site.btaMedia Review: June 10

The topics of the Government’s measures to curb rising prices in Bulgaria and handle the budget deficit dominate Wednesday’s news media.

ECONOMY

Trud has an interview with economist Stoyan Panchev, who comments on the Government’s measures to bring the prices of basic food products down. According to him, the draft amendments to the Competition Protection Act and the Consumer Protection Act put forward by Progressive Bulgaria will lead to a revision of markups and lower prices for consumers, but the results will also depend on the capacity and willingness of the Commission for Consumer Protection and the Commission on Protection of Competition to work. The daily recalls that the draft revisions are expected to be adopted conclusively this week; they call for a ban on excessively high prices charged by companies with a joint dominant position, as well as an extension of the ban on unjustified price increases. Given the deficit of some 9% for 2026, the only way forward is fiscal consolidation through civil service layoffs, a freeze on pay raises, and across-the-board spending cuts, Panchev believes. "Key officials at the Ministry of Finance, the National Statistical Institute, the Bulgarian National Bank, and the Fiscal Council were involved in the manipulation and cover-up of the financial problems; they must be the first to be dismissed. The cuts will have a positive impact not only on the fiscal situation but also on the labour market, which needs personnel in key industries. This opens the door not only to comprehensive personnel reform in the public sector, which has long been used as a political feeding trough, but also to major reforms across various sectors, including social, educational, healthcare, municipal, and other systems. The Rumen Radev Government will make the biggest mistake if it acts too slowly and too cautiously," Panchev argues.

In an interview for Telegraph, Fiscal Council member Lyubomir Datsov comments that the Government’s anti-price-hike measures are all talk and no action. The former deputy finance minister criticizes the draft amendments to the Consumer Protection Act. "Apart from bringing shame upon ourselves through incompetence, there is no other effect. Nor can you slow down price growth, because the factors are entirely different. The main factor driving price growth in Bulgaria is the outpacing growth of incomes," the expert explains, referring to the jump of up to 25% in personnel costs in the public sector. He estimates that the country has a significant structural deficit of over 3%, which has been accumulating since 2021-2022 due to the practice of spending more than the economy can afford. To stabilize the budget, it will be necessary to optimize nearly 3 to 4% of government spending. According to him, the adjustment should be made solely through spending cuts, not by raising taxes. Datsov explained that the rapid growth of the debt is simply a consequence of these deficits and the problem will disappear automatically once excessive spending is stopped.

On bTV’s morning show, Vasil Velev, Chairman of the General Assembly of the Bulgarian Industrial Capital Association, commented on the budget deficit by saying that the tax system should not be changed as it is perhaps the only system in Bulgaria that works well; Bulgaria is among the countries with the highest-rated tax regimes in Europe. In his view, the problem lies not in taxes, but in rising expenditures and the insufficient effectiveness of public investments. Atanas Katsarchev, chief economic expert at the Podkrepa Labour Confederation, argued that the current model places the heaviest burden on people with low and average incomes. He believes Bulgaria should consider introducing a fairer tax model, including a tax-free threshold for the lowest incomes. Differences between employers and trade unions also emerged on the issue of the pension system. Velev cited data showing that the ratio of pensions to labour income in Bulgaria is higher than the EU-average, but Katsarchev emphasized that nearly half of pensioners receive minimum pensions and struggle to cover their living expenses.

On Bulgarian National Television’s morning show, former economy minister Lydia Shouleva commented that there is a need to seriously reconsider budget expenditures, because the last years saw big spending on the public sector, not just state administration. However, she does not agree with the introduction of progressive taxes in Bulgaria's tax system. According to economist Prof. Boyan Durankev, the big picture is not dramatic, but there are many dark clouds on the horizon. He warned that the Government must act without panic and not make immediate cuts to the state administration but rather assess exactly where to reduce spending. He is optimistic that a balanced budget can be achieved next year with wise management. Continue the Change leader and former finance minister Assen Vassilev commented that the economy is growing by 3%. According to him, since 2021, the Bulgarian economy has been the second-fastest growing in the European Union. "If you produce something, someone has to buy it. All over the world, consumption is the engine of the economy. This goes hand in hand with production. We have seen both happen here. In 2022, we ranked first in production growth in the EU. When liquidity is injected, the economy does not collapse," Vasilev said. He also commented on how consumers can influence the rising inflation and whether the minimum wage should be increased.

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Duma reports that three agricultural industry organizations are warning the incumbents' Care Basket initiative creates a risk of the burden of the initiative being shifted onto Bulgarian farmers. The initiative calls for at least 30 products from the basic consumer basket to be reduced by at least 15% over a minimum of six months. A letter sent by the Fruit and Vegetable Branch Chamber, the Bulgarian Association of Greenhouse Producers, and the Bulgarian Rice Association to Prime Minister Rumen Radev and Minister of Agriculture and Food Plamen Abrovski reads that the three organizations support the efforts to ensure more affordable prices for Bulgarian consumers, but at the same time warn that only one day after the initiative was announced, they received reports from Bulgarian producers that they were being pressured to cut their supply prices by exactly 15%. Producers were allegedly told that failure to accept the condition would result in the termination of purchases of their products. "This is an extremely worrying signal, showing that once again the cost of such an initiative risks being borne by Bulgarian agricultural producers against the backdrop of continuously increasing production costs in the sector," the industry organizations said in their letter.

