"We may end up with a price police or some kind of inspection with much more extensive powers, including arresting traders or producers for not having fair prices. It is not good to go to extremes".
This was stated by economist Rumen Galabinov to the Bulgarian National Radio.
Yesterday, "Progressive Bulgaria" submitted to parliament a package of specific measures to control high prices in our country. Two bills are planned, related to the CPC and the Consumer Protection Act. The bills will be considered by the budget committee today.
According to Galabinov, the market has the opportunity to achieve equilibrium in prices. However, any administrative intervention in this process hides risks, he warned in an interview for the program "Predi vissy".
"Instead of introducing some kind of market justice, there is a risk of administrative interference and arbitrariness in market relations".
According to the economist, state regulators are doing their job well. Applying only punitive measures, such as administrative ones, does not give the best result, the economist believes.
"What has been happening in the last 2 months is an escalation of the situation related to prices. And it is not just a Bulgarian problem. "All over Europe, all over the EU, all EU economies, including all eurozone economies, are experiencing inconvenience from higher prices because of the war in Iran. At the moment we are suffering from the hardships of two wars that are being waged - in Ukraine and in Iran. That is why we have this post-Covid syndrome at the moment in the economies, that we have fragmented supplies, irregular supplies, mainly of energy sources, where fertilizers and other things came from, where this whole wave of prices in the EU and not only - the world economy is experiencing problems with prices, the US - too," commented Rumen Galabinov.
He explained that the introduction of the euro has little involvement in this process. The root cause and the risks that remain are geopolitical and geoeconomic, and affect our country, the economist emphasized.
According to him, a pricing register is a good idea. He believes that there is a possibility of implementing tax and financial measures. And he gave an example of reducing VAT for food, medicines, fuel or electricity. The other way of compensation is vouchers and social payments for those in need, which would soften the price increase.