Inflation in the small consumer basket hits over 10%. There, prices are soaring and there is no force to stop them, because there are no control bodies.
This is what financial expert Mika Zaikova told FOCUS.
The difference between the stock exchange and the final price is huge, she emphasized. "When calculating inflation, the dynamics in fuel prices and in the prices of final products are not taken into account, but on the commodity exchanges. The difference between the commodity exchanges and final products is quite significant due to speculation. 32% is the shadow economy. This means that the control bodies are not working. If they were working well, such a large lag between the stock exchange and the final price of the product would not be allowed. This hits the poor and the small consumer basket“, explained the financial expert.
Therefore, according to her, it is extremely urgent for the deputies and the government to undertake a change in the composition of the commissions of all regulatory bodies. “The first thing I strongly recommend that the government do is to select suitable, qualified, knowledgeable, capable people for the control bodies, and not to choose them on friendly grounds“, emphasized Zaikova.
According to her, the biggest challenge facing the country is the foreign debt. “Our debt is more external, in dollars, and this creates problems because the currency is soaring with the arrival of Trump“, noted the financial expert.
The hole in the budget is large and real. This deficit can only be filled through the development of the country's industry and economy. “In order for there to be development, there must be investments. In order for there to be investments, there must be investors and favorable conditions. It is imperative to talk about long-term contracts and quickly elect the control bodies so that there can be order“, emphasized Mika Zaikova.
The new Finance Minister must reshape the budget in two directions. “One direction is in developing the economy and stimulating private business – not to interfere with it and take its profits, but to stimulate it. In any case, the budget must shrink in its expenditure part. Now we are no longer facing elections and we can afford to be more frugal“, believes Zaikova.