Bulgarian PM Joins EU Summit on Fiscal Pact

Bulgaria's Prime Minister, Boyko Borisov, is taking part Monday in the first for 2012 EU summit where the final text of the Fiscal Pact should be approved. Photo by BGNES

Bulgaria's Prime Minister, Boyko Borisov, is taking part Monday in the first for 2012 emergency meeting of the European Council in Brussels.

European leaders are expected to approve the final text of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union or the so-called EU Fiscal Pact.

Great Britain is the only EU Member State that has firmly declared it would not back the treaty. Poland is expected to announce its decision, but it had warned it would not support it if it doesn't give an observer status to countries outside the Eurozone, something Bulgaria requests as well.

Bulgaria's Parliament approved Friday the draft decision for joining the Treaty.

The decision states that in joining the Pact, Bulgaria should not assume fiscal responsibilities and will not coordinate its economic policy with the one of the countries in the Eurozone; will not harmonize taxes with the Eurozone, and will have a status of observer at meetings of Eurozone members.

Another condition is for the rules to be valid for the entire EU, without exceptions and parallel structures. The decision also states that Bulgaria will fully endorse the Treaty and will contribute to the European Stability Fund after joining the Eurozone.

The agenda of the Brussels summit further includes discussions on measures to increase employment, encourage small and medium business, and increase competitiveness. A common document on these measures is expected to be adopted at the next such meeting in March.

Experts say with it France Germany will try to impose their idea for tax harmonization in the EU.

The document was distributed by the cabinets of the two countries in the eve of the summit. It includes six priorities – countering unemployment, developing instruments for financing the business, better use of the EU funds, increasing regulations for financial markets, modernizing public administration, and improving access to outside markets.

Meanwhile, Belgium has been gripped since Sunday evening by a general strike against budget cuts, which could become an obstacle for the arrival of the EU leaders.

The Belgium authorities announced they are prepared to mobilize military air control dispatchers to redirect VIP aircraft to alternative airports from where passengers will be taken to Brussels in military helicopters and vehicles.

It remains unknown if the labor unions will use their customary tactic of blocking the highways at the entrances of Belgium's capital.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!