The Managing Director of the International Monetary Fund Kristalina Georgieva told BTV that Bulgaria has “worked out“ its entry into the eurozone and deserves recognition for what it has achieved. She stressed that the country must maintain its stability, as “the world is shaking and the winds are strong“, reports News.bg.
Georgieva pointed out one positive and one negative trend. The good news is that Bulgaria has managed to increase its attractiveness for investors. The bad news is that after successes, relaxation often follows. The biggest risk, she said, is that the country starts spending more than it produces.
She stressed that Bulgaria has “an earring in its ear“ since the 1990s and must maintain a responsible approach to public finances. According to her, politicians are working in a complex environment, seeking compromises, but despite this, the country manages to maintain strong economic indicators - investments, active business and stability. Georgieva insisted that actions be directed towards a vision for the country's development over the next 5-10 years.
She called for wages not to increase without a connection to labor productivity, and for the budget to be structured in a way that spends citizens' funds responsibly. Policies must focus on investments if politicians “want to get the job done”, she added.
Georgieva noted that the world is going from one shock to another - a pandemic, a war in Ukraine, inflation, high interest rates and fears of recession. Although a recession has not occurred, growth remains weak, and global debt is moving towards 100% of GDP. This means that money that should be invested in education, infrastructure and technology is being used to cover liabilities.
She stressed the need for higher productivity and more effective cooperation between people. The domestic political and international environment is much more complex, and climate change requires rapid adaptation. According to Georgieva, the European project is unique, but the EU is “cycling in one place“.
She warned that Europe cannot be highly competitive with the current structure of its energy.