Eurozone Entry Not Linked to Bulgarian Inflation, Says Former Minister

Nikolay Vassilev, a financier and former Minister of Economy, stated that entering the eurozone has no direct relation to higher inflation in Bulgaria. He pointed out that during March, inflation rose due to the conflict in the Middle East, not because of the country's adoption of the euro.

According to Vassilev, even after several months of deflationary periods, including seasonal fluctuations, the current annual inflation rate is around 4%. He believes Bulgaria should be able to handle such a moderate level of inflation, especially considering the country has experienced much higher rates in recent years.

Vassilev emphasized that Bulgaria's economic problems lie elsewhere and that inflation is not one of them. With an average income growth over several years, he argues that some level of inflation is unavoidable, as 'inflation cannot be zero and should not be zero'. He used the example of hairdressers or waiters needing to increase their prices if they receive higher salaries.

Vassilev also expressed his support for a market economy over state control. He believes that in today's economic conditions, with no war and an open global market, there is no reason for the state to interfere with prices. Raising prices, he said, 'is normal market behavior, it is not criminal'.