EKIP– Expert Club for Economics and Politics A Different Opinion
The activity of the experts from the EQUIP continues in June with participation in media discussions related to reforms in the pension system and healthcare, the proposal to reduce VAT, entry into ERM II, legalization of marijuana and others.
The topic that most excited the public during the month was the proposal of the DRF to reduce the VAT rate for medicines and essential products. Stoyan Panchev participated in the show "The Day with Georgi Lyubenov" on BNT and opposed the statement of the economist Emil Harsev that instead of reducing, there is a need to increase taxes. On the contrary, according to Panchev, it is high time to talk about reducing taxes, but reducing VAT is not the best choice.
The chairman of the Bulgarian Libertarian Society also expressed his skepticism about Bulgaria's entry into the eurozone in an interview with "Horizon for You" on Bulgarian National Radio. Unlike his interlocutor and former Deputy Prime Minister, Nikolay Vassilev, according to Panchev, if we enter the eurozone we will lose our fiscal stability, which we maintain thanks to the currency board. He also expressed doubts about the future of the monetary union, especially in the event of a possible economic crisis.
On Bulgaria On Air, Panchev discussed the political changes in our southern neighbor Greece and Bulgaria's admission to ERM II. More on the topic of the Euro can be found in Stoyan Panchev's article for the newspaper 168 Chasa " Euro and Currency Board - Comparison of Results ".
Our health economist Arkadi Sharkov presented his opinion on the health reform, the problems of hospital care and explained what the possible solutions are in the program "Sunday 150" BNR. "Something that is missing in healthcare is a consistent policy - to follow a single strategy by all ministers. Healthcare is not a political sector. The moment it is politicized, these disproportions in the system arise," said Sharkov. In his appearance on Europe TV, Sharkov commented on the proposal to reduce VAT on medicines and what the consequences would be for Bulgaria's fiscal policy.
EKIP Editor-in-Chief Georgi Vuldjev explained on TV Europe the statistics on the decrease in unemployment in Bulgaria and the increase in wages in the first quarter. Although these data are positive, according to him, they should be viewed carefully because they are lagging indicators and therefore cannot indicate whether a recession or an economic upswing is coming.
Speaking to bTV Novinite, Vuldjev commented on the increase in the ceiling and the size of pensions. According to him, the pension ceiling is still necessary to maintain the financial stability of the pension system. He noted that the government is aware of the critical financial situation of the system, but criticized it for trying to patch up the situation by increasing insurance contributions and partial changes to the pension formula instead of carrying out the necessary reform.
In the morning block of BNT, Stoyan Panchev and Mika Zaikova also discussed the pension changes. They again emphasized that the pension system is in a permanent deficit, the revenues cover half of the expenses, which means that in practice the pension system is bankrupt. Later in the month, Stoyan Panchev shared his views on the future of the UK after Brexit and whether a trade deal between it and the US is possible.
Dimitar Karagegov defended the cause of legalizing marijuana on "THE DAY with Vesselin Dremdzhiev" on TV+. According to him, our country is significantly lagging behind in legalization compared to other European countries, where it has long been a hot topic. The bans not only do not help to limit use, on the contrary, more and more young Bulgarians are using prohibited substances. In front of the Bulgarian National Radio, the founder of Liberty420 warned about the dangers of synthetic marijuana substitutes, which are up to 100 times stronger than it, with severe unwanted effects.
