28.06.2023

In order to achieve higher economic growth in Bulgaria and attract investment, we need to improve the country's infrastructure and connectivity and restore the rule of law. Bulgaria’s entry into the euro area and Schengen will make these processes easier and will lead to higher productivity. This is how the Finance Minister Assen Vassilev highlighted yet again during his participation in the Sofia Economic Forum IV the importance of the priorities set by the Denkov government, namely Bulgaria’s accession to Schengen and the euro area as soon as possible.

The 2023 draft budget, which sets out measures bringing the deficit down to 3% while not limiting social payments, will be presented tomorrow. “We guarantee that investments will not be affected and we have a guarantee for high tax collection”, Minister Vassilev said at the forum.

In his speech he also paid special attention to the challenges the country faces in attracting investment, i.e. achieving the rule of law, following Romania's example, and building new infrastructure to improve regional connectivity. “For a more productive economy we need to have better physical infrastructure, i.e. machines, factories, roads and bridges. If a TIR waits at the Danube bridge in Rousse for three days, it is a loss for the business and it plans lower wages, lower investments”, the Minister stressed.   Bulgaria has a border of 450 kilometres along the Danube river and only two bridges, which is insufficient for the economic development. Joining Schengen will make it easier to build bridges, Vassilev believes. Currently, businesses lose BGN 1.5 billion a year from transaction fees, which is why the country’s accession to the euro area is important, he added.

Last but not least, it is key for Bulgaria to work on strategic analysis and planning. He told the forum that when the war in Ukraine broke out, a team from the Ministry of Finance had developed three alternative scenarios and it was good planning that helped the country cope better with the economic effects.