Vienna Institute: Govt Guilty for Bad Economy in Bulgaria

The Vienna Institute for International Economic Studies has stated that the wrong anti-crisis measures, taken by the ruling party GERB, have deepened the economic crisis in Bulgaria. Photo by BGNES

The economic crisis in Bulgaria has deepened due to the wrong anti-crisis measures the government has taken, experts from the Vienna Institute for International Economic Studies have announced.

In a report on the economics of the countries from Central and Southeastern Europe, the experts have stated that while most of the European countries have started to recover from the economic crisis in the first three months of the year, Bulgaria's GDP has dropped by 3,6% in comparison to the same period last year.

“This has put Bulgaria at one of the last places among the European countries. Since the Bulgarian economy has been relatively stable before the crisis, the reasons for the current situation should be searched for inside the country itself,” the report said.

The experts have also criticized the Bulgarian government's strategics in the fight against the economic crisis. They have said that the only clear goal of the current cabinet has been the entering of the eurozone, which, in their words, has been an unrealistic goal, announced at the wrong time.

Another irrational anti-crisis measure, according to the institute, has been the retention of budgetary payments, especially to companies, working on public procurements. The report has stated that this has had a negative effect not only on the Bulgarian economy, but also on the investors's trust in the country.

The Vienna Institute have also stated that in the past year the Bulgarian government has deserted its preliminary announced strict tax policies and has replaced them with “extensive populist spending”. The experts have stated that the unclear and constantly changing political course in Bulgaria has had a negative effect on the trust in the economy by investors and consumers.

“If the wrong macroeconomic policies in Bulgaria continue, the economy in the country will get worse again,” the report warns.