/ world today news/ The Ministry of Finance, as well as the entire parliament, must fight to reduce the deficit. We are no longer in the Eurozone crisis of a few years ago. There is no reason for our deficit to be at 2-3% levels as it is now. We should aim for it to be below 1%. I see no reason for it to be bigger.
Achieving such a low deficit is difficult in part because today’s government is a coalition. But everyone should understand that financial discipline helps all parties, not just the one currently in power, I mean mainly GERB. All future governments will struggle with this problem. It is not solved in a year or two, nor will governments in the future shake it off. It is in the interest of all politicians that Bulgaria be financially stable. Our country must return to the financial discipline that existed until 2012 – early 2013.
So far, economists have not come up with an alternative to the policy of compliance with financial discipline. If there is an alternative, it is yet to be invented. Meanwhile, those who went the other way usually ended up with a “Greek script”. If not a “Greek scenario”, then at least to a rather severe economic crisis. Because financial crises lead to economic crises after them.
Bulgaria is far from the “Greek scenario”, although in the last two years our debt has doubled. It is currently around 30%, much lower than that of Greece. More worryingly, with this debt comes much higher interest rates. And the interest of each subsequent budget affects and shifts the attention of the budget from social problems to purely financial problems, which are not necessary. But Bulgaria is not far from Greece.
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Simeon Dyankov, Minister of Finance 2009-2013 The interview with Simeon Dyankov was taken during the presentation of his new book “Behind the wall. The Transition in Eastern Europe’.
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