27.01.2012

Bulgaria will not support or take part in common agreements presupposing future alignment of tax policies, said Deputy Prime Minister and Minister of Finance Simeon Djankov in the deliberations for setting up the national position on the International Agreement on a Reinforced Economic Union.

The Finance Minister recalled that in the middle of January he dispatched a letter to his colleagues, the ministers of finance of the other EU Member States that are not part of the euro area. It lays down Bulgarian views on three issues and requests joint action of the ten members outside the euro area in order to defend those views. The letter says that Bulgaria supports the conditions for enhanced fiscal governance provided for in Chapter III of the draft Agreement and inclusion of clear rules for budgetary austerity in the national laws of each EU Member State. Bulgaria's major requirement is that Chapter IV be excluded from the discussions until it becomes clear what "common economic policy" means and what "coordination" and "convergence" mean, emphasized Minister Djankov. Bulgaria urged for not making reference to the Euro Plus Pact. Third comes the requirement for the states outside the monetary union to have the right to active observers in the euro are summits.

"Every EU Member State should introduce clear fiscal discipline rules in their national laws", added the Deputy Prime Minister. In his speech Minister Djankov reminded of the talks launched a year ago in Parliament on the Financial Stability Pact proposed by the Government, as a result of which the Organic Budget Law of the Republic of Bulgaria set a 2% deficit ceiling and a 40% government expenditure cap. The Bulgarian Government met those conditions even in 2011, although as from the beginning of this year it is obliged to stick to this rule by law. Bulgaria is not a party to the European Stability Mechanism and will not take part therein, Djankov recalled.

Here you can find the full text of the speech.