22.07.2011

As a result of the amendments to our organic budget law, Bulgarian governments will not be able to pursue undisciplined fiscal polity

In a series of interviews with leading world media Deputy Prime Minister Simeon Djankov outlined Bulgaria\'s positions in the light of the debt crisis in the euro zone. Before BBC World Service, CNN and Sky News the Bulgarian Finance Minister stressed the need for all EU states to introduce strict fiscal rules.

Before the BBC World Service radio Minister Djankov projected that despite the difficulties in the past few years, the single European currency would become the strongest world currency. \"What we learned from the crisis is that we need strict fiscal rules\", pointed out Simeon Djankov. \"Now we lay down in our organic budget law that governments may not pursue undisciplined fiscal policy. This is something that all EU states must do and the other euro zone countries can learn from Bulgaria,\" said the Deputy Prime Minister to the BBC. According to him, 70% of Bulgaria\'s trade was with euro zone countries, and for that reason our country was interested those to have sound economic and fiscal perspectives.

Bulgaria can teach the euro zone countries a number of lessons that they have forgotten, said the Bulgarian Finance Minister in an interview with the prestigious Quest Means Business on CNN. Both EU Finance Ministers, and politicians and analysts should be aware that the solution for the problems in the euro zone can not be partial; it must be a comprehensive one. To the question of Richard Quest as to why Bulgaria wanted to join the \"sinking ship of the euro zone\", Minister Djankov said that with countries like Bulgaria, Estonia and Slovakia, which recently joined the EU, the euro zone would become a more conservative club in fiscal terms, which benefited all. The euro zone has a lot to learn from those countries because we have already undergone massive restructuring of the economy and the banking systems after the collapse of the communist regimes and those lessons are now somewhat forgotten.

Before CNN Simeon Djankov again expressed Bulgaria\'s reservations to the idea for harmonization of tax policies in the European Union. He made it clear that our country would take such issues into account when planning its future membership in the Monetary Union.

In an interview for Reuters, Simeon Djankov said that the government had not changed its intention to join the euro zone but no specific time has been fixed yet. Bulgaria is not expected to conduct preliminary talks on joining the ERM II until the situation in the euro zone becomes clearer, was categorical the Finance Minister.

Reuters reminds the changes approved by the Bulgarian Parliament, according to which, as from January 2012, the budget deficit must not exceed 2% of GDP, and budget redistribution is limited to 40% of GDP. Minister Djankov projected that in the current year the budget deficit would be reduced to 2-2,1% of GDP, below the budgeted deficit of 2,5% of GDP for the year. During the first half of the year the deficit shrank to 0,9%, reminded also Simeon Djankov and added that the Government was not intending to issue eurobonds in 2011.

Before Reuters the Deputy Prime Minister projected another 350 million euros of revenues from privatization in 2011 and 600 million euros of revenues from sale of government assets next year.