Former Finance Minister Simeon Dyankov has expressed concerns about Bulgaria’s eurozone prospects, warning that the country may be moving away from joining for years, potentially indefinitely. Speaking to Bulgarian National Radio, he suggested Bulgaria’s timeline has shifted at least two years forward, potentially targeting 2029. Dyankov criticized what he described as “two clumsy attempts” to introduce a large budget deficit, calling recent fiscal moves “a stupid step.”
Dyankov pointed to proposals allowing expenses not offset by real revenues, warning that they could lead to significant deficits. He argued that such moves lacked sound financial planning and suggested that external intervention might be needed to rectify the situation, as the current approach defied established expertise. Despite these challenges, he expressed confidence that experienced parliamentarians would not support such measures.
The former minister highlighted inconsistencies in the 2025 draft budget, noting a proposed deficit of 15 billion leva, far exceeding the 6 billion leva necessary to maintain a 3% deficit. He suggested that the caretaker government withdraw the draft budget, as its proposed 8% deficit raises concerns among financiers in Brussels and the European Central Bank. Dyankov also criticized the inclusion of fabricated expenditure items, such as tax forgiveness and flagged artificially inflated VAT revenue estimates.
Protests, he argued, are inevitable given the unsustainable fiscal policies of the caretaker government. Dyankov believes that such proposals are unfeasible and reflect poor governance. He also acknowledged a sharp decline in foreign investments, which he described as a major issue.
Discussing political prospects, Dyankov noted an increased likelihood of a coalition government involving GERB, Democratic Bulgaria, There Is Such a People and BSP, citing the mistakes of the caretaker administration as a unifying factor. He expressed optimism that Bulgaria could form a regular government by early February.
On broader economic topics, Dyankov predicted the revocation of Eurohold’s license and criticized the prolonged lack of electricity in certain settlements, calling it a “great disgrace” in modern times. However, he maintained a positive outlook for the global economy in 2025, expecting it to perform well despite Bulgaria’s domestic challenges. (Novinite)