Bulgarian Prime Minister rejects Delyan Peevski's idea of price control

Bulgarian Prime Minister Rosen Zhelyazkov emphatically rejected the possibility of the state controlling the prices of basic goods in stores. In response to a question from MP Khalil Letifov from the DPS - New Beginning political party, the Prime Minister described such intervention in the free market as "unacceptable".

Yesterday, Delyan Peevski (the leader of DPS-NB) insisted on state intervention in the market to put a ceiling on markups in stores.

We know how much each product costs. We will put a markup on basic goods so that the merchants will not exceed it. Through the customs agency, we can see how much of something is imported, and how much it costs. So, we’ll set a profit cap, and they will not be able to charge more," Peevski explained his idea to journalists on Thursday.

It seems that the DPS - New Beginning leader is facing resistance from the coalition government, which refused to fulfill another one of his wishes - the reduction of the VAT on restaurateurs from 20 to 9%.

In his response today, Zhelyazkov says that state regulation should only be related to "impermissible concerted business practices and cartel agreements."

I hope that this year the role of regulators in the market for basic consumer goods will be felt. It is very important not to send messages that will sound stupid on the part of the government, such as intervention in the retail market," the Prime Minister said.

He emphasized that any direct intervention by the state in the free market could lead to a shortage of goods, speculation, and ultimately - even higher prices.

This had already happened in Hungary, for example.

Translated by Tzvetozar Vincent Iolov