Following a speech by US President Donald Trump, oil prices have risen sharply — by an average of 10%. The war in the Middle East is increasing uncertainty for the eurozone economy, creating risks of higher inflation and weaker economic growth, according to the European Central Bank.
Economists warn that higher energy prices will also impact food costs. A check shows that greenhouse vegetables in Bulgaria have become significantly more expensive. From producer to market, tomato prices increase more than fivefold, reaching up to €6.50 per kilogramme at retail.
Farmers are calling for government measures in response to rising prices. President Iliana Iotova met with the caretaker Minister of Agriculture and the Minister of Tourism to discuss mechanisms to control prices.
Blagovest Angelov, a grower of six decares of greenhouse tomatoes in Kresna, said: “For me to make a reasonable profit, tomatoes price should not fall below one euro fifty.”
But at the market in Blagoevgrad the price is different.
Elitsa, a vegetable trader in Blagoevgrad: “If last year I was buying tomatoes for four leva, now I’m buying them for four euros."
In shops, tomato prices reach up to €6.
Kostadin, a customer: “It’s terribly expensive — they’re skinning you alive. There’s no mercy from these people…”
Efforts to curb price rises ahead of Easter
At a meeting with the caretaker Minister of Agriculture, the President also expressed opposition to speculative price increases ahead of Easter and called for support for farmers. Officials say measures are being taken to prevent unjustified price hikes due to the Middle East crisis.
Ivan Hristanov, caretaker Minister of Agriculture, said: “We do not expect significant or noticeable increases in the prices of goods. €557 million will be injected into the sector over the next three months to ensure liquidity and cover its costs.”
The impact of the crisis on the tourism sector was also discussed by the President with the relevant minister. Iotova emphasised that presenting Bulgaria as a safe destination could help secure a successful tourist season. However, caretaker Tourism Minister Irena Georgieva said the caretaker cabinet is not planning to reduce VAT for the sector.
“VAT at 9% does not receive unanimous positive public support. But it is very important that society understands this measure primarily supports businesses, helping preserve jobs and enabling development and investment,” she said.
The Ministry of Tourism is expected to propose a package of economic measures within two weeks.
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