Expert Reveals Why Price Controls in Bulgaria Are Failing Ahead of Euro Adoption

Dimitar Margaritov, former head of the Consumer Protection Commission and ex-deputy minister of economy and industry, shared his views on price fluctuations amid Bulgaria’s transition to the euro and the effectiveness of market control, speaking to Bulgarian National Radio.

He noted that the psychological impact on both consumers and traders has been significant, likening it to the “broken phone” effect that has fueled tension and confusion. Margaritov commended the cooperation between institutions but stressed the need for ongoing, and perhaps more streamlined or joint, efforts to enforce control measures. Still, he pointed out the deep-rooted distrust among consumers toward institutional efficiency. With just around a hundred inspectors covering the entire country, he argued that effective oversight remains impossible.

Highlighting a need for reform in the regulatory framework, Margaritov proposed equipping consumers with what he described as “micro-weapons” - legal tools that would empower them to influence the market directly and combat unfair practices by dishonest sellers. He argued that sanctions should come through consumer behavior rather than just institutional enforcement.

Addressing the current legislation, Margaritov remarked that the general prohibition against speculative price hikes embedded in the Euro Law lacks meaningful sanctions, making it difficult to hold offenders accountable.

When asked about the conflicting messages circulating - official assurances of zero inflation alongside reports of rising prices - Margaritov offered a nuanced view, calling it a “Solomonic truth.” He explained that while broad inflation levels remain low, the reality is different for specific goods, where price increases are indeed noticeable.

During his appearance on BNR, Margaritov also emphasized Bulgaria’s low purchasing power, suggesting that despite official statistics, many consumers feel the strain of higher prices in their everyday lives.

Margaritov conveyed a complex picture: institutional efforts are underway but insufficient, the regulatory framework needs tightening, consumers must be empowered, and the inflation narrative is not as straightforward as it seems, especially at the level of individual products.

Source: BNR interview