Economist and former MP Georgi Ganev has sharply criticized the recent amendments to Bulgaria\u2019s Euro Law, warning that the changes are likely to trigger a widespread price shock rather than curb inflation. In an interview with the Bulgarian National Radio, Ganev said the amendments will push prices higher than they would have risen under normal market conditions, blaming the state\u2019s misguided intervention for the anticipated surge.<\/p>\n
According to Ganev, the price increase will not be gradual inflation, but a sharp, one-off jump affecting all goods and services. He argued that traders are likely to raise prices quickly and significantly ahead of the law\u2019s implementation in October, fearing potential penalties for future price hikes once the new rules are in force. This anticipatory behavior, he said, will lead to steeper increases in the coming months than would have occurred without the legislative changes.<\/p>\n
\u201cThe new law creates a situation in which everyone in the market will try to cover themselves,\u201d Ganev explained. \u201cInstead of letting prices evolve naturally, businesses will act out of fear – raising prices now to avoid being punished later. And because the law is set to remain in effect for a year, we can expect another price spike a year from now.\u201d<\/p>\n
He emphasized that the very design of the law defies economic logic. Prices, he insisted, reflect the point at which a product or service can be sold – not something that can be dictated or capped by legislation. \u201cThere\u2019s no market rationale behind these changes. If prices rise, it will be because of this law – nothing else,\u201d Ganev said bluntly.<\/p>\n
Ganev also took aim at the government\u2019s plans to launch \u201cPeople Shops,\u201d a state-run retail network meant to provide affordable goods. He was skeptical of the initiative, highlighting the limited capital behind the project. \u201cTen million leva isn\u2019t enough to open even a small store,\u201d he said, adding that the funding will most likely be spent on salaries for staff appointed to oversee the project until the whole effort is eventually abandoned. \u201cIt looks like this whole \u2018People Shops\u2019 idea is just a front – another place to give jobs to some people for a few years,\u201d Ganev concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"Economist and former MP Georgi Ganev has sharply criticized the recent amendments to Bulgaria\u2019s Euro Law, warning that…\n","protected":false},"author":2,"featured_media":58489,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-58488","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/58488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=58488"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/58488\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/58489"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=58488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=58488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=58488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}