Right Wing Leader: Pay for EU Stability Threatens Bulgaria

Bulgaria in EU | December 12, 2011, Monday // 14:08|  views

Bulgaria's DSP leader and former Prime Minister and Finance Minister, Ivan Kostov, is firmly against payments in the Eurozone Stability Fund. Photo by BGNES

Bulgaria cannot participate with a monetary deposit in the new mechanism for Eurozone assistance through the International Monetary Fund, IMF, not at least until the EUR becomes the country's currency.

The statement was made Monday by the leader of the right-wing party Democrats for Strong Bulgaria, DSB, and former Prime Minister and Finance Minister, Ivan Kostov.

Kostov warned that such contribution would end up being a huge amount of money for the struggling country – over BGN 3 B, meaning that all EU funding for Bulgaria through different operational programs will have to go back to the Stabilization Fund. He was firm a consensus on the issue is a must, and the cabinet must launch immediately a debate to outline a nationally-responsible Bulgarian position to help citizens and the business plan their activities.

The DSB leader said he was applauding the decision, made at the last for 2011 summit in Brussels of EU leaders, to introduce strict fiscal rules and sanctions against high budget deficits, but stressed that this agreement would be detailed further, negotiations on it are pending, and it was unlikely to resolve the debt crisis in some countries.

He declared his firm opposition to tax increases or the introduction of a common European tax.

"As the people who created the stability of the country's monetary and bank systems and its public finances, we insist for the Bulgarian institutions to analyze in depth the risks for the financial system in order to not allow the EUR crisis to shake the stability of the Bulgarian lev and citizens' deposits," Kostov stressed.

When asked if he party was going to support the veto of outgoing President, Georgi Parvanov, on the retirement reform, the right-wing leader replied it would, but not because it was coming from the President, but because the party Members of the Parliament voted against it. He voiced expectations the matter will go all the way up to the Constitutional Court.

Regarding the 2012 State budget, Kostov pointed out he saw it as a budget of the status quo, without reforms and without any solutions for the education, health care and administration sectors.

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Tags: State and Public Social Security Act, veto, president, Georgi Parvanov, pension reforms, pension reform, retirement reform, IMF, fund, stability, Eurozone, DSB, Ivan Kostov, budget, sanctions, fiscal rules, deficit, Stabilization

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