Bulgaria Unites Watchdogs to Curb Price Hikes Ahead of Eurozone Entry

Three Bulgarian regulatory institutions - the Commission for Protection of Competition (CPC), the Consumer Protection Commission (CPCo), and the Communications Regulation Commission (CRC) - are joining forces under a new tripartite cooperation agreement. The pact, signed today, aims to establish coordinated oversight and action in preparation for the country's adoption of the euro.

This initiative echoes a previously signed agreement involving the National Revenue Agency (NRA), also focused on preventing artificial price hikes and shielding consumers from manipulative market behavior. Regulators are particularly concerned with unjustified increases in the cost of goods and services during the transitional period to the new currency.

Radomir Cholakov, deputy chairman of the Consumer Protection Commission, commented that current heightened regulatory activity stems largely from political anxiety. “Much of this pressure comes from political over-panic. We, as an administration, have functioned in a very fragmented, federalized way for years,” he said in a television appearance on Nova TV.

He noted that coordination between institutions is essential to ensuring fair practices. The NRA has access to comprehensive financial data, the CPCo has the analytical tools to track pricing discrepancies, and the CPC has the mandate to identify and penalize cartel behavior. “We go after the most serious offenders,” Cholakov added.

Addressing broader structural issues, he cited examples such as monopolistic retail chains in smaller towns that have pushed out local shops, creating conditions where price manipulation is more likely. “In cases like these, local authorities share part of the responsibility,” he said. He also pointed to Bulgaria's reliance on food imports in many sectors as a factor enabling middlemen and traders to drive up prices at will.

Cholakov described the economic landscape as uneven. “You can’t find an empty table in Sofia’s downtown restaurants in the evening, yet some rural areas are economic deserts,” he remarked, highlighting the deep regional imbalances in purchasing power and opportunity.

He also warned against public misconceptions driving financial decisions. The surge in apartment buying out of fear that property prices will soar post-euro adoption is misguided, he argued. This type of behavior reflects unnecessary panic rather than grounded economic reasoning.

Through coordinated regulation and clear communication, the Bulgarian authorities hope to temper such reactions and ensure a smooth transition into the eurozone without opening the door to speculation and unfair market practices.