Reformist bloc - an alliance that libertarians can do without*

The formation of the so-called Reformist Bloc (RB) was announced back in May, but it presented its views on Bulgaria's economy only in early October. It is difficult to say that the ideas of the new political union are an alternative to the status quo, because they generally preserve the size of the state and in some aspects even increase its interference.

For an alliance that claims to uphold a so-called right-wing understanding of economics, the Reformist Bloc focuses too much on the state. The right in the political spectrum defends free market relations - production, work and exchange, managed and coordinated by the decisions of individuals or voluntary associations between them. In this context (at least in the general case), the right believes that state intervention is harmful and should preferably be limited.

The Reformist Bloc's proposals place it on the far left of the right. That part where the right is so far from you that you are closer to Hollande than to Reagan. The RB does not disappoint and with its program reinforces the principle that the word reform in political language is used as a veil under which the next technocrat-socialists can impose their views on the economy.

Almost every one of the RB's ideas represents some attempt to introduce effective state intervention in the economy - a desperate intention that only leads to the growth of political control. RB claims that it will reduce the administrative burden by introducing a new regulatory law with a very controversial expected effect. It proposes a new law that should somehow rid public procurement of corruption. It will increase the legal privileges of workers at the expense of employers; of consumers at the expense of manufacturers; of borrowers at the expense of banks. It will increase the power of the antimonopoly commission, but will preserve the price monopoly of the State Energy Regulatory Commission in the energy sector - a small part of the program.

It cannot be denied that there are some proposals that are in the right direction, but even if they are implemented, their effect will be extremely insignificant. One is for greater choice for the insured in what to invest in and how to manage their funds collected under the so-called II and III pension pillars. But this is of almost no importance as long as there is mandatory pension insurance, which involuntarily disposes of a significant part of the income of workers, allowing it to function in the absence of real market competition.

Another idea proposes introducing a tax-free minimum for people with low incomes. The idea is good (from both a moral and economic perspective), but it must be accompanied by a reduction in state spending. Otherwise, the measure will simply be political vote-buying.

After a long wait, the Reformist Bloc has finally acquired a profile beyond the romantic expectations of the fragmented right in Bulgaria. However, it is difficult to say that it will now appeal more to pro-market voters. On the contrary, true libertarians will have their hair turn white at the very beginning of the program - reading the "threat" of the RB to increase statehood. And the rest of the right will probably frown at the possibility that the RB's policy will lead to the abolition of the flat tax, which is important to them.

* A play on the subtitle of the Reformist Bloc's program - "Measures we cannot do without"

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