/ world today news/ “The main alternative to the current government, which Bulgaria needs, is the return of the state to its basic functions”. This was stated by the chairman of the National Assembly of the BSP, Mikhail Mikov, during the discussion on the topic: “Is there an alternative to the current government”, organized by the “Alternative” club.
According to him, the problems have been identified, but we are moving in the opposite direction, which is most acutely felt in the spheres related to the functions of the state. “The understanding of a smaller state in our country is applied more and more thoroughly with each passing year, although Europe after the recession – went on a different path,” he said.
Mikov explained that Bulgaria today relies on exports, but it exports its natural resources, and access to them is mainly granted to foreign companies. The socialist was adamant that there must be an alternative to get out of the debt spiral, to find funds for the development of the private sector, which is here in Bulgaria; to increase labor wages at a rate that would limit permanent labor migration. Regarding health care, he stated that in this area, the understanding that hospitals are commercial companies cannot continue, and the backbone of health care cannot be provided with state hospitals taken out of business turnover. Mikov was adamant that the practice of making decisions that once again interfere with the patient’s pocket should not be stopped, even though he was a regular payer.
Mikov emphasized that the main issue related to the alternative for the development of Bulgaria is that the production of GDP per capita in Bulgaria is about 2.4 times lower than the European average. At the same time, the real wage is 4.8 times lower than the European average. “Here is the great clash between capital and the price of labor,” declared the leader of the left. In the last 15 years, capital has greatly advanced and there is a huge inequality in Bulgarian society, Mikov also said and continued – from this arises the big problem of how the mechanisms of state management set out to change this inequality. This should be a question not only of the left, but of the whole society, including the Bulgarian business.
Mikov emphasized that in recent days there has been a series of reactions by the Chamber of Commerce, the Chamber of Commerce and Industry and the Association of Industrial Capital against the bill of the PG of the BSP Left Bulgaria on so-called progressive taxation. “The progressive scale, which reaches 27%, in no way affects the capital in our country. They should welcome this proposal, because with this ratio – production per capita of GDP and wages, it is becoming more and more obvious that the Bulgarian people will go to work in other countries and economies”, stressed the chairman of the BSP. He explained that progressive taxation would not in any way harm the profits of businesses in our country, because it leaves disposable income for their workers, which would go back the other way to consumption.
“The major alternative in the redistribution process must be in favor of labor, of the workers,” Mikov was emphatic. He emphasized that progressive taxation is related to the fight against the demographic catastrophe in our country. The socialist explained that Bulgaria will decrease by 40 thousand people per year until 2030. Since no measures are taken in this direction, after that the pace becomes geometric and will increase to 80 thousand per year. “There can be no wealth, economy or development where there are no workers and no consumers,” the left-wing leader said. According to him, the alternative to what is happening should be the sphere of income, which can be changed through an effective policy.
Mikov stressed that it is important to ask the question of how Bulgaria functions today and whether the democratic, social and legal state written in the Constitution have been implemented. “Until now, neither left-wing nor right-wing politicians and experts have acknowledged that these principles have been implemented,” he said. The BSP leader added that the Bulgarian citizen, without nostalgia, can compare the welfare state now and the one before 1989 based on social parameters in terms of access to education, health care, etc. “The state must return to the field of solving these severe crisis processes that are developing in Bulgarian society, economy, health care, education”, said Mikov. According to him, this can be realized by increasing the percentage of GDP redistributed through the budget, for which there are no signals from the authorities. “There is no sign that the state can function as a legal state – it is absurd in a legal state for the prime minister to denounce laws passed by the parliament, which is becoming an increasingly common practice,” Mikov was categorical.
The leader of the left also stated that the question is also important – who benefits from the European funds, because it is a very narrow circle of people, a business stratum close to the management. “Corruption in the implementation of public procurement made it so that the approach expected by Bulgarian citizens to Europe with European funds became a source of quite serious profits for that business, which is close to the central, and in many cases also to the local government”. Mikov stated.
According to him, when these funds stop – because they will decrease more and more, because Europe is mired in a crisis situation and will look for a reallocation of funds, an alternative should be another source. It must be connected with the funds that are here in Bulgaria. “There are tens of billions of savings in the Bulgarian banks, but they were not sought in the debt of BGN 16 billion. With this decision, today’s administration has drastically rebalanced the internal-external debt ratio – if before it was 50:50, now it is 60: 40 in favor of the external debt”, stated the chairman of the BSP. In his words, for the alternative – for the development of Bulgarian business and the Bulgarian state, as well as the possible creation of a state fund for development, one should look at those funds that are in Bulgarian banks at minimal interest rates. “There is a national financial resource, but obviously the difference in percentages means that the current government is looking for the financial intermediary from outside”, he commented. According to him, with this development of the economy with 1.5% GDP growth, the question of indebtedness will become a crisis. According to the socialist, this will apply to a particular extent when the BGN 16 billion debt maturities begin in a few years.
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