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Life in Bulgaria becomes more expensive

Everyday life of Bulgarians has become more expensive by nearly 6 percent over a year, the latest research of the Confederation of Independent Trade Unions in Bulgaria /CITUB/ shows. The prices of electricity, natural gas and central heating that went up as of July 1 were to be blamed mainly. At the same time the prices of vital goods and services will continue to grow due to the new rise of the prices of energy sources since October 1. In the meanwhile the growth of incomes is almost invisible. Thus more and more Bulgarians live on the poverty line and below it.

Despite the fact that the prices of many foods went down over the third quarter of the year, their overall rise on annual basis was nearly 7 percent. Non-food items and services have become more expensive too. The maintenance of accommodations, rents, healthcare services – the prices of all these have risen too. One person now needs some EUR 272 per month to live, a research of the syndicates shows.

“This means that a normal family of four needs EUR 1,086 per month,” Chair of CITUB Plamen Dimitrov says. “We all can say what percentage of the Bulgarian households has such incomes.”

Radostin and his wife are employees of private companies. They both earn some EUR 650 per month. The family supports their two sons that are students with this money, pay their bills and transport expenses. Each cent and cost is carefully calculated. They cannot save anything. Many Bulgarian families live like that, while others are even poorer. Barely 10 percent of the population lives a good life with the money earned. The minimum wage in this country has risen as of the beginning of September, reaching some EUR 135. Nearly 120,000 people are paid that way. Other 670,000 are low paid – a bit over 30 percent of the employees. There are economy sectors with salaries going up, despite the crisis. However, this is often at the expense of the reduced number of employees. For instance, the production in the coal mine industry has gone up by 17 percent, while the wage has been risen by 11 percent. Engineering companies have increased the salaries even more, Mr. Dimitrov points out.

“There are already branches /hopefully those will become more and more/ that pay higher salaries. However, the growth of the real wage as a whole lags behind the growth of industrial production.”

Appreciation of life places exactly low-paid workers in the heaviest situation. More and more of those go below the poverty line. Officially, this line has been EUR 105 for three years now. However, the syndicates have calculated something different, Mrs. Villy Ivanova from the Institute for Trade Union and Social Research says.

“The poverty line, based on consumer basket with 77 goods and services, essential for the physical survival of a person has reached almost EUR 100. Higher prices definitely lead to a bigger shrinking of consumption that lags behind all rational physiological indicators.”
Over 27 percent of Bulgarian households live below poverty line, the syndicates say. Logically, Bulgarians have withdrawn more from their savings over the third quarter and have saved less. Only one year earlier the trend was just the opposite – Bulgarians used to save twice more money on the money withdrawn from their accounts. Just to remind – today citizens keep in banks a bit over EUR 15 bln.

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Prices in Bulgaria going up, people getting poorer

Prices of major goods and services in this country are going up in an extremely rapid manner. Diesel fuel reached a record price, not seen before, the one of gas is increasing too. We pay more money for heating, which is a traditionally serious problem for many Bulgarians – the bills are up to 50 percent higher in this cold winter. Prices of major foods are going up too quickly. The forthcoming rise of the prices of electricity, water, gas and central heating will affect more all households. On the other hand, incomes in the budget sphere have been frozen for a third year in a row, along with pensions. Increased salaries in the private sector are often at the expense of reductions. According to Eurostat nearly 50 percent of this country’s population is threatened by poverty. Further data shows that 35 percent of people are poor. Their number will increase, according to the National Employment Agency, as some 50,000 employees from the private sector have lost their jobs only in January.

The maintenance of a family member cost EUR 274 end-2011, while a family of four needed this sum fourfold. More than a half of the average Bulgarian’s salary goes for the payment of central heating, electricity, gas, water, transport bills etc. At the same time we pay a lot more money, compared to citizens of other EU member-states. A newspaper has estimated the bill for central heating plus electricity expenses in January and those exceed EUR 180 for a flat of three rooms. These expenses are pretty much the same in Belgium, but the average salary there is 6 times higher. The one in Bulgaria was some EUR 360 in December 2011.

The Confederation of Independent Trade Unions in Bulgaria /CITUB/ states clearly that the labour of people in this country is not paid in a dignified manner. Polarization of incomes in this country is deepening. The difference between the best and the worst paid groups in this country is nearly six fold. It is the biggest in Europe. At the same time statistics doesn’t include extremely rich people. Salaries in this country, compared to its GDP are much smaller than in the rest of Europe.

“We do not discuss the absolute difference between Bulgarian and German salaries,” Chair of CITUB Plamen Dimitrov says. “The thing is that the average Bulgarian does not receive even that part of what he or she has produced that has to go to him/her. Labour productivity in this country is discussed a lot and the major statement is: “The average Bulgarian does not produce too much and that is why the salaries are lowest in Europe.” In fact this not so true – the actual labour productivity of people in this country is 44 percent of the common European level, according to Eurostat data. However, the average salary in the sectors of industry and services is 25 percent from the one in Europe. This is the truth. The situation has to be changed by a redistribution of resources.”

There is obviously something wrong in labour pricing here, Plamen Dimitrov goes on to say. CITUB starts a research on the price of labor in 10 industry branches. It will include the sum for salaries, for training of employees, expenses for labour conditions, leisure time etc. Thus the truth will be revealed on the real price of labour in these branches, what the systems of payment are and whether they correspond to normal European practices. By the way, payment in a series of sectors, such as mining, information technologies and pharmacy approaches its normal values, Plamen Dimitrov says in conclusion.

