Consumer prices in Bulgaria are 44% of what they are in the rest of the EU, Eurostat has reported. This places Bulgaria at the top of the cheap price chart in the EU, followed by Romania and Poland. In theory as prices are half the European ones, Bulgarians should be among the happiest people with high consumption. In fact, the situation is different as prices may be low, but wages are even lower. Experts estimate that wages and pensions in Bulgaria are 5 to 7 times lower than those in the more developed parts of Europe. An example - the minimum monthly salary in Bulgaria is 261 euros, while in France it is 1 498,50 €. The average salary in this country is 550 euro, while in Denmark it is 2575.68 euro. In Belgium the minimum pension is 1221 euro; in Bulgaria it is 102 euros.

In order for the picture to become clearer, it is necessary to see what these incomes mean as purchasing power. Things do not look bad, as according to a number of studies and experts, the purchasing power of Bulgarians is about 60% of the average level in other European countries. It is important to add that this purchasing power, has been growing during the past years by 7 to 10 percent annually. However, economists believe that these growth rates are not enough to reach the level of Central and Western Europe in the near future. And this may be an obstacle to Sofia's desire to enter the Eurozone's "club of the rich" where quality of life is far above that in Bulgaria.

As the cheapest country in Europe, Bulgaria is a consumer’s paradise for those who need transportation, vacation, education, or want to buy shoes and furniture. This is not the case when it comes to food and non-alcoholic beverages. In Romania and Poland they are cheaper than in Bulgaria.

The purchasing power of money also depends on devaluation of currencies due to inflation. Inflation is due to a number of factors, among which a significant role is played by demand - the more a product is bought, the more its producers or sellers are tempted to raise its price. This phenomenon is also observed in Bulgaria, where after nearly three years of deflation inflationary processes have recently been recorded to exceed 2 percent per year. This rise of prices is important for the whole of the Bulgarian economy, because GDP growth over the past few years was due to consumption, which may slow down in case of higher inflation rate that discourages and frustrates consumers.

At the end Bulgaria is the cheapest country in the EU, but also the poorest because of the low purchasing power of the population. Life in Bulgaria is hard, despite the seemingly low prices. Few are those who receive remuneration comparable to European standards and who can afford more than covering daily costs of living. However, Bulgarians do not give up and many of them have a second job. Some go abroad to look for better lives for themselves and their loved ones. With money earned abroad, living in Bulgaria becomes cheap. As it is cheap for foreign tourists who flock to Bulgarian resorts. In economy miracles do not happen for a day, and processes require time and the right conditions. In this sense, Bulgaria is on the right track, because both the government and people are very careful about spending and carefully choose their investments in order to get the most out of their hard-earned money.

English: Alexander Markov