Bulgaria's PM: More Taxes Will Not Solve Crisis

Greek daily Naftemporiki has published an interview with Bulgarian Prime Minister Plamen Oresharski in which he argues that increasing tax rates will not solve the crisis.

In the interview, as cited by the government's press office, he comments on the impact of the crisis, which hit European economies in end-2008, on Bulgaria.

He emphasizes that, although Bulgaria avoided financial turbulence thanks to the reasonable financial and fiscal policy before the crisis, the country registered a decrease in economic growth by over 6% in the period 2004-2008, reaching negative values in 2009, as well as reduction in foreign direct investment by BGN 9 B in 2007, to a rate of below BGN 2 B in 2012, and a nearly double increase in the unemployment rate, which substantially damaged incomes of the population.

Oresharski argues that Bulgaria's existing tax system, introduced during his term in office as Finance Minister, is among the incentives encouraging investment.

He points out that Bulgaria has to deal with corruption, which he defines as symptomatic for the entire Balkan region, citing international surveys indicating that the different areas register insignificant differences on the corruption indicator.

"I believe that we have to counteract it by fighting the preconditions, not the consequences," he stares, adding that greater transparency, clearer and simplified procedures, and less red tape are tools for overcoming corruption.

He suggests that the anti-government protests, which have been going on for nearly 5 months, and the protests in defense of the socialist-led government, are a sign of democracy returning to Bulgaria "after four years of attempts at establishing a one-man, quasi-dictatorial rule."

Orasharski also dwells on the initiatives of the government aimed at providing job opportunities for young people.

"We are working on programs to secure a first job for young people, which are subsidized with EU funds and from the national budget. Meanwhile, we stopped the increase in the retirement age in order to free up more job places for the young. The most efficient measure, however, is economic growth. Any other measure has a limited impact, unless economic development exists," he states.

Bulgaria's Prime Minister says that he backs the initiative of Greece, proposed in connection with the country's upcoming EU presidency, for a common approach to migration and the establishment of a Common European Asylum System.

"I believe that the burden of immigration pressure from the past few years has to be more evenly distributed among all EU Member States, and not left entirely to southern Europe," he reasons.

In conclusion, the Prime Minister expresses hopes that the Balkan countries will be among the top performers as regards the implementation of the Europe 2020 strategy, which will allow bridging the gap with more developed European countries and providing greater well-being for the people in Bulgaria and Greece.

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