Bulgarian Parliament Committee Passes Constitution Change for Fiscal Stability

Domestic | June 28, 2011, Tuesday // 13:10|  views

File photo of Bulgarian Minister of Finance Simeon Djankov (L) and PM Boyko Borisov (C) shaking hands in Parliament. Photo by BGNES

The so-called Financial Stability Pact, involving amendments in the Bulgarian Constitution, was approved by the ad hoc parliamentary committee devoted to it amid opposition protests.

The pact was defended by its mastermind FinMin Simeon Djankov, who argued that it will ensure recovery and stable growth for the country.

The Financial Stability Pact includes enshrining the following rules in the Bulgarian Constitution: a qualified 2/3 majority in parliament for changing taxes in Bulgaria, a 2% limit to the budget deficit, as well as a 40% of GDP limit for redistribution.

Ognian Stoichkov from nationalist party Ataka argued that such measuers are not fit to be constitutionally enshrined, and further that they could adversely affect areas of public spending such as education.

"The Stability Pact dooms Bulgaria to persisting and long-term poverty," argued Bulgarian Socialist Party MP Yanaki Stoilov, who saw it as a continuation of the neo-liberal policy which according to him had brought on the financial and economic crisis to start with.

Fellow socialist Rumen Ovcharov argued that the move by the center-right GERB cabinet and MPs lacked any reasoned substance and was just a piece of pre-election fireworks.

Aliosman Imamov from the Movement for Rights and Freedoms argued that it is not clear how the pact will affect the income of people and confessed of an overall skepticism of the project, saying his fellow MPs will abstain from discussions.

Ekaterina Mihaylova from the Rightist Blue coalition partly agreed with the proposal, but argued against the introduction of qualified majority for changing the tax system.

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Tags: Financial Stability Pact, Simeon Djankov, Rumen Ovcharov, Aliosman Imamov, Yanaki Stoilov, Ekaterina Mihaylova, Ognian Stoichkov, deficit, tax, taxes, redistribution, Bulgarian Parliament, Bulgarian Constitution


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