Should there be a price control mechanism? The topic was commented on in the program “Wake up” by Alexander Sidi from VMRO and Nikola Yankov, economist and former deputy minister of economy.
“The prices of goods are a matter of competition between traders, mainly in sectors where there is a large number of producers and supply. Most consumer goods are like that. If we want a cheaper product, the function of the state would be to stimulate production and the entry of more competitors into this market, and not to establish price control. This would lead to the opposite result - withdrawal from the market, reduced competition and ultimately higher prices and deficit”, said Nikola Yankov.
“We have compared prices. The problem is in the same chain. Traders are setting crazy markups. I will give an example with one oil, in the same chain - in Germany, Greece and Bulgaria the price is different. In Bulgaria the price is 15 leva, in Greece - 7.5. Even in Greece there is a promotion with 59 g. On top. The problem is that here in Bulgaria the last few years the controlling functions of the state have not happened. From there very easily and quickly the chains formed a cartel”, believes Alexander Sidi.
Yankov also commented that the cartel is illegal. “If there is an illegal practice of fixing prices, agreed upon between several traders who have a dominant position on the market and control prices, this is illegal in countries with a market economy, such as Bulgaria. There are serious laws against this in the EU. The fines are terrifying - they reach 20% of the trader's turnover. The Commission for the Protection of Competition is the body that should deal with this”, said Yankov.
“The CPC is not an independent body that stands aside from everything else. It is part of this entire political spectrum in Bulgaria, which has been dismantled in the last few years. It has no control over anything”, said Sidi.