Business Warns of the "Romanian Scenario": Minimum Wage Agreement Nearly Reached

Bulgarian business is expressing serious concerns regarding the country's economic trajectory, comparing the current situation to the "Romanian scenario" from several years ago. This was stated by the CEO of the Confederation of Employers and Industrialists in Bulgaria (BRP), Dr. Boyan Mitrakiev.

In an interview with Bulgaria ON AIR, Mitrakiev emphasized that the state is at a critical point where the budget deficit and high inflation are directly linked to automatic wage increases. According to him, although an agreement with the unions regarding the new minimum wage levels was almost reached, the cost structure remains problematic.

"In the state, everything is connected – either to the minimum or to the average wage. With the minimum wage, there is no drama; it is tied to inflation and the budget deficit," the business leader explained. He added that Bulgaria is demonstrating similar economic indicators to Romania four years ago, which is a signal of upcoming difficulties.

One of the main problems pointed out by BRP is the high proportion of social expenditures in the state budget. According to Mitrakiev, about 80% of the budget is directed toward social payments and salaries, which makes the state's capital program almost powerless to resolve the structural deficit, even if it were drastically reduced.

The business community is calling on the authorities to reconsider the "automatisms" that maintain the high deficit and inflation, especially under conditions of full employment in the country. According to BRP, maintaining such a deficit in peacetime is absurd and shifts the burden of economic instability directly onto the taxpayers.