Finance Minister Galab Donev commented that the rise in inflation in Bulgaria cannot be attributed to the introduction of the euro in the country. Donev made the comment during a discussion with Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), as part of the high-level conference “Building Resilience Together: Bulgaria’s Membership in the European Stability Mechanism” on Friday.
The forum, organised by the Ministry of Finance and the ESM in Sofia, was opened by Prime Minister Rumen Radev.
The rise in inflation in Bulgaria coincided with the country’s accession to the euro area, but under no circumstances can the euro be blamed for inflation in the country, Galab Donev said. He noted that the war in the Persian Gulf began during this period and that fuel and electricity prices rose dramatically, adding that this affected energy prices and the domestic market. Given that Bulgaria is a small country with an open economy that relies on imports of resources from abroad and is interconnected with the economies of the major EU countries, all these shocks and variations in the prices of energy sources, fuels and electricity affect all goods and services produced in Bulgaria and imported into the Bulgarian market, Donev said.
According to him, despite perhaps some desire to attribute part of the rise in inflation to the introduction of the euro in Bulgaria, this cannot be confirmed, as there is no objective basis on which such a claim can be substantiated.
Prices in Bulgaria began to rise as early as the summer of the previous year, but they maintained a relatively steady percentage increase, as reflected in the consumer price statistics at the time, Donev noted, pointing out that this was again linked to rising electricity and fuel prices and to the war in Ukraine.
He said that Bulgaria and the Black Sea region are now facing another shock and risk related to disrupted supply chains, which is also having a significant impact on rising prices and inflation. Donev explained that due to the situation in the Black Sea region, this year’s wheat harvest in Bulgaria, which has yielded record volumes, cannot be exported. Wheat prices have risen on the world market, but neither Ukraine, nor Romania, nor Bulgaria can benefit from this increase because of the exceptional uncertainty in the Black Sea region, while low water levels in the Danube also prevent exports to other European countries, the Deputy Prime Minister said. He added that this is also putting pressure on prices and inflation in Bulgaria.
Noting that the percentage increase in fuel prices in Bulgaria remains the lowest in the entire EU, Donev said that the Government would continue to implement and use measures to ensure stable supplies at reasonable prices and would not allow its policy on excise duties and VAT rates for fuels, electricity, natural gas and liquefied petroleum gas (LPG) to result in increases in the prices of other goods and services as a result of rising energy prices.
Finance Minister Donev also said that it is impossible to forecast or prevent rises in prices and inflation resulting from the geopolitical situation in the world.
Finance Minister: Inflation Rise Cannot Be Attributed to Introduction of Euro in Bulgaria THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-09-25 10:19:07
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