Bulgarian Socialists Oppose Sapping Fiscal Reserve

Leader of opposition Socialists Sergey Stanishev has slammed the Borisov government over its intentions to sap the fiscal reserve. Photo by BGNES

The plans of the Bulgarian government to use money from the fiscal reserve will threaten the country's financial stability, according to Socialist Party leader and former PM Sergey Stanishev.

“The intention of the Borisov government to use BGN 2 B from the fiscal reserve will put at risk the entire financial situation in the country and the currency board,” stated Stanishev at a press conference today, as cited by BTA.

BSP's statements come in the wake of information revealed by Bulgarian trade unions that the plans for revision of the 2010 state budget will allow fiscal reserve to slump from BGN 6.4 B to BGN 4.5 B at the end of the year.

The Bulgarian government has not made public yet the draft law for the budget revision that it has submitted to the Parliament but according to unofficial reports it will allow the government to reduce the fiscal reserve below the legally required minimum of BGN 4.5 B in the course of the year as long as it manages to restore that amount by December 2010.

The Socialists also severely criticized government plans to revise the current budget and castigated the ruling center-right GERB party for the effects of its efforts to muster European funds in order to help the country's stalling economy.

Bulgaria has slumped from 14th to 26th place in the EU in the acquisition of EU-funds, revealed Stanishev, basing his claims on a letter from European Commission DG Regional Policy, Dirk Ahner.

The chair of BSP's Council on Local Governance and Regional Policy Dimcho Mihalevski stated that this was due to 8 months lost in the government's work in the field of EU-funds.

“The 2010 budget lists more than BGN 2.7 B as expenses from EU-programs. At this point 22% of these funds are acquired, while one-third of the time available is over”, said Mihalevski.

The Socialists also objected to the government's anti-crisis measures as inadequate and “wasting time” and expressed worries at the growing unemployment.

Last weak the leaders of the center-right Blue Coalition, which has been supportive of GERB's government, also criticized its anti-crisis measures and budget plans.

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