16.04.2010

The European Commission considers the Convergence Program of Bulgaria adequate, said Deputy Prime Minister and Minister of Finance Simeon Djankov today after the first session of the informal ECOFIN meeting in the Spanish capital Madrid. Because of the absence of representatives of nine Member States due to the problems with the air traffic over Europe, the final consideration and adoption of the Convergence Programs will take place next week. Until then, however, they can not be amended.

The overall conclusion of the European Commission for the Convergence Program of Bulgaria is that the program objective of maintaining a sound budgetary policy can be considered adequate in the current economic situation and in view of the need to reduce external imbalances. The consolidation measures taken represent a political commitment to improve fiscal discipline, say the conclusions of the Commission. The new government is expected to neutralize the risks through the slightly favorable data on growth and revenue collection. \"In other words, the European Commission approved our Convergence Program and considers it adequate. This enables us in the coming days and weeks to address the issue together with our partners from the Commission whom we have invited to visit our country in early May to assess whether an excessive deficit procedure will be opened for Bulgaria or we can avoid it,\" said Minister Djankov. \"The assessment of the Convergence Program shows that everything done by the new government is completely adequate\", added the Deputy Prime Minister.

In view of the above assessment and the need to ensure sustainable convergence, Bulgaria is invited to continue to apply strict fiscal policy as it has done so far as well as to take further measures to achieve the program objective for 2010. This part refers to the recently discovered problems with the 50 annexes to contracts, explained Minister Djankov. In his words, the Commission enables the Bulgarian government to discuss and assess the need for additional measures in the next few days.

„In order to improve the efficiency of public expenditure through strict implementation of planned reforms the country also needs to make reforms in the areas of public administration, healthcare, education and pensions,\" says further the comment of the European Commission on our Convergence Program. Minister Djankov has informed our European partners about the Academic Faculty Development Act, approved yesterday by the Bulgarian Parliament, which is a major step in the reform of higher education.

In order to stabilize the fiscal stance in the second half of 2009, the authorities in Bulgaria have adopted a package for fiscal consolidation to the amount of 2.3% of GDP, reminds further the European Commission.  \"The Commission has estimated that thanks to the measures our government took in the period August - December 2009, we have managed to reduce the deficit by 2.3% of GDP. But that was before the additional BGN 2 billion, which emerged recently,\" pointed out Simeon Djankov.

The comment on the medium-term budget objective in the Convergence Program for the next 3 years is as follows: \"Given the latest forecasts and the level of the Bulgarian debt, the medium-term budget objective more than adequately reflects the objectives of the Stability Pact\". \"For us this is the best recognition,\" said the Deputy Prime Minister after the informal ECOFIN meeting.

The budget strategy of the program may be considered compliant with the requirements of the Stability Pact and contributing to maintaining macroeconomic stability and investor confidence in the Bulgarian economy, says further the comment of the European Commission on the Convergence Program of Bulgaria.