"With the introduction of the euro, Bulgaria will become more attractive to investors", Kristalina Georgieva, Managing Director of the International Monetary Fund, told Bulgarian National Radio.
She expressed satisfaction with Bulgaria's acceptance into the eurozone, but did not spare recommendations for Europe to be more competitive.
"The world has changed a lot in recent years. It is more uncertain, very polar. It is very good for Bulgaria to be part of the eurozone. This adds two things - more security and attractiveness of Bulgaria for investments, for tourists, it makes our country better known in the world. Bulgaria deserves to be in the eurozone because it has macroeconomic stability and because it has been implementing difficult reforms for decades. It can be seen in the economic situation in the country - unemployment is low, growth is high. In these conditions, we add value to the eurozone," she commented in an interview for the program "Saturday 150".
In the years after the crisis in the 1990s, the country adopted a position of fiscal discipline, Georgieva reminded and expressed the opinion that this serves us very well. She calls on Bulgarians to continue on this path. The risks today are higher than those that were before Covid, she noted and warned:
"We must be careful with the deficit".
According to her, the proposed budget protects fiscal stability. According to her, this is very important for people.
"It is seen that the most important factor for success is one - economic growth. If Bulgaria manages to achieve higher competitiveness and higher growth, this translates into higher budget revenues and, on this basis, opportunities to make higher expenditures".
The Managing Director of the International Monetary Fund defended the draft budget for next year and commented that with a deficit within three percent of the gross domestic product and a debt of 24 percent, our country continues to have a good macroeconomic position and at the same time encourages investments:
"I want to say a word in defense of the fact that the country strives to invest for growth, because there are great needs in Bulgaria to create an even better foundation for Bulgarian business and for those who decide to come and invest here".
The country needs investments, Kristalina Georgieva is categorical and reiterated that the most important thing for Bulgaria is high growth, high competitiveness and high attractiveness for investments.
According to her, the EU and the eurozone have shown remarkable resilience in a world of recurring shocks.
"Europe manages to maintain growth and manages to guarantee its citizens a good quality of life. But more is needed. The most important thing for Europe is to complete the single market project", she was categorical and listed what must be done:
"First - to create the 28th regime for company registration. Second - a banking union, a capital union. Today our savings go elsewhere. We must make our savings work for us. Without a capital market, this cannot happen. Third - to allow people not only to move from one country to another freely, but also to go with their qualifications. Today, the single market for the movement of labor is not completed. Fourth - a single energy market. My wish for Bulgaria is to use the fact that it has another seat at the decision-making table - to demand that Europe finish what it started - the single market.
On relations between Europe and the US, Kristalina Georgieva commented:
"The predictability of relations is no longer there. We must look ahead. What does this mean for Europe - to seek constructive relations with the largest economy in the world, but also to build relations with other markets. Europe's path is to build multi-layered partnerships and diversify its economic policy.".
Ukraine - we must think about the unthinkable
"The war is a tragedy that I did not believe I would witness in my lifetime. For a long time, we thought it was impossible for a country with a strong military position to attack a neighbor in Europe, but it happened. We must learn to think about the unthinkable," said the IMF managing director, emphasizing that the tragedy is for the whole world.
"Ukraine has taken a responsible position in terms of the country's economic policy - they are very disciplined. Ukraine has won back not only the right to exist, but also the right to be supported by its partners," she emphasized.
Support for Ukraine to continue
According to her, more than $140 billion has been provided to Ukraine under the IMF program. She declared that they are ready to continue supporting the country.
"I am convinced that Europe will find a solution on how to continue to financially support Ukraine. Europe has already made a huge investment in protecting Ukraine's right to have its own country, to have independence. With this investment, Europe has brought Ukraine closer, put it on the path to potentially being a member of the EU", Georgieva pointed out and added that the protection of Ukraine is not only the protection of Ukraine, but also for Europe.
"We will continue to support Ukraine and we will do so in partnership with Ukraine's friends. The world is united in defending Ukraine", she was categorical.
Regarding the EC's idea for the reparations loan, the IMF Managing Director expressed his opinion: "This is a decision of the EU member states. Our understanding is that the EU intends to continue supporting Ukraine with full support for the principle of respect for international law. Our understanding is that this European decision will be made with the full understanding that Europe stands by Ukraine and protects it within the framework of international law".
A world of shock after shock
The world economy has proven to be very resilient to shocks, Kristalina Georgieva also noted. According to her, the world's ability to invest in new technologies and environmental practices remains.
"But this growth is not enough to achieve all our goals. Our message from the IMF is - focus on the factors of labor productivity, on growth, so that you can have more opportunities to achieve these goals. Security concerns are higher now than before, the importance of protecting the citizens of Europe means more investment in defense. I see an understanding in Europe that we need to pay much more attention to European competitiveness and labor productivity to find a way to achieve all these goals on the basis of a more dynamic and stronger European economy.