Inflation can be fought with income growth.

Freezing the minimum wage is a mistake.

It should increase with the inflation rate, next year it should be over BGN 800.

This was stated by the former Minister of Economy Nikolay Vassilev for "Your Day". 

According to him, high inflation is the biggest economic problem.

"For more than 10 years, half a generation did not know what this concept was. The fixed exchange rate of the leva holds the currency, we cannot have three-digit inflation. If we knew how the war would develop and what energy prices would be, we could predict how far it would go . After September 2020, Bulgaria abruptly reversed its budget policy after more than 20 years of discipline, with which it reduced its public debt. We joined the group of populist countries where the more we spend and borrow, the better. unpleasant years," he emphasized. 

Vasil Velev and Plamen Dimitrov's dispute over the increase in the minimum wage

According to him, it is good to have a normal cabinet with a 4-year term.

"I hope it will be Western-oriented. It is good to have a reformist government to avoid an economic crisis, but the doctrine so far has been to have no reforms. BGN 200 million is the state's expenses for half a day ahead. We tried to withdraw debt, but the financial sector they don't want to occupy it because the state is chaotic and unstable. A budget deficit of more than 10 billion is looming. The rulers hand out billions with a light hand, and I don't like the whole budget policy. Our debt is over 36 billion, after years it may will reach 50-60 billion, if there are no brave reformers of the economy," predicts Vassilev.

The economist noted that unnecessary government spending should be stopped.

"In December, 5 billion were spent without knowing what. We saw the biggest waste of the state budget and chaos," he also said.

And he called not to depend on Gazprom, but to build more interconnectors with neighboring countries.

minimum wage