Bulgaria Considering Long-Term Exit from Eurozone by 2029, Says Former Finance Minister
Bulgaria could be permanently distancing itself from the Eurozone, according to a warning from former Finance Minister Simeon Dyankov in an interview with BNR.
"We are looking at least two more years ahead, potentially even to 2029," Dyankov stated, hinting at "two unsuccessful attempts" by Bulgaria to enter significant deficits.
The minister criticized the current approach, labeling it "reckless" to propose increased spending with no corresponding revenue. He advised, "Don’t start spending now without a plan for income to match it. Parliamentarians won’t fall for this."
Dyankov insisted that external influence was behind such proposals, suggesting that competent financial experts wouldn’t suggest such strategies. He highlighted that Bulgaria’s Finance Ministry has seasoned experts who understand how to draft a budget, and the 2025 budget proposal, with a projected 15 billion lev deficit instead of the required 6 billion for a 3% deficit, was unprecedented.
The former minister stressed that the current caretaker government should immediately withdraw the 2025 budget proposal from parliament, as it shows an 8% deficit that is unacceptable to Brussels and the ECB.
Dyankov also lambasted the proposed tax breaks for those who had not paid taxes in the past and the artificial inflation of VAT revenue. He predicted inevitable protests against such policies.
Despite recent political turmoil, Dyankov saw an increased likelihood of a quadripartite coalition between GERB-SDS, Demps, ITN, and BSP due to the caretaker government’s errors. He remained optimistic, predicting that Bulgaria would have a regular cabinet in place by early February.
Notably, Dyankov acknowledged a significant drop in foreign investments and foresaw potential issues, including the possible revocation of "Europahold’s" license. He described power outages that occurred across Bulgarian cities for a week as "a major scandal in the 21st century."
In closing, the former finance minister maintained a positive outlook for global economic prospects in 2025.
