SOFIA – Bulgaria's parliament has backed the creation of a state-run chain of stores in the country's poorest regions that would sell food products at a limited markup. The idea was put forward by the parliamentary group DPS-New Beginning, whose leader Delyan Peevski is under U.S. and British sanctions for corruption and is accused by political opponents in Bulgaria of rigging elections.
The government will set up a trading company with an initial capital of €5 million, which will be controlled by the Ministry of Agriculture and Food. Shops will be opened in the premises of state post offices in small communities where elderly people receive pensions.
“The creation of a state network of grocery stores with controlled origin and prices is a critical step that the state must take to stop speculation by resellers, networks and cartels, to support the purchasing power of the population and access to high-quality and affordable food products even in the smallest settlements,” says DPS-New Beginning.
Economist at the Institute of Market Economics, Adrian Nikolov, noted that state intervention in any market raises doubts about the violation of competition and EU legislation.
“In this case, the expressly stated intention is to change the market situation in order to reduce food prices. The Commission for the Protection of Competition will have to very thoroughly investigate whether the retail chain, behind which stands all the financial power, is an unfair market participant,” Nikolov commented.
Over the past two months, Bulgarian consumer groups have staged several protests to boycott the shopping, which has become particularly popular in Eastern European countries. Data shows that the first protest alone led to a decrease in store turnover of about 20%. Annual inflation in Bulgaria is 2.6%.
(Krassen Nikolov | Euractiv.bg)
Source: Source
