EKIP– Expert Club for Economics and Politics A Different Opinion
Yesterday, Sunday, June 29, we were reassured by our politicians that the crisis was over. Even that "there is no crisis."
"Political parties and institutions have declared their determination and readiness to provide the necessary resources and implement all necessary measures to guarantee banking stability in the country," President Plevneliev said decisively.
Many other good things were said, including that:
"There is no banking crisis, there is a crisis of confidence and there is a criminal attack.",
in connection with which:
"Urgent action is needed to identify and punish the perpetrators and instigators of this malicious phenomenon."
Well, hopefully, but...
It was not said only... HOW MUCH. How much and where the funds "to guarantee banking stability in the country" will be provided.
On Monday, we learned it thanks to the European Commission: 3.3 billion leva from Bulgarian taxpayers will be provided by our state to Bulgarian banks as a reaction to "speculative attacks" from last week.
3.3 billion leva is the amount that the government, with the support of all politicians, will use as it sees fit to solve some "speculative" problem with some banks and the drama with people's fears. A drama that was obvious to even a blind man that was being played out by the political elite, and that in conditions of complete financial and fiscal stability in the country in the absence of fundamental reasons for a crisis in our banking system.
The "rescue" through 3.3 billion leva of Bulgarian taxpayers will be administered by the same government that, through its actions or inaction, allowed, if not caused, this drama for the Bulgarians.
Let's just call the government "government" instead of "power" - otherwise we flatter them and encourage them to assume a position that the constitution and the principles of democracy do not give them. "All state power stems from the people" is written in Article 1. Article 2 of the Constitution of the Republic of Bulgaria. In other words, if anyone is deceived today - the power, the people, was deceived. By whom? By our representatives in the "bodies provided for in this Constitution"...
Some are suggesting, I hope out of incompetence, that the EC is almost "pouring" 3.3 billion leva into us to "fix" us. The EC is not "pouring" anything into us, it is only telling us that it will not consider the use of these funds of Bulgarian taxpayers as state aid for troubled enterprises - in this case banks - incompatible with EU regulations.
This money is ours - the taxpayers' - it does not belong to the "state", and even less to those whom someone is accustomed to calling "the authorities". The government can only administer this money, which we have earned with our labor and, through the payment of taxes, fees, excise duties and social security contributions, have provided to the government for its disposal within the framework of the State Budget Law adopted by the National Assembly.
The government and politicians owe us accountability and transparency for every lev of our money, which they have the responsibility, not the privilege, to manage! Yesterday, they did not provide it to us.
Today, thanks to our membership in the EU, the curtain is timidly beginning to lift amidst the dust of media noise that obscures and blurs the real picture.
June 30, 2014
*The author is a former Deputy Minister of Finance, Chairman of the Supervisory Board of the Bulgarian Development Bank (Encouragement Bank) 2004 - 2006, and Deputy Managing Director of the International Monetary Fund for Bulgaria 2004 - 2005.
