The announcement of an excessive deficit procedure for Bulgaria is above all a political fact that puts the state of public finances back on the agenda. This was stated by the MP from "Progressive Bulgaria" Anton Kutev on the air of "This Saturday" on bTV, commenting on the expected actions of the European institutions and the measures that the state will have to take, quoted by novini.bg.
„The very announcement of an excessive deficit is a political fact that actually only raises the topic. That is, the state of finances is as it is, and the fact that it is currently being ascertained from the outside, in addition to from the inside, does not matter much, except that this, of course, will force some stricter measures to refrain from unnecessary budget spending“, said Kutev.
According to him, the data on the state of the budget are not a surprise. “They did not tell us anything new. We knew it. We have said that in fact the deficit does not correspond to 3%. These are data that we all knew”.
Kutev questioned the official data used in the process of joining the eurozone. “I don't believe there is a Bulgarian who was not aware that at the end of last year, when the statistical data were being provided and when we were fighting to enter the eurozone, this data was being submitted manipulated so that we could enter the zone”
When asked how it was possible that the European institutions had not established such discrepancies, he replied: “Look, this is the same European Commission that uses the same mechanisms. It used them both before the New Year and after the New Year. The mechanisms for which it is currently establishing the excessive deficit are the same ones that they used before the New Year”.
According to him, the problem is not limited to the budget deficit. “It is not only the deficit that is the big problem for Bulgaria. Inflation is also a problem. If someone can be convinced that inflation is 3.5% or 4%, as much as they give us, we all see in our own pockets that it is much more".
Kutev also commented on the prime minister's criticism of previous administrations and financiers, but refused to name specific guilty parties. “Have no doubt that we will get to the names. One of the things we came to power with was that we want to change the way the political system functions. Part of that is not to throw names and accusations in advance".
According to him, responsibility must be established by the competent institutions. “These names will become clear, but they must become clear from the prosecutor's office and the court. We are not the politicians who should name them".
According to Kutev, the main reason for the current situation is the sharp increase in social spending in recent years without a corresponding increase in revenues. “In my opinion, the problem is that under past governments, social spending was increased without sufficient justification and without revenues being able to cover it over time”.
He gave an example with the pension system: “When you raise pensions once, they must then continue to be raised. We continue to maintain the Swiss rule. But when expenses greatly outweigh revenues and these expenses increase every year, this means a deficit, new loans and indebtedness of the state”.
According to Kutev, the specific solutions will be clear with the presentation of the budget. “These measures must come with the budget. It is not ready yet. The detailed answer to these questions will come with the budget and very soon”.
He confirmed that the government does not intend to limit basic social payments. “One thing we are saying is that we will not violate the basis of social spending. Pensions and the Swiss rule must remain, because there is no other way. Pensioners are the most affected part of all this”.
Kutev also reminded of the measures already taken in the administration. “We have taken measures with a 10% reduction in expenses, respectively, of the administration in the ministries. This will probably have to continue”.
He did not rule out new restrictions. “There will certainly be tightening in many areas so that we can combat the deficit”.
Regarding tax policy, Kutev said that for now the government is trying to avoid such a step, but he does not rule out changes. “So far, we are very wary of making changes to taxes. I personally do not rule out the possibility of imposing tax changes by the end of the year.
He again defended the idea of progressive income taxation. “I have always said that progressive income taxation is definitely something useful. The question of when it can be done is another matter”.
According to him, the current situation is not suitable for such a reform. “At the moment when we are clearly in crisis and have an excessive deficit, I am not convinced that the introduction of a progressive tax is relevant to the context”.
Kutev expressed pessimism about economic development next year. “I personally do not have good expectations for next year economically.“ He also warned of a possible cooling of the real estate market. “I suspect that properties are currently overvalued. I do not know if the bubble will burst, but that there will be a slowdown in growth and sales, I am absolutely convinced”.
According to him, Bulgaria is facing a risk of economic slowdown. “I think that an economic crisis, if not a European or global one, then at least in the Bulgarian version, is most likely coming”.
Kutev also commented on the case of the illegal housing complex in Varna, describing it as “scandalous”. According to him, the main problem is not only the violation itself, but the fact that the state allowed it to happen.
”The very fact that this can work this way is a problem. If we assume that they really blackmailed the mayor, because that's how it seems to me, then the question arises where the state was”, he asked.
Kutev emphasized: “The state is to blame”.
On the topic of the future of the old parliament building, Kutev said that its purpose must first be clarified. “In my opinion, the most important thing is what the building is intended for. Whether it will be for plenary sessions, an exhibition hall, a museum or something else".
He believes that the decision should not be made solely by politicians. "It is important to be clear about what the people of Sofia and Bulgarians want from this building, and to do what is necessary".
Regarding the upcoming presidential elections, Kutev said that there has not yet been an official decision on a candidate. "The party is still in the process of being structured and there are no governing bodies to make such a decision".
However, he is convinced that the formation has strong positions. "It is clear that we have huge chances at the moment to lead in this race".
According to him, the future candidate must combine two main qualities. "On the one hand, he must be recognizable and approved, and on the other - to a sufficient extent to uphold the key values that we stand for".
Commenting on possible candidates, Kutev said that certain public figures meet these criteria, but the final decision is yet to be made. “Presidential elections are a specific thing. Majoritarian elections are very specific and I think that we need to consider the candidates very carefully".