“The American Chamber has not changed its position from last year – it is important to uphold the principles of a market economy. The big question is how to achieve more reasonable prices. With this targeted attack on large chains, things are actually quite clear. It is unclear, however, what is happening in smaller stores. The bigger question is whether the measures are being implemented, not whether more regulation should be introduced.”
This was stated by Ivan Mihaylov, Chief Executive Director of the American Chamber of Commerce in Bulgaria (AmCham Bulgaria), on the “Business Start” program on Bloomberg TV Bulgaria, hosted by Hristo Nikolov.
Market Principles vs. Regulation
It is normal for the new government to seek a solution amid growing social tension. A very careful analysis is needed to determine exactly what the measures should be so that they do not have the opposite effect. There is clearly a willingness for dialogue between business and the government.
“We need to track exactly where in the supply chain the speculation is that leads to price increases,” Ivan commented.
According to Mr. Mihaylov, it is all a matter of analysis and data, but we should not look at the data only at the end. Currently, the focus remains on the supply chains, rather than examining the entire journey of the goods. Introducing a cap on markups would have a very negative effect on consumers.
What are the challenges facing Bulgaria
The bilateral chambers welcome the country’s stable governance. Business finds itself in a situation where global and regional processes exert a strong influence. Mihaylov explained that there are several key issues facing Bulgaria – the rule of law, where our country has a long way to go.
“The principles of a market economy are very important, as this signals to the business community that it can thrive. Anything else would deter investors. We must not forget human rights either.”
Ivan added that strengthening institutions with qualified professionals applies to everyone, including regulators. This is also linked to the fight against corruption and the rule of law. Bulgaria’s removal from the gray list for money laundering will send a very strong signal to investors who are facing purely transactional issues.
“Bulgarian companies are heading to the U.S. – and the same is true in the opposite direction,” Mihaylov noted.
The more these relationships develop, the better. When the environment becomes less regulated, it helps foster good trade relations. Data centers and artificial intelligence are among the major areas where there are many opportunities for partnerships. The same applies to energy, defense, and infrastructure.
Mihaylov noted that high-tech companies have traditionally been interested in expanding into the U.S., as new niches in trade and defense continue to emerge. The U.S. market is large enough to foster a healthy competitive environment.
You can watch the whole interview in Bulgarian on Bloomberg TV Bulgaria’s Website via the following link.