site.btaRise in Prices Not Due to Euro, but Result of Natural Economic Processes, Says Prime Minister Zhelyazkov in Burgas

Prime Minister Rosen Zhelyazkov told journalists in Burgas on Tuesday that information that the introduction of the euro is causing prices to rise is completely false news. He explained that the rise in prices follows natural economic processes and is linked to the faster pace of growth, mainly in incomes, compared to economic growth.

“That is why we face a major challenge in preparing the 2026 budget,” the Prime Minister said. "Linking a large part of incomes, not least those in the public sector, to the minimum and agreed wages will lead to a huge increase in expenditure in relation to the preparation of the budget. This, in turn, is a major driver of inflation," he added.

The Prime Minister stressed that it is important to build a symbiosis between economic growth, income, and expenditure, which have a common goal, to make the economy work better.

"That is why the criticism we receive for the debt we have taken on within the debt limit for the 2025 budget is actually unfounded. Because these funds, a large part of them, will go into the economy. They will not go towards payments, social spending, or income," Zhelyazkov explained.

“In other words, we will not allow ourselves to pour debt funds into the system for income in 2026 either. This money will be in the economy for public spending related to infrastructure, related to the development of energy, related to the development of municipalities,” the Prime Minister was adamant.

He also touched on “another point of contention” which, in his words, needs to be dispelled, namely the claim that the Bulgarian National Bank has removed the 5 million limit. "There is no such thing. There is a limit of 5 million for loans to individuals and legal entities. And the investments will mainly benefit municipalities and state institutions," he said.