How many Times were Diplomatic Relations between Russia and Bulgaria Severed
If we look at history, there are not many cases in which relations between Bulgaria and Russia at the state level were as bad as they are at the moment.
Good-bye, Macroeconomic Stability
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Photo by Yuliana Nikolova (Sofia Photo Agency)
As was to be expected, the Bulgarian government finally caved in to the demands of wage hikes for employees in the state sector.
It was to be expected, really - there are ten days left before the European Parliament elections and scarcely half a year before the local ones.
The government has money to burn, as the budget surplus should exceed BGN 1 B this year, but blowing it on wages is by far the worst thing to spend it on.
Everyone wants higher salaries - the employees of the capital's heating utility firm got their wish, and it looks like a lot of people in the transport and utility sectors, where the state is still the biggest employer, will get theirs too.
That is hundreds of millions going out of state coffers, in one shape or another, and straight into consumption, which means a bigger trade and current account deficit, as well as higher inflation.
And that just three days after the International Monetary Fund (IMF), a pretty shrewd judge of character when it comes to checking the free spending of governments in emerging markets, warned the cabinet that it should aim to save more and spend less, as well as doing so wisely.
Just more proof, if it were needed, that today's Socialists are no different from those who took Bulgaria to the brink of ruin barely a decade ago, pouring millions into the black holes of loss-making state companies instead of addressing the reasons behind those losses.
All subsequent cabinets have made only half-hearted efforts to restructure those companies, partially because that meant huge investment, which the government could not afford, and partially because it required huge lay-offs, which is equivalent to political suicide.
Unsurprisingly, the Socialists are loathe to relinquish the power they won after a painful eight years in opposition, and are willing to pay any price in order to cling to it.
Even if that means ruining the hard work of previous cabinets to redress the mess they created.
It was to be expected, really - there are ten days left before the European Parliament elections and scarcely half a year before the local ones.
The government has money to burn, as the budget surplus should exceed BGN 1 B this year, but blowing it on wages is by far the worst thing to spend it on.
Everyone wants higher salaries - the employees of the capital's heating utility firm got their wish, and it looks like a lot of people in the transport and utility sectors, where the state is still the biggest employer, will get theirs too.
That is hundreds of millions going out of state coffers, in one shape or another, and straight into consumption, which means a bigger trade and current account deficit, as well as higher inflation.
And that just three days after the International Monetary Fund (IMF), a pretty shrewd judge of character when it comes to checking the free spending of governments in emerging markets, warned the cabinet that it should aim to save more and spend less, as well as doing so wisely.
Just more proof, if it were needed, that today's Socialists are no different from those who took Bulgaria to the brink of ruin barely a decade ago, pouring millions into the black holes of loss-making state companies instead of addressing the reasons behind those losses.
All subsequent cabinets have made only half-hearted efforts to restructure those companies, partially because that meant huge investment, which the government could not afford, and partially because it required huge lay-offs, which is equivalent to political suicide.
Unsurprisingly, the Socialists are loathe to relinquish the power they won after a painful eight years in opposition, and are willing to pay any price in order to cling to it.
Even if that means ruining the hard work of previous cabinets to redress the mess they created.
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