The Parliament has instructed the Council of Ministers to take urgent measures to limit the negative economic consequences of the high prices of crude oil and natural gas. The decision to take measures due to the price shock was submitted by "DPS-New Beginning" and was adopted with 97 votes "for", 20 "against" and 19 "abstains". It was supported by GERB-SDF, "DPS-New Beginning", "There is such a people" and three MPs not members of a parliamentary group. The "Vazrazhdane" voted against it. One MP from "Continuing Change-Democratic Bulgaria" was against, and 16 abstained. Three MPs from "Morals, Unity, Honor" also voted "abstained". Members from "BSP-United Left", "Alliance for Rights and Freedoms" and "Majesty" did not participate in the vote.
The Council of Ministers is expected to develop and adopt measures to support the most vulnerable social groups of the population with incomes below the poverty line, including by expanding energy assistance programs. Regarding support for enterprises and public services affected by increased energy resource costs, the cabinet will have to develop measures and a program aimed at the transport sector, urban transport, medical institutions, schools, kindergartens and nurseries, and agricultural producers.
In order to effectively manage and distribute support funds, it is planned to create a special Fund "Energy Support for Enterprises and Households" at the Ministry of Finance. The fund will administer the funds under the support programs and ensure transparency in their spending.
The fund will be financed through additional revenues in the state budget from the value added tax, realized as a result of the increase in the prices of crude oil of the "Brent" variety and liquefied natural gas.
According to the decision, within its powers, the government can finance the fund through the Bulgarian Development Bank.
For the transport sector, it is planned that the Bulgarian Export Insurance Agency will issue guarantees for the rescheduling of the leasing payments of transport companies until the end of 2026, based on the reported quantities of fuels used in the corresponding month of the previous year.
The reasons for the decision state that the sharp increase in the prices of crude oil and natural gas on international markets as a result of the military conflict in the Middle East has a significant impact on the economy and social environment in Bulgaria.
During the debate, Yordan Tsonev („DPS-New Beginning“) pointed out that we are currently in a scenario according to which prices are between 120-130 dollars per barrel. It is still manageable, the MP noted and reminded that there are already countries in the EU that have taken measures. However, there is a scenario for over $130 per barrel, even $150, we must foresee these scenarios as possibilities for implementation, Tsonev explained. According to him, we are heading towards the severe scenario. The government's capabilities are limited because it has no budget and that is why we are proposing this solution, this is an outstretched hand to the cabinet, because it is about the Bulgarian economy, citizens, business and possibly public finances, defended the draft decision Yordan Tsonev.
Martin Dimitrov from "Continuing Change-Democratic Bulgaria" (PP-DB) reminded that the caretaker government is already working on such measures. The responsible approach now is not such a draft decision, but to have a meeting with the departmental group, with the caretaker Minister of Finance and to continue this conversation next week in order to reach an agreement on the adequacy of the measures, he said. With these arguments, we will not support this draft resolution, because this is not a constructive approach, we need to go into depth, we need to assess the effects now, the MP said.
The Bulgarian economy, business, citizens are languishing, and you say that measures will be in place in weeks. By now, there should have been effective measures, replied Yordan Todorov from "Vazrazhdane".
You admit that the government appointed by you cannot use the tools it has by law, addressed Martin Dimitrov and the MP from GERB-SDF Alexander Ivanov. According to him, the idea of this draft resolution is to push the current government a little to take adequate measures to prevent a price shock. It must ensure that Bulgarian citizens and the economy have guaranteed fuels, the MP emphasized.-
As GERB and "DPS-New Beginning" you are so concerned, go to the energy committee today and vote so that Bulgaria does not lose 437 million euros, replied Martin Dimitrov (PP-DB). We cannot afford to lose such funds in a crisis situation. Rumen Spetsov, who manages "Lukoil" on behalf of the state, was appointed by your government and now you say that you have nothing to do with the price of fuel, he added.
Tsoncho Ganev from "Vazrazhdane" commented that on one side are the liberals from PP-DB, on the other - DPS and GERB. For years, he emphasized, both wings have been pursuing policies in which they explain that commitments to their Western partners must be fulfilled. The draft resolution, submitted by the DPS and supported by GERB, says to provide an opportunity to collect more VAT and to put the excess VAT into a special fund, from which transport companies will be given priority, the deputy noted. That is, none of the households will get anything from this fund, the real solution is to lift the sanctions against the Russian Federation today, according to "Vazrazhdane".
In response, Yordan Tsonev explained that the measures are for everyone affected, not just the transport business.