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Kuzman Iliev: Our economic model is wrong, we live on a loan

The green transition must be smarter. When the RAP was being made, the state should have prepared it not administratively with some experts, but the business should have been called in order to make a reasonable plan for transformation, commented the expert

Sep 29, 2024 14:58 65

Kuzman Iliev: Our economic model is wrong, we live on a loan  - 1

New technologies should be introduced sensibly, not on the basis of an ideology. This is what Kuzman Iliev, economic expert and chairman of the non-governmental organization "Bulgaria can" called for on the air of BNR.

"There is a cost-effective way to implement them. It is wise to think strategically and take things in stages – to decommission the old and transform them. But because we have an uncertain political environment, nobody thinks in a long corridor".

Let the production of electricity from coal plants have some derogation from the quotas with which it is paid, he also suggested.

"Practically, this tax should not be paid by the Bulgarian power plants, because we also provide electricity to Ukraine. For us, this is our own resource.

The green transition must be smarter. When the RAP was being made, the state had to prepare it not administratively with some experts, but the business should be called in order to make a reasonable plan for transformation".
Kuzman Iliev commented on the warning of the Ministry of Finance about the risk of the loss of 1.7 billion under the PVA.

"We might lose them. On the one hand, it means moving away from the benchmarks we are trying so hard to meet, for the deficit along the eurozone lines. But if we do a more strategic analysis, even if we lose that money, it won't be so scary. There are many, but Bulgaria's energy security stands against them. If we run out of coal plants, which will be the case if we go all out and take that notorious money, we become extremely vulnerable in terms of our energy security. At some point it may turn out that we don't just have electricity very expensive, not only is gas very expensive, but there is none. Most likely, we will have to give up this money if we do not want to lose something much more important.
When the Germans realize that they have turned from an industrial colossus into one with feet of clay, we will understand that our problems are much more severe, he also explained in the show "Sunday 150". on the occasion of the observed recession in the so-called "economic engine of Europe".

"For us, problems come later, but more severely. We have seen it in all crises. Germany is our main trading partner.
Our economic model is wrong, we are living on loan and the effect of this whole thing is that we are the fastest melting nation in Europe, noted the economic expert.

"Maybe it is time to rethink the political system in Bulgaria. We lack political responsibility and horizon".

Kuzman Iliev analyzes the report on the competitiveness of the European Union, prepared by the former governor of the European Central Bank, Mario Draghi, at the request of the President of the European Commission, Ursula von der Leyen.
It states that between 750 and 800 billion euros per year of investment is needed additionally by the European Union for radical and rapid reform to overcome the lag behind the United States and China. The sum represents up to 5% of the EU's GDP.

"Mario Draghi's country is in the Top 3 of the most indebted in the world. He starts from the position of a bureaucrat who will not pay the bill. I don't think he's the man to trust us to make any plan.