The European Commission recommended that Bulgaria be placed in an excessive deficit procedure, which is a clear signal of the need for immediate consolidation of state finances. This became clear during a joint appearance by financier Levon Hampartzumyan and former Social Minister Hristina Hristova on the national television NOVA. Both experts were categorical that the state must urgently balance its revenues and expenditures in order to avoid a serious financial crisis.
According to financier Levon Hampartzumyan, the European Commission's recommendation is a serious remark to our country. He commented on the situation with the words:
"If you keep doing it like this, your finances will be on the verge of a catastrophe, and that's why you need to take measures early enough to consolidate your budget."
Hampartsumian stressed that the economy is currently stable, and unemployment is at historically low levels of around 4.3%, which means that there is still time to react without panicking. However, the famous financier also issued a serious warning to politicians:
"Let's not forget - there is no bottom to go down. It could be much worse. It is better to stop blaming each other and put things in order as they should be."
Former Minister of Labor and Social Policy Hristina Hristova recalled that a serious reduction in state spending is inevitable, but this is guaranteed to affect specific public and political interests.
The main measures that are outlined to control the deficit include:
Reducing the number of employees in the state administration;
Stopping the automatic mechanisms for annual mechanical increase in salaries in the public sector;
Freezing or tying the salaries of people in senior state and political positions to specific results;
Introducing objective criteria in education, based on the grades from the matriculation exams and the international PISA studies.
The Ministry of Finance has already reported a deficit of 4.35 billion euros in the red, to which are added over 1.02 billion euros of unpaid activities. Experts point out that the new state budget, which is expected to be considered at the end of the summer, will be extremely difficult and short-term.
Kristina Hristova said that over the past four years, politicians have made many unwise financial decisions due to the constant pre-election situation in the country. She added that in addition to limiting spending, the government must closely monitor geopolitical tensions in the Persian Gulf and the surge in fuel prices, which may require additional support for energy-intensive enterprises and the poorest citizens.