Stanislav Popdonchev, Deputy Chairman and Financial Director of the Bulgarian Chamber of Commerce, expressed concerns over Bulgaria’s economic direction, particularly regarding the goals of joining the Eurozone and Schengen. In a recent interview with BNR, he highlighted that these goals were crucial for economic growth but were currently sidelined due to the lack of a stable government.
Popdonchev emphasized that while Bulgaria was making progress towards meeting the Eurozone criteria, the country did not yet have a clear date for joining. He stressed that if Bulgaria hoped to secure entry into the Eurozone until 2025, it was essential to avoid drastic changes, especially those that might increase inflation.
He also criticized the ongoing political instability, which has hindered the country’s ability to follow proper budget procedures. Popdonchev warned that this lack of consistency created a negative impression with Bulgaria’s European partners, showing that there was no resolution to the political crisis. Furthermore, he pointed out that businesses were facing a dangerous situation due to the budget uncertainty and the government’s inability to manage spending effectively.
The financial expert noted that while Bulgaria was collecting taxes more efficiently than ever before, government spending was outpacing economic growth. This trend is unsustainable, he argues, leading to a situation where some businesses are relocating to other parts of Europe. He also observed that the growth of industrial production had been negative for the past 22 months, highlighting the growing disconnect between the country’s economic policies and broader European trends.
Popdonchev argued that the solution did not lie in changing taxes, but in attracting investments. He stressed the unpredictability of the business environment and mentioned that state administration was becoming a more attractive employment option due to automatic salary increases, which were not available in the private sector.
Furthermore, Popdonchev criticized the country’s unreformed systems and the rise in social security contributions, stating that simply increasing contributions would not lead to positive outcomes. He also noted that several populist measures, such as the continuation of COVID-related pension supplements, had distorted the pension system. He warned that if such bonuses continue, the minimum pension could eventually match the average, undermining the system’s sustainability. (Novinite)