How big is the risk of losing money on PVU?
"This has been clear for quite some time that it will happen, even, unfortunately, it was programmed from the beginning. Thus, during the time of the "Petkov" cabinet, when the Plan for Recovery and Sustainability was submitted in its final version, a number of conditions were set, which are related to changes in the legislative framework in Bulgaria. Unfortunately, at that time these conditions were clearly not communicated to the other major parties and commitments were made that cannot be fulfilled.
This is what former Minister of Economy Nikola Stoyanov said in the studio of "Denyat ON AIR".
He reminded that there are eight payments and we still can't even get the second one.
"Here we are still in the preliminary stage - to get the money, what we have to do. At a time when you lead the country with a fragile coalition, you set goals that are for years to come. You set conditions that are okay for you, but not for others. The truth is that after the changes that were made in the Constitution, we are seeing their results and it is a little scary to give trust support," added Stoyanov for Bulgaria ON AIR.
In his words, the Treasury is "fighting for survival" because of the frequent elections.
"Toward the end of July, we are a billion in the red, as usually for this part of the year we are better off. This year we are moving worse, that will be the main challenge. Planned investments are cut. The bad thing is that it gradually enters a spiral, as these frequent elections have led to violent populism, incomes rise and outpace expenditures. Unfortunately, this will not work because there is no free lunch", stressed the former minister.
According to him, the consequences will be long-term.
"The interest rates here are one of the lowest in the entire EU, and by quite a big margin, when I'm talking about individuals and mortgage loans. A struggle is starting to be in an excessive deficit because of the Eurozone, because we have to stay in the three percent. But every year we will be on this edge - 3%. All government investment is being cut and we are at record low levels of foreign investment. No money comes into Bulgaria from anywhere. The good thing is that private business in Bulgaria turned out to be very viable and the Bulgarian economy is growing at a very good pace," Nikola Stoyanov is emphatic.