I've noticed that price are increasing slowly but steadily and I'm wondering where this will end, if you now consider the price of fuel with everything else Bulgaria isn't looking as good as it did. I have just found this article to add to the ongoing increases.

Food Prices in Bulgaria Steadily on Rise

The prices of basic food products in Bulgaria have continued to rise during the month of February, reports Bulgaria's state agency in charge of wholesale.

Eggs have marked a record rise of 35% for wholesale price during the month of February, which makes 60% on a yearly basis.

The white cow cheese price has risen with 4%, while meat sausages have risen with 1.6%.

The prices of beans, rise, milk and meat products have made a 5-10% rise of the price on a yearly basis.

Sugar and fish meat have been marking especially steep hikes, with 18% and 21% on a yearly basis.

Sunday a new string of protests against what some believe to be unduly high prices of car fuels are scheduled across the country, reports the Bulgarian National Radio.

This made for a good read and an eye opener. Its good to know that the prices in Bulgaria are rising because this may help improve the lives of others and perhaps give their economy a boost.

stigofthedump wrote:

Its good to know that the prices in Bulgaria are rising because this may help improve the lives of others

im confused ...would you explain that satement please ......

The idea is that the more people spend the better the economy will get and therefore in the long term life will improve.

I appreciate the idea stigofthe dump.....but a hell of a lot of bulgarians cannot afford to spend more and help their ecomomy ...in fact they are getting poorer and their lives are certainly not improving.....the more the prices rise .the worse it will get for them...

I get where your coming form and I fully understand what your saying but it's always been like this with any country that's joined the dreaded EU it gets worse before it gets better and my point is that in the long run they will/should be better off and I know that there will be casualties along the way but that's so called progress.

I am now officially below the poverty line in Bulgaria as well as UK. Two of us live on less than the stated average in Bulgaria. I am not complaining because I still have my independence and a house paid for. However, the clock is ticking so I hope Britain is ready for another re-pat!
Stigofthe dump - You have no idea what you are talking about. The old folk in our village are buying less because this is still a cash society so no money, no buying! How does that help Bulgaria to progress? We have young people in our village without work or hope but they stay cheerful and help each other. No progress there either for village Bulgarians.

there is less money around for many bulgarians to spend, in 2007 my neighbours electric bill was 10 levs, in october 2011 it was 70 levs and quite a concern to him. he may be contributing to the economy and helping others but he has got nothing out of it other than less money for the same thing. not good.

Eggs just gone up 100% and are now 40sts! Still at a loss as to how rising prices will help progress in Bulgaria.

Talking of eggs

Bulgarian Agriculture Minister Moves to Investigate Egg Price Hike

Bulgaria's Agriculture and Food Minister Miroslav Naydenov will investigate the reasons why egg prices in the country doubled in the course of just ten days.

"
Egg producers came to me when they had problems – unfair competition from Poland, Bulgarian producers that had not fulfilled the requirements. I helped them cope with these problems. Back then, they told everyone that egg prices won't rise. Now the opposite is happening,"
Naydenov reminded on Monday, as cited by the Focus news agency.

While Naydenov agreed that certain factors like higher fodder and energy costs may justify increased prices, he stated that the increase should have been by a certain percentage instead of double as much as the previous prices.

"
If they do not succeed at convincing me what the reason is or if I suspect a cartel agreement, I will ask the Commission on Protection of Competition to launch an investigation,"
Naydenov threatened, referring to egg producers.

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Thanks for that Admin. I must say I couldn't think of anything that could justify such a massive price rise. It makes eggs a special treat instead of a staple in everyone's diet. Many Bulgarians rely on eggs instead of buying meat and it would influence prices of cakes too. Chicken has also seen massive price rises whilst pork seems to be fairly steady so is this another 'cartel' decision? Something very strange going on in the chicken and egg world.

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Bulgarians Ranked Poorer than Chinese Peasants

Living standard in Bulgaria has hit record lows that are not representative of the European Union as a whole.

The sad statistics are ranking Bulgaria in the bottom of countries with low living standard globally.

The minimum monthly wage in Bulgaria is lower even than the one in China's remote rural areas, according to experts from the International Labour Confederation.

Minimum monthly wages in various Chinese provinces range between USD 160 and 240.

In Bulgaria, after deducting taxes and insurance contributions, the net minimum monthly wage is EUR 96 or about EUR 3.6 a day.

The above amount is absolutely insufficient for survival, according to Sharan Burrow President of International Trade Union Confederation (ITUC).

This makes very sad reading but does not surprise me. I don't know how some of our villagers manage. In fact, I know of one lady in her 30s who has a very serious illness but could not get into hospital as she had lapsed her health payments because she only earns 120levs a month working for the Community in the Pensioner's Club. She also has a 6 years old boy to support who enters school in September with attendant costs. She has received help from a Bulgarian friend working in Britain after a very tearful, suicidal telephone call. This situation must be happening up and down the country. It is definitely a two-tier town society with no middle class and villagers seem to be people of no consequence. This, even though Bulgaria has not got a huge credit debt like other EU countries. In fact, Bulgaria has even contributed funds to Greece! How does that work????
By the way, eggs in Britain have also gone up supposedly, due to EU improvements being implemented in chicken farms. The chickens have to have more space (good) and be able to perch which means eggs laid accidentally on the perch often fall and break!!!!! Wow that would send the price up wouldn't it?