EU governments, including Bulgaria, need to intensify their efforts for reforms and financial dicipline if Europe is to overcome the financial crisis, stated a team of Bulgarian economists Sunday.

The Macro Watch team, a project of Open Society Bulgaria since 2007 unites experts from the most high-profile Bulgarian ecnonomics think tanks.

"The crisis in Europe deepens, negative scenarios for the European economy are ever more likely and this requires an immediate and resolute reformist answer on the part of governments, including Bulgaria," stated experts.

They also said they believed the crisis will "deeply redefine" the EU, but it is not yet clear which way the Union will take.

"The EU needs strict rules for financial discipline and reforms, and member states that do not follow them need to be punished, including by termination of membership. At the same time, reformist disciplined members need to be rewarded."

The Macro Watch team in particular specified that although Bulgaria has followed a consistent policy of fiscal discipline, it is not immune to risk and needs to implement tighter austerity.

"Bulgaria needs a worst-case scenario state budget for 2012 to create the maximum amount of buffers," argue the analysts.

They also state that the government needs to be resolute in reforms, cutting down both inefficient structures and spending.