„We will come out even stronger from this crisis, but we are currently in the eye of the storm. It will depend on political decisions how the business will cope. If the right policy framework is not in place, businesses will find it difficult to adapt to this highly turbulent environment.”
This was stated by Deputy Prime Minister and Minister of Finance Asen Vassilev during the opening of the economic forum „The Noise of Money“, the Finance Ministry announced. He added that inflation was not a temporary phenomenon that had emerged only as a result of the war. Inflationary processes began several years ago. Due to the COVID-19 situation, money began to be printed and consumption shrank significantly.
„Now we have a large reserve of money, which until they leave the banking system, will not be able to work normal monetary measures, including raising interest rates, shrinking lending and curbing inflation. The world has not seen such a scenario since the late 70’s,„, Asen Vassilev added. According to him, the war caused another shock – the supply of gas and grain, which are currently drawing new roads and sources.
„The presence of such serious challenges and crises before us helps to unlock processes and decisions that have been locked up for decades. For the first time, we are moving towards an integrated solution to the problems, thinking strategically for Europe as a whole,“, the minister pointed out.
According to him, Bulgaria and the European Union could even take advantage of this situation by achieving a unified policy and strategic position towards non-EU countries.
„We have two very critical situations ahead of us so that we can have a clear horizon next year at this time and leave the storm behind. We will adapt to the situation. The aim at the moment is not to allow the political and economic attacks against Europe to succeed,„, Vassilev stressed.
