Bulgaria's Ex-Energy Minister Predicts Recession by end-2013
Former Economy and Energy Minister and current MP of center-right party GERB, Delyan Dobrev, has suggested that Bulgaria will most likely fall into recession by end-2013 for the first time since 2009.
In a discussion with Korneliya Ninova, MP from the Bulgarian Socialist Party (BSP), on Nova TV on Sunday, he pointed out that unlike 2009, the upcoming recession would not come at a time when the other countries were also in recession but at a time when they were registering record-high quarters.
Dobrev, as cited by dnevnik.bg, emphasized that the socialist-led coalition government had failed to achieve tangible results in the fight against unemployment in its first 100 days in office, despite the election promises of the socialist party.
He predicted that the unemployment rate would grow in winter against the backdrop of a lack of economic growth.
He also reminded of the controversial appointments of the government headed by Prime Minister Plamen Oresharski and the budget revision envisaging a new loan of BGN 1 B for the purpose of a package of social measures of BGN 40 M.
"A hundred days of lack of investments, which are already heading to zero, of permanent unemployment, which remained frozen even in the summer months, despite the generous promises to boost employment," Bulgaria's ex Economy and Energy Minister declared.
"The worst is that companies do not feel secure and this is why there are no investments," he announced.
He noted that the positive aspect of the work of the current government was the fact that it had backpedaled on a large part of its election pledges.
"They gave up the idea to abolish the flat tax and the introduction of income taxation on a family basis, at least at this stage. They kept the tax on interest earned from bank deposits, they removed the tax incentives for young families. These are all steps in the right direction and they preserve the financial stability," Dobrev added.
Ninova, in turn, emphasized that the social security measures adopted by the affected as amny as 1.2 million Bulgarians.
As an achievement in the economic sphere, the socialist MP cited the payment of overdue obligations of the state and VAT recovery, through which the government had indicated that it would be a loyal partner to the business sector.
"This is the great success, the normalization of the economic environment, the assistance to the business sector so as to make sure that it functions and creates jobs, thereby helping the most vulnerable and underprivileged," Ninova said.
- » Nearly 1000 Firms in Bulgaria Delayed Salaries in 2013
- » Bulgarian MPs Mull Tax on All Types of Electricity Producers
- » Construction of Zinc Plant in Bulgaria's Kardzhali to Start in 2014
- » Bulgaria Mulls Setting Up Agency to Restrict Land Use by Foreigners
- » Ski Resorts Most Popular New Year's Destination for Bulgarians
- » Ordinance to Curb Construction Public Procurement Appeals in Bulgaria