production facilities. That is, we must urgently request a derogation from the EC. At the moment, two of our oil suppliers are impossible as an option for geopolitical reasons, Prof. Boneva added.
As for what the Bulgarian state can do at this moment, she explained that, for starters, excise duties on fuels and oil can be reduced and stockpiles can be increased. And he added that this can happen with a decision of the Council of Ministers, regardless of whether the government is official or regular.
Svetla Boneva also explained that if the Strait of Hormuz is blocked, as Iran has threatened, the price of oil will rise for all goods, because then detours and alternative routes will have to be sought, which will inevitably lead to a delay in deliveries and a corresponding increase in the price of the goods.
In any case, we will be directly affected. The question is what measures will we take as a country to reduce the negative effects that are expected. A thorough analysis is needed on which sectors will be hit and how they can be helped, said Prof. Boneva.
In conclusion, she emphasized that capitalism is not entering a crisis, but a new stage of development in a brand new geopolitical environment marked by conflicts.