“In my opinion, we need to join the eurozone because it is beneficial for us. But this is happening with preparation that I don't see. We are only talking about budget deficit and inflation, but this is not an element of real preparation”, said Ivaylo Kalfin, executive director of the European Foundation for the Improvement of Living and Working Conditions, on the air of the program “Your Day” on NOVA NEWS.
According to him, when we join the eurozone, the main question will be how our country will protect its interests within the framework of the common currency. And he explained that it is about ensuring that labor productivity and income are comparable to those in the eurozone countries. “So that in a crisis, the ECB's measures can affect all countries in a similar way”, Kalfin explained.
He stressed that the state of the economy is of great importance. “When we entered the EU 15 years ago, a Bulgarian worker made one third of what a European worker makes. Now we are a little over 50%, and Romania is already 65%. This is a concrete measure of the economy's performance”, Kalfin explained.
”In my opinion, the economy has long been left to its own devices. That is why productivity in Bulgaria is too low. The transition from a currency board to the eurozone is not great”, Kalfin said.
He also commented on the topic of food prices in our country and the proposals for a ceiling on mark-ups. “There is clearly a problem. It is related not only to the rise in prices, but also to the lack of understanding of what is happening. This is how uncertainty and panic are sown”, Kalfin also said.
“In my opinion, there are two deficits. First, of well-functioning supervisory authorities – both the CPC and the CPC. We see that they become more active when there is a big scandal. I read in the media that there is a concentration of intermediaries in the food trade. This is where these institutions belong, whose thoughts have obviously been directed elsewhere in the last few years with caretaker governments and expired mandates”, Kalfin commented.
“The second deficit is that in Bulgaria food producers are usually small. They would be more effective if they defended their interests together. However, in our country it is very difficult for us to join forces. In Europe, this works. A trade association would help producers much more,” he believes.
He assessed the proposals for a ceiling on the mark-up as dangerous and ineffective. “I don't see how they will be effectively controlled and which intermediaries. This is more of a fairy tale that is unlikely to lead to concrete measures,” said Kalfin.