Bulgarian Rightists Call Joining 'Euro-Plus-Pact' Govt Blunder

Martin Dimitrov, leader of Bulgaria's rightist SDS party. Photo by BGNES

The government has made a huge blunder with Bulgaria's accession to the "Euro-Plus-Pact" because the country is becoming a guarantor of unaffordable loans, said Martin Dimitrov, leader of the rightist Union of Democratic Forces (UDF).

In his words, the Bulgarian government does not realize the commitments it is undertaking.

This week, Bulgaria's PM Boyko Borisov presented to the parliament the country's position to join the "Euro-Plus-Pact" – a deal for closer economic coordination between Euro Area states and non-euro countries which volunteered to join.

Bulgaria will have to pay EUR 300 M in the first 12 years after it joins the euro zone, in five equal installments, according to an estimate of the Bulgarian Finance Ministry, Deputy Finance Minister Boryana Pencheva announced Friday in Brussels.

"Bulgaria is becoming a guarantor for an initially loan of EUR 3 B, and later for EUR 6 B, which is 1/6 of the country's GDP. We support the EU and the euro, but Bulgaria is the poorest European country and this is too much to take," Dimitrov said.

In his words, the other serious problem that stems from Bulgaria's accession to the "Euro-Plus-Pact" is the demand of several European countries for harmonizing of the taxes across the EU.

"The Union of Democratic Forces proposed the introduction of the 10% corporate tax and flat tax. But the harmonization of taxes across the EU will be disastrous for Bulgaria," he said.

Dimitrov pointed out that the Bulgarian commitments are to be negotiated in the parliament.

"We should not agree with everything that the EU proposes to us. We should rather participate actively in the formation of the European policy," he said.

The UDF leader expressed his party concern over escalating prices and urged the government to take hold of the situation. The party also asked for immediate end to the Belene NPP project.     

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