Zuddeutsche Zeitung: Bulgaria - Europe's New Fraudster

Bulgaria was forced to delay plans to adopt the euro on Friday when it revealed a hidden budget deficit. Photo by EPA/BGNES

Fearful of a replay of what has happened in Greece over the past year, the prestigious German newspaper Zuddeutsche Zeitung has called Bulgaria, suffering from new budget woes, the new “euro-fraudster”.

"The nightmare is right next-door,” Zuddeutsche Zeitung wrote in an article about Bulgaria's decision to delay plans to adopt the euro after it revealed a hidden budget deficit.

The publication, entitled “The next euro-fraudster”, cites the statement of Bulgaria's Prime Minister Boyko Borisov, who says it is very important to avoid a repeat of the Greek scenario.

“The poor country does not want to go downhill. That was exactly what happened to its neighboring Greece, which continues its painful struggle for financial survival,” the article says.

According to the author this is the reason why the Bulgarian prime minister and finance minister raised the alarm on Friday that the 2009 budget gap was 3.7% of gross domestic product rather than the 1.9 % reported under European Union rule and dropped plans for euro adoption.

The article points out that the decision came as a surprise, because so far the country had cast itself as a paragon of fiscal rigor, a model for the other European Union members.

“Just two years ago the former government reported budget surpluses and last year the deficit was said to be much less than the three percent barrier set for euro area members and applicants,” Zuddeutsche Zeitung said, adding that the new Bulgarian government has found itself in a trap over suspected abuse of power in signing some 150 deals.

“Deliberate or not, this "lie" will thwart Bulgaria's ambitions to enter the eurozone waiting room this summer, the same holds true for its plans to adopt the euro in 2013,” the author concludes.

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