/ world today news/ I predicted a disaster for GERB in my first statement in the National Assembly on the day of the establishment of the new majority. Ironically, Simeon Dyankov entered a role that he very much wanted to pass on to his predecessors. This is the style of GERB – they cannot explain anything meaningful if they do not find a culprit: comments Plamen Oresharski, former Minister of Finance, candidate for People’s Representative from the Coalition for Bulgaria.
– The general opinion is that after the elections there will be a stalemate in the National Assembly. What is your idea of the political structuring of power after May 12?
– The political structuring of power will be decided by the Bulgarian citizens on May 12. All kinds of situations are possible. Pollsters say that an unusually high percentage of respondents refuse to answer, meaning that the polls themselves are not particularly reliable as attempts to predict the final outcome of the vote. We’ll see…
– What sign does the Coalition for Bulgaria give with your nomination for Prime Minister?
– I think that you are better able to comment on the subject of signs, this is not so interesting to me.
– What were your reasons for accepting this nomination?
– Today the country is in a crisis situation and I think that everyone should help in whatever way they can.
– Years ago, you were a candidate for mayor from the SDS, and now the BSP is proposing you for prime minister. How will you explain this metamorphosis?
– In both cases, I accepted proposals for nomination and I do not see anything metamorphic in this. Although in different positions, I have worked for six Bulgarian governments. And at the risk of sounding immodest, the results of my work are not bad, I even have individual achievements that, professionally, can rank very high. Isn’t that more important…
– Today, Simeon Dyankov is accused of being the main culprit for the disaster of GERB. Do you share this opinion? Could you give a brief description of his work?
– The disaster of the previous government was planned even before it was formed. I already predicted it in my first statement in the National Assembly on the day of the establishment of the new majority, observing the numerous statements and the first actions of the high-ranking representatives of the new government. Ironically, Simeon Dyankov entered a role that he very much wanted to pass on to his predecessors. That’s the GERD style – they can’t explain anything meaningful if they don’t find a culprit. And when the opposition was no longer enough, they began to name one from among their own.
– In the last four years, there was a lot of talk about the legacy of the triple coalition. How would you describe the legacy of GERD?
– In the middle of 2009, the fiscal reserve was BGN 8 billion, and the government debt – BGN 10 billion. This means that the debt was covered by reserves in the amount of 80%. Currently, the fiscal reserves are BGN 4.5 billion, and the debt is over BGN 14 billion, or the debt is covered by reserves in the ratio of -30%. What else to discuss – there is no sector in which decapitalization was not realized or deficits and debts were not accumulated.
– You promised an end to state harassment of business. Could you describe the mechanism by which today’s administration exercises this harassment?
– It is evident from the reduced economic activity and the decreasing internal and external investments. I hear from various entrepreneurs about administrative-force pressure with selfish motives, but they are unlikely to confirm it publicly, so I will also refrain, so as not to appear empty-headed.
– What percentage of Bulgaria’s economy is in the gray sector?
– This question is always difficult to answer, and the percentages are indicative. In the 2005-2009 term, various studies showed a share in the range of 15-30%. Today, these numbers seem wonderful to us, because we are already looking at the 30-50% range. Look also in the corruption indices of the leading external observers. In the last 10 years, we have always been in the queue among the EU member states, but we have never been in the last place. Today, this is another sad fact.
– What would you do if you had the power to bring as much of it to light as possible?
– Efforts should be made to normalize the work of revenue agencies and to strengthen remote control over business turnover. Frequent visits to the offices of companies does not work.
– Why did foreign investments dry up in Bulgaria and to what extent is this due to the global economic crisis?
– The external environment is definitely a factor, but not the only one. For example – in the years before the crisis, Bulgaria was the undisputed leader in attracting foreign direct investments, comparing them with GDP. Today, many of the new European countries are ahead of us. This shows that it is not only the crisis that stops investors.
– In Bulgaria, salaries and pensions are the lowest in the entire European Union, what is the chance that this will change in the coming years, in order to stop the outflow of labor and qualified specialists from the country?
– It is a function of our ability to ensure economic progress. We need to create an environment for business and for the development of entrepreneurship, both small and medium-sized businesses and large ones. In addition, we will have to make efforts to attract external investment, because of the access to markets that they provide.
– The protests against the monopolies brought back nostalgia for socialism. This should be a great temptation for the BSP, but not for you. What will you do if the party pressures you?
– I have not noticed that some of the factors in the BSP reflect on past economic times. Besides, I don’t understand what exactly I will be pressed for. Do not forget that the government in which I was finance minister and which was dominated by the BSP led a policy of record budget surpluses for the EU, because this was the appropriate fiscal behavior at the time. How many other governments can declare that they have pursued a policy that is not particularly popular in economic terms, but in the interest of the country’s longer-term development.
– More state in the economy or vice versa?
– This is a global fundamental question after the failure of the centralized Soviet-style economy at the end of the 1980s and the no less spectacular failure of the deregulated, libertarian economy at the end of the first decade of the new century. Of course, more state is needed, but with coordinating and guiding functions at the top and with freedom of initiative at the bottom. Whether we succeed as a society in making it happen depends on the extent to which we refocus the goals and tools of central administration. The task is not easy…
– Suppose you become prime minister. What are the first steps you will take. What can’t be delayed?
– I don’t like hypothetical questions. I prefer to answer what the new government should do immediately. To end the populist-propaganda and therefore chaotic and unmeasured “speak” that layers uncertainty and a high degree of uncertainty among businesses and households. To stop the racketeering-type administrative-force pressure on companies. To reduce smuggling and restore fairness in payments. To prevent the creation of artificial monopolies in any sector of the economy.
– Last – what are the left’s ideas about tax policy. Will you remove the flat tax?
– Practically not. In the program of the BSP, intentions are stated to change only in the taxation of the incomes of individuals, by exempting the minimum salary from tax and taxing only the highest incomes with a higher rate – those over 4.5 thousand. BGN Thus, the total tax burden will be reduced below 10%.
– Do you know about the problems of the Bulgarian manufacturers, which deepened with the massive entry of foreign trade chains in Bulgaria. Any idea how to resolve them?
– There is a need for a better regulation of the relationships between trade chains and producers. However, it is neither realistic nor helpful to expect undue protectionism for local suppliers simply because they are local.
– The previous question can be extended to the overall insane way in which the Bulgarian state does not protect the interests of its own citizens, providing unchecked comfort for unreasonable profits of foreign companies and firms. On the other hand, we have already established that the level of foreign investments in our country is tragic. How will you explain this paradox?
– This only shows that the truth is in the middle – unreasonable profits are not so unreasonable, and foreign investments do not depend only and only on taxes or a higher rate of profit. Obviously, the overall business environment is not that attractive, despite the low taxes, low labor costs, and lax regulations you mention
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