Businesses expect a 30% increase in prices for goods and services if there is no compensation for expensive electricity.

This was stated by Dobrin Ivanov from the Association of Industrial Capital in Bulgaria in the program "The Day Live" on Nova News.

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The anti-crisis measures of Petkov's cabinet 124

"The lack of compensation means that electricity prices for non-household consumers will escalate twice, which will be reflected in the price of final goods and services very soon," Ivanov said.

He reminded that with a double increase in the price of electricity, from May 2021 to May 2022 the NSI reported inflation of 15.6%. "If the price increases from BGN 245 to BGN 431, we can expect another 15% inflation in commodity prices and services, if there is no compensation ", Ivanov explained.

Asked if he wanted to say "30% inflation", he said "yes".

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Dobrin Ivanov explained that back in May, business and the government agreed to have a long-term mechanism from July 1 to provide security and predictability to business. 

"Today, June 17, we have not yet agreed on such a long-term mechanism," Ivanov said.

According to him, if this does not happen, the price of electricity for non-household consumers will double, which will affect the price of basic products.

Dobrin Ivanov said Bulgaria needs a functioning National Assembly to pass important laws.

"We need to change the legislation in the part of reforms that are set out in the Recovery and Sustainability Plan.

This money, which is set in the budget update - nearly 1.50 billion, will not arrive if we do not undertake these reforms.

In our opinion, the plan for the adoption of the euro from January 1, 2024 is still feasible, but there is still a lot of work and laws that need to be changed, "Ivanov said.

According to him, if elections are held, the situation in the economy will worsen.

"The political crisis is holding back investment.

We have galloping prices, we urgently need laws against this inflation, as well as laws to help the most vulnerable.

"Even if we have a caretaker government, it will organize elections, implement the revenue part of the budget, but we will not have an instrument with which to spend this money and help needy groups of people," Ivanov said.

His fears are also that between the first and second readings of the budget, parties could make a "pre-election update".

"There is a vague majority, each party will offer expenses that will not be covered.

Then we can see a budget with an excessive deficit, with excessive expenditures that are inefficient, just to motivate people to vote for one party or another, "said Ivanov.

The anti-crisis measures of Petkov's cabinet

price increase

electricity for business