| Finance Minister: Bulgaria Euro Bid Put off for 2011, No Giving Up |
Finance Minister: Bulgaria Euro Bid Put off for 2011, No Giving Up Finance Minister Djankov (sitting) shown here with PM Borisov during the news conference for announcing that the 2009 budget deficit has doubled, and the Eurozone application will have to be put off. PHoto by BGNES Bulgaria might be able to submit an application for the ERM II by January 2, 2011, Finance Minister Simeon Djankov has announced. Djankov commented Sunday on current tough budget situation after on Friday the Cabinet revealed it had discovered “hidden contracts” and annexes made by the previous government that it had not been aware of, exposing additional state debt to private companies. Thus, Bulgaria’s 2009 budget deficit almost doubled – from 1,9% to 3,7% - going above the 3% barrier set in the Eurozone criteria. Over the last few months, the Borisov government and Finance Minister Djankov had made it clear they intended to submit an application for joining the ERM II in the spring of 2010. “In the program that we submitted to the European Commission in January, we showed a 2009 primary deficit of 0.8%, meaning the money that was actually spent in 2009, and a total deficit of 1.9%. Together with Estonia, we had the best results in the entire EU. The amount of money we spent in 2009 cannot be changed but there is now the really unpleasant surprise with these contract annexes,” Djnakov said, as cited by the BNR, while pointing out that the Prosecutor’s Office and the Finance Ministry are currently working together with the internal auditors of thirteen ministries in order to figure out the origin of the “hidden” contracts; however, this process is expected to take several months. “The government wanted to be honest and fair to the Bulgarian people. We actually did not have to make this data public till October. But we did it now because we do not wish to leave anything covered up,” Djankov explained adding that the financial results of all institutions had been checked up in the last two weeks which led to the revelation of the 3.7% figure. “I hope that the EC will be understanding because trust is the most important thing in finances. And in his life,” declared the Finance Minister. He made it clear that Bulgaria’s application to the Eurozone is being put off. “The main economic goal of Bulgaria is overcoming the crisis. But at the same time the Eurozone access remains a priority, and we continue to work for that; we have very good indicators for 2010. It is completely possible that we will file a formal application for Eurozone accession before January 2, 2011. So there is no giving up on it, it has become much harder because of all the damage incurred by the government of the three-way coalition but it is not impossible,” Djankov promised. In his words, the situation in Greece has moved the Borisov government to announce immediately the budget discrepancy that it uncovered, and which resulted from the actions of the previous government. “What we have done in the last couple of weeks have been evaluated very highly by the EU. The ERM II is not a waiting room for the Eurozone, it is more like a fitness center; when we get in there, we will have to carry out additional reforms in healthcare, state administration, retirement system, so that we can make the final step into the Eurozone,” said the Minister. He stressed the fact that Bulgaria’s export has been on the rise the last few months, and there are reasons to believe that by the middle of 2010 the economy will start growing. At the same time, however, Djankov denied the need to revise the 2010 state budget, and pointed out he hoped that in 2-3 months Bulgarians will start buying new TV sets and thinking about where to go on vacation. “We are trying, in a time of crisis, to fight for the stability of our fiscal system. There is no doubt that Bulgaria is doing well and that everything is stable,” he stated. “In order to prop up the real sector, by March 2010, our government spent more than the state revenue in order to repay everything that the previous Cabinet had not paid. From here on, our budget revenue will be equal to our spending,” explained Djankov saying that Bulgaria’s fiscal reserved presented amounts to BGN 6.3 B. “The dirt that has been accruing here for years cannot be clear up in just a few months,” he said expressing his resent at the work of his predecessors. “We have a huge reform coming up. I hate seeing a doctor but I do it when I have to. The same way I have tried to convince the new Health Minister, Anna-Maria Borisova, that the healthcare reform is crucial,” declared the Finance Minister.
|
