Petar Ganev, a senior researcher at the Institute for Market Economics, stated in an interview with Bulgarian National Radio that it is highly likely Bulgarians will begin making payments in euros starting from January 1 next year, despite the political turmoil in the country. He emphasized that the economy is expected to meet the necessary criteria within a few days, predicting that the country's average annual inflation will be around 2.5-2.6%.

Although the legal framework is still being worked out, Ganev noted that Bulgaria is already effectively operating in a transitional phase, and payments in euros are being made without negatively impacting specific social groups. He mentioned that the situation concerning the minimum pension has been resolved favorably for pensioners, ensuring they are not harmed. However, the issue of civil servants’ minimum salaries, affecting around 100,000 people, remains unresolved.

Ganev also commented on the budget situation, stating that the absence of an adopted regular budget for 2025 means a 10% salary increase for government employees is unlikely to occur. He referred to the issue of teachers' salaries as more of an informal agreement, not legislated, and said that the situations in the Ministries of Internal Affairs and Defense were more contentious, as legal texts are involved. At present, he acknowledged that the Ministry of Finance is working hard to manage these complexities, despite the pressure on the national budget.

The economist suggested that a gradual increase in law enforcement agencies' salaries would be the best course of action. While it’s expected that the extension of the current law will be enacted, Ganev noted that this situation could continue, raising concerns over the unpredictability of public spending. He warned that this manual management approach would inevitably harm investment opportunities, as the uncertainty surrounding the state’s finances grows.

Source: Bulgarian National Radio (BNR)