Our energy security requires systemic solutions.

Compensation for electricity and gas is a temporary solution that buys time, but does not solve the problem.

This was stated by the economist Kuzman Iliev in the "Wake Up" studio. 

"Perhaps it is better that the discussion of next year's budget has not yet started. Because, purely politically, it is a matter of responsibility and when a majority is formed, it must take its policies. On the other hand, the budget that continues than last year, is more conservative. It is more stable and more sustainable in the medium and long term. It does not allow Bulgaria to go into debt. It does not allow us to take a debt with which to pay current expenses, not investments," he emphasized, commenting on the Budget 2023 against the backdrop of the current political situation.

According to him, the great danger facing Bulgaria is that the rate at which indebtedness is occurring is unsustainable.

"At some point, investors and the markets say 'you've lost the reins a bit and we want a higher yield from you to finance you.'

That is, the costs of financing the Bulgarian treasury are growing at a high rate.

It may turn out at some point that we don't have the cash with which to make payments to vital systems, interest that Bulgaria has accumulated over time.

And interest as a share of the economy is getting bigger and bigger".

According to Iliev, there needs to be a balance in relation to the problems in the social sphere.

"You cannot make promises to vulnerable social groups, such as pensioners, without having figured out economically how to subsidize them."  

"I suspect that when the parliamentary debate on the budget begins, that there is a short-term compensation mechanism for the price of electricity and gas.

This is practically inevitable because energy spending has skyrocketed because of the EU's wrong energy policy.

We were more reasonable, but now we will have to support other countries in solidarity.

But if we don't do something systemic, which is to start building capacity to produce more electricity, to keep the coal plants we've committed to closing, if we don't start working on another reactor in nuclear power - these compensations are temporary and palliative.

They are only possible if you buy debt.

You are actually buying time, not solving the problem", he pointed out.