Is the idea of creating state-owned stores a good one and can the 2025 budget solve important financial issues, commented financier Lyubomir Datsov and economist Nikola Yankov on “Your Day” on NOVA NEWS.
Yankov said that if the state wants to create a chain of stores, it should nationalize one of the large ones. “If we create 500 stores in the country, that is a 10 billion leva investment to compete with existing chains. There is no shortage of stores in Bulgaria, there is no shortage of goods. The state will not have access to cheaper goods to offer, because it does not produce cheaper ones. It is produced by the private sector, which sells through existing chains”, the expert explained.
In his words, if the state wants to permanently reduce prices, instead of spending money on such proposals, it should stimulate competition and the creation of cooperative supply chains at the producer – retailer level. “Smaller producers and smaller retailers should unite so as to shorten the supply chain from production to the store shelf”, he explained further.
Datsov said that it is controversial to talk about state-owned quality production. He also believes that if it comes to efficiency and change for the better, state-owned stores will not lead to such.
Datsov believes that in terms of the budget, there is not a single proposal that would solve the problem of the deficit in the long term. In his words, there are no structural reforms. He added that the proposed measures are minor, without a significant effect on the budget. The expert emphasized that they were stated in order to demonstrate political activity, and not to achieve a real effect.
Yankov is of the opinion that right-wing policies require courage and clarity. In his words, “political parties – both in the ruling coalition and in the opposition – do not have the courage to say the words privatization, concessions, liberalization and layoffs. “Whoever says them first will be attacked. This is the reason why everyone is condescending and proposing minor adjustments that will not cause anything in the big picture”, the economist also said.