Bulgaria will stand for keeping its tax rates, currently the lowest in the EU, thus seeking an opt-out from the new EU Fiscal Pact, Bulgarian PM Boyko Borisov has declared before the start of the European Council Summit.

"Tax policy must remain the priority of each member state," Borisov stated in Brussels Thursday night, as cited by BNR.

On Friday, Bulgaria will join the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union or the so-called EU Fiscal Pact, which aims at encouraging budget discipline, increasing coordination of economic policies and better management of the Eurozone.

On Wednesday, the Bulgarian cabinet gave the final go on the country signing the pact by authorizing Borisov to do so.

Upon signing, Bulgaria will present a political declaration referring to the period before the country joins the euro zone on the application of part 4 of the EU fiscal treaty which refers to the coordination of economic policies, thus declaring a de facto Bulgarian opt-out from some provisions such as the harmonization of tax policies.

Bulgaria's 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.

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