Nikolay Vassilev: State intervention in prices is a wrong approach

The state should not set or control prices, including in the tourism sector. This was stated by financier and former Minister of Economy Nikolay Vassilev in a television interview.

He defended the principles of the free market and commented that the rise in hotel services and rents is a natural consequence of market processes. "I believe in a market economy, not in state communism. There are no reasons - economic or otherwise - for the state to intervene and control prices," Vassilev stated.

According to him, it is not appropriate to compensate tourists for higher accommodation prices through public mechanisms. "We do not live in state communism, and raising prices for hotels and rents is normal market behavior. We cannot protect poor state tourists and give them free hotels and apartments for 'Eurovision'," he said.

The economist spoke out against discussions about "fair prices" and "baskets of care". According to him, such initiatives represent excessive state intervention. Vassilev described them as "state communism in the style of North Korea and Cuba".

In the conversation, he also criticized the 2026 Budget, which he called the most catastrophic one yet. "Submitting a budget with a huge deficit and zero reforms is sloppy work," the former minister commented. He nevertheless pointed out that in the management program of Rumen Radev's government "there is almost nothing that is breathtaking".

According to Vassilev, the "Progressive Bulgaria" cabinet is following a rather left-wing and socialist line, and its overall policy does not show a clear direction.

He also rejected the thesis that the introduction of the euro is the cause of higher inflation in our country. According to his assessment, Bulgaria should not worry about inflation in the range between 4% and 5%, and the country continues to be among the cheapest in the European Union according to various indicators.

"Bulgaria does not have a big problem with prices and inflation, and if it does, it is not related to the word 'Eurozone'," Nikolay Vassilev was categorical.