Segabg.com quotes Agriculture Minister Abrovski as saying on Wednesday that there will be "severe punishment" for retail chains that, as part of the Care Basket initiative, pressure their suppliers to lower prices. Reacting to Tuesday’s letter from three agricultural industry organizations, Abrovski said: “I have ordered an investigation, and if anyone has indeed taken it upon themselves to abuse the Government’s good initiative - and anyone who dares to exploit people’s fears and hopes - will face severe punishment."  However, he expressed doubt that there is pressure on suppliers. "I do not think any of the retail chains would risk such a bad reputation - by accepting the Government’s helping hand one day and then extorting producers the next." He specified that one of the conditions is that the 15% price reduction be borne entirely and solely by the retail chains, and the other condition is that it apply for the most part only to Bulgarian products.

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Telegraph reports on its front page that the prices of electricity and heating are going up as of July 1. According to the Energy and Water Regulatory Commission's estimates, the price of electricity for households will increase by an average of 2.99%, while the price of heating will rise by 4.58%.

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Trud’s front-page article reads that over 400 medicinal products are missing from the pharmacy network. Nikolay Kostov, Chairman of the Association of Pharmacy Owners, told the daily that a check of the system shows 383 prescription drugs and another 50 over-the-counter drugs are unavailable. By comparison, the Specialized Electronic Tracking and Analysis System (SESPA), which has been criticized by pharmacists, shows a shortage of only 57 medicinal products. Kostov specified that the most significant shortages are in medications for the nervous system, the digestive system, and the cardiovascular system. Affected are patients with mental disorders, diabetes, and cardiovascular issues. There are missing antibiotics as well. According to Kostov, the reasons for the shortage lies in the ongoing export to countries where prices are higher, the low prices on the Bulgarian market for foreign companies, as well as production problems at pharmaceutical companies. Pharmacists told the daily that the SESPA system does not effectively solve the problem of drug shortages. It does not even register all the medicinal products missing from the market. As a result, patients resort to risky online purchases.

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On bTV’s morning show, Financial Supervision Commission (FSC) Chairman Vasil Golemanski commented on the FSC’s decision on Wednesday to revoke the license of the DallBogg: Life and Health JSC insurance company. The revocation means that the company is no longer authorized to sell new insurance policies either in Bulgaria or within the European Union. Golemanski assured the thousands of customers wondering what will happen to the insurance policies they have purchased and whether they will receive compensation in the event of a claim, that the company remains obligated to honour all existing contracts, including on third party liability insurance. If the company's funds prove insufficient to pay out compensation, the Guarantee Fund mechanism will be activated. Financial Supervision Commission representatives have already taken over management of DallBogg. Upon entering the company, they found that all employees had been laid off, but they have the authority to hire new staff and organize the processing of claims and damages, Golemanski said. He assured that there is no risk to the clients of the pension company DallBogg, as it is a separate legal entity and is in a stable financial condition.

POLITICS

Approached by bTV on Wednesday morning, Defence Minister Dimitar Stoyanov said that Bulgaria will no longer provide free of charge weapons and ammunition from its military stockpiles to Ukraine. According to him, the decision is in line with the position that Progressive Bulgaria has maintained since the election campaign. He underscored that if Ukraine wishes to purchase Bulgarian weapons, this can be done through the Bulgarian defence industry. When asked whether the Government was contradicting the National Assembly’s decision to provide military aid to Ukraine, Stoyanov stated that the document stipulates that aid should be provided only if Bulgaria is able to do so. “The provision of equipment is made upon request from the Ukrainian side and when Bulgaria has the capacity to do so. We believe that this capacity has already been exhausted,” he said. The Minister noted that since taking office in early May, he has not received any specific requests from Kyiv for new shipments.

On Nova TV's morning show, sociologist Kolyo Kolev, journalist Emiliya Milcheva, and media expert Diana Damyanova commented on the Rumen Radev Government’s stance on the war in Ukraine. Kolev said that the stop to military aid to Ukraine is completely expected development and a continuation of the line that Radev has been advocating since the start of the war. In Kolev's words, the Government is seeking to avoid direct confrontation with the European Union, but at the same time is distancing itself from the tougher stance taken by some European leaders. Many Bulgarians are also asking why the country should continue to contribute to the financing of the conflict, given that even the United States is scaling back its involvement, Kolev noted. Milcheva described Radev’s stance as the most consistent of his political career. In her view, however, Bulgaria is increasingly finding itself in the minority among European countries on key issues related to Ukraine. Damyanova, too, saw nothing new in the stated policy on Ukraine. In her words, Bulgaria is not currently providing any significant direct military aid, while arms manufacturers continue to operate at full capacity and fulfill international orders. “This is more of a message for domestic consumption. No one has said that we are stopping arms sales," she underscored.

