Bulgaria's Revised Budget under Fire from Right, Left

The co-Chairs of Bulgaria's right-wing Blue Coalition – the DSB leader, Ivan Kostov, and the UDF leader, Martin Dimitrov (r), demand guarantees the ruling GERB will carry out the planned structural reforms. Photo by BGNES

Bulgaria's right-wing Blue Coalition declared Tuesday they will not back the cabinet's updated 2010 budget unless their demands are met.

The co-Chairs of the Coalition – the leader of Democrats for Strong Bulgaria (DSB), Ivan Kostov, and the leader of the Union of Democratic Forces (UDF), Martin Dimitrov, already met twice with Prime Minister, Boyko Borisov, and Finance Minister, Simeon Djankov, to ask for guarantees the ruling Citizens for European Development of Bulgaria (GERB) will carry out the structural reforms and for optimizing the layoffs in the public sector.

The “Blues” further warn about a looming political crisis if the budget update does not pass in the Parliament on second read, but declined to offer more details, only saying “this is what history had shown.”

The right-wing's main criticism is geared towards the cuts at the Health Ministry and the stalled health care reform.

During the Monday meeting Djankov promised them the reduction of the health budget would be not BGN 160 M, but BGN 106 M. It is expected that patients will have BGN 26 M less for medications from the budget and BGN 115 M less for diagnostics and treatment, which the “Blues” oppose.

In addition, the right-wing demands clear and upfront information how the cabinet will use the BGN 1.2 B from the fiscal reserve to be transfered under the direct authority of Borisov, who will be able to spend them without asking the Parliament when there are “unforeseen and emergency expenditures.”

Meanwhile, the opposition ethnic Turkish party, Movement for Rights and Freedoms, (DPS), declared as early as last week that they oppose the above move, which gives the PM the opportunity to spend billions without any Parliamentary control, DPS say, vowing to not support the updated budget.

The opposition Bulgarian Socialist Party (BSP) also said Tuesday they want to know for what and how exactly the BGN 1.2 B will be spent.

The BSP leader, Sergey Stanishev, pointed out the Socialists will not support the revised budget because they further want explanations about revenues going down by BGN 2 B, and ask to not cut municipal budgets, as the update provides.

Stanishev also commented that the upcoming investigative mission and audit of the statistical office of the European Commission, Eurostat, shows Bulgaria is loosing the EU trust because the cabinet constantly changes its data and forecasts.

BSP accuses GERB of lying about the budget deficit stemming from BGN 2 B in hidden contracts concluded by the previous Socialist-led “Stanishev” cabinet and reiterated demands these alleged contracts must become public knowledge.

GERB, however, continue to enjoy the unwavering support of the far-right, nationalist Ataka party. With their vote they will be able, once again, to secure the needed Parliamentary majority.

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