The date January 1, 2025 is still feasible for our entry into the Eurozone, but when several factors are met. Inflation is the least of the problems. This is what he said on the air of "Your Day" the former Minister of Economy Nikolay Vassilev.
"We do not meet this criterion, but if only this remains, a political compromise can be made. One of the causes of inflation is our domestic budget policy and huge deficits. There were also large expenses not covered by revenue and an ever-increasing debt. In general, we pursued a pro-inflationary policy," he commented.
Vasilev called for an end to all unnecessary government spending. "The administration is bigger than when I was minister, and the population is a million less. Why? Capital expenditure may be replaced by the private sector through concessions. There better be wonderful highways, in whatever model we concession them. During the Triple Coalition, foreign investments reached 30% of GDP, now they are only 3. There are countries that are growing, including the Balkans. They have billion-dollar projects, and we don't have any," said the former minister.
Today is the kind of Tax Freedom Day. This is the hypothetical date on which we would replenish the state treasury if everything we produce since the beginning of the year goes only to the benefit of the budget. This is according to an analysis by the Institute for Market Economy. According to Vassilev, it would be better if this day comes earlier in May.
"We must take measures to reduce the deficit. For example - by cutting costs. Bulgaria has a low debt - over 20% of GDP, thanks not to the last 3 years, but to the governments between 1997 and 2008. Then it decreased terribly. A country with such indicators deserves a three times higher credit rating," the economist believes.