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Dnevnik.bg presents the findings of an opinion poll on security and defence topics conducted in May at the request of the European Council on Foreign Relations. The poll shows alignment with the European line on increased defence spending, with a priority on funding European companies, but also a persistent mistrust of EU and NATO partners. In all surveyed countries, US President Donald Trump was cited as the main culprit for rising fuel and energy prices, but Bulgaria was the only one where a significant share of respondents blamed the EU, Iran, and the Bulgarian government in equal measure. Bulgaria also stands out for the large number of respondents who answer "I don't know" to key security questions. It is the only one of the 15 European countries included in the study that does not believe any of its European partners would come to its aid if it were attacked. Just under 18% believe the US would come to Bulgaria’s aid, and 14.9% consider the US an opponent of Bulgaria. Asked about Ukraine, the largest share - 37% - said they did not know what that country is to the EU, and 19% saw as an opponent with which there is a conflict. Asked if they are worried about certain future events in their daily lives, 78% of Bulgarians ticked “a major economic crisis in Bulgaria,” followed by 62% for "Donald Trump’s United States will drag Bulgaria into a war with another country" and 60% for "a major European war, not just in Ukraine." Fifty-four per cent of respondents expressed concern about serious consequences for Bulgaria from climate change, and 57% expect a migration crisis in Europe and a further weakening of democracy in the country.

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Capital.bg has an analysis of the Baba Alino scandal, in which a joint operation by police and municipal authorities in Varna’s Baba Alino area in late May found 104 buildings on a forest plot of 10 ha allegedly constructed - or under construction - without permits, along with unauthorized roads, sewerage systems, and transformer facilities. According to the analysis, the Baba Alino case is one of those which are more than just news stories - they are an X-ray of the State. “Not of a single administration, not of a single mayor, not of a single chief architect, not of a single investor, but of the entire mechanism through which lawlessness first emerges, then grows, then is sold off, and finally someone asks in surprise, ‘How is this possible?’” At first glance, it appears to be a case of illegal construction, but the real question is not merely whether there are illegal buildings. The real question is how 104 buildings could appear in the forest between Varna and the Golden Sands resort without the State noticing them in time. One hundred and four buildings are no longer an oversight but a system. The analysis notes that Baba Alino is not just a Bulgarian peculiarity - similar cases exist in other countries, such as Spain, Greece, and Italy. International experience points to several possible outcomes, but none of them are easy. The first option is a strict administrative approach - halting construction, prohibiting access, and demolishing all illegal structures. The second option is conditional regularization, but only where this is legally possible at all, which requires checks of every single building on site. The third option is to protect buyers not by legalizing what is illegal, but by holding accountable those who built, sold, certified, brokered, or failed to act. The fourth option is the most dangerous - a political amnesty granted under pressure from the fact that people have already made their purchases, without any checks of the buildings’ safety. “The correct answer is more difficult: individual verification, clear accountability, protection for bona fide buyers, and no reward for those who have turned illegal construction into a business model,” the analysis concludes.

Bulgarian National Television’s morning show reported of a new construction scandal on the Black Sea coast, this time in Sinemorets. The issue concerns a plot of land near Butamyata Beach; it is nearly 3.5 hectares of municipal property that was leased through a public auction to establish a campground for campers, RVs, and tents. A check is underway to determine if the necessary procedure was observed and what the actual plans for the plot are.

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24 Chasa has an interview with Popovo Mayor Lyudmil Vesselinov on the occasion of the Day of Popovo, June 10. Vesselinov, who is serving his ninth term in office, says that there is a need for an administrative reform in Bulgaria, and the parliamentary majority has the power to make it happen. He is a member of the Bulgarian Socialist Party, which did not make into the new parliament, but he does not believe the new incumbents of Progressive Bulgaria would divide municipalities into theirs and others’. “I see them as better statespersons than politicians. Despite establishing local party structures, I expect them  to be statespersons, which means they should think about the citizens. “Why should I be a BSP member and have slightly different views than my party’s, as confirmed by the 2023 local election results? Mayors should not be polarized by party, should not think like party members, because their tasks are not party-given ones that would help them in their work as mayors. This is my experience as a mayor for nine terms in office,” Vesselinov tells the daily. He presents his ideas for Popovo’s development during his remaining time as Mayor.

CULTURE

24 Chasa reports on its front page that Bulgaria has applied to UNESCO for the inscription of seven Roman fortresses along the Danube on the UNESCO World Heritage List. The application will be considered at the organization’s 2027 session. Also on the application are the Rose Valley in Central Bulgaria, including the rituals of rose-picking and distillation practices, and yogurt making. The daily notes that the ancient sites of Perperikon and Heraclea Sintica are not included.