site.btaDeputy PM Ninova: Country's Economy Doing Fine

The country's is doing fine economically, outgoing Deputy Prime Minister and Economy and Industry Minister Kornelia Ninova said on bTV on Tuesday. According to Ninova, industrial output has grown by over 20%, construction and the production of construction materials has expanded by 5.8% despite the war in Ukraine and the serious economic crisis in the region. Gross domestic product has gone up by 4.1%, she added.

Ninova believes that inflation is due to external factors. "There are countries with higher inflation than in Bulgaria due to the Ukraine war," she noted. Therefore, she said, the first step to curb inflation should be to reduce taxes and boost incomes. "We lowered VAT on fuels, removed the excise duty on natural gas, set zero VAT on bread, made kindergarten attendance free of charge as of April 1; there are tax incentives, a pension rise, 200 leva vouchers for workers, free medicines for children and free schoolbooks," the Bulgarian Socialist Party (BSP) leader said.

The BGN 0.25/litre discount on fuel is intended for people of lower income, she said, adding that the measure is working well. Discussing the opposition's proposal to set a cap on fuel prices, Ninova said that the BSP is in favour of it but has not been supported by its partners in the government coalition, although what is proposed is common practice in Europe. Continue the Change and Democratic Bulgaria fear that once the cap is lifted, prices may soar, she explained.

Following government intervention, large chain stores are able to keep the price of bread 20% lower than it was until recently. Bread discounts of 16-17% are already observed in smaller stores as well. "This is a long-term measure, not a temporary change, and it has been done for the first time in Bulgaria," Ninova said.

"In the economy and social policy, things are going in parallel: taxes are cut while incomes are raised," she said. "This kind of social policy had not been implemented for a long time. It is therefore very important to have a government and a functioning parliament so that we can deal with inflation. If we have a caretaker cabinet, we will be unable to cope."

If President Rumen Radev hands the third government-forming mandate to the BSP, "we will hold talks and we will try to put together a cabinet," Ninova said, adding that with patience, reason and cogent arguments the Socialists will try to bring There Is Such a People and Continue the Change back to the negotiating table, because the coalition programme is good. "We did a good job and I think we can move forward," she said.

"We are a part of this government and we have the right to take a stance as to who should be prime minister, but we do not meddle in the work of the other parties. The Coalition for Change should remain," Ninova argued. According to her, the future prime minister should be proposed jointly by all negotiating parties. "The prime minister should be from the largest political force, while the retention of ministerial seats is subject to discussion."