The National Assembly on Friday approved the establishment of a single-member joint stock company (EAD) to run chains of stores where the markup on staple foods and other essential products will not exceed 10%. The proposal, made by Yordan Tsonev MP of the Movement for Rights and Freedoms – New Beginning, passed by a vote of 117-102 and two abstentions..

The Ministry of Agriculture and Food will own the capital of the new company. The future stores will work mainly with Bulgarian producers. The MPs gave the Council of Ministers one month to take all necessary actions for the company’s establishment and functioning. Initially, the company’s capital will be BGN 10 million.

On March 13, the National Assembly Budget and Finance Committee gave the green light to the establishment of state-owned stores to sell Bulgarian goods at low prices.

Jordan Tzonev MP of MRF-New Beginning said that the initiative “would shorten the supply chain for food products in this country and help lower prices, which are sometimes unfairly inflated.” He pointed out that similar stores exist in countries like Germany and France.