A month after the early elections in October, Bulgaria has a new coalition government, which includes GERB and the Reformist Bloc. The successful vote on the cabinet of 18 ministries came after the coalition partners managed to win the parliamentary support of the ABV and the Patriotic Front. Deprived of a majority in parliament, …
More »The CorpBank case and the unanswered questions
For more than a month, leading economists and bankers have been analyzing what is happening at CorpBank and, together with politicians, are looking for a solution to the crisis at the fourth largest bank in Bulgaria. Currently, experts are awaiting more complete information about the quality of the bank's assets, and politicians are on the verge of raising …
More »How to (not) vote. Elections to extend the transition
On Sunday, Bulgarians will have the unique opportunity to choose who will not reform the healthcare, pension and education systems; who will redistribute part of their wealth; who will support one or another monopoly and who will worsen the state of the economy. In other words – tomorrow Bulgarians will vote to preserve the status quo. …
More »Deflation in Bulgaria poses risks only for the energy sector
Today, the National Statistical Institute (NSI) published data on the level of the consumer price index in February, according to which deflation in Bulgaria deepened to 2.6% on an annual basis from 2.2% in January, reaching a seven-month high. Maria Ivanova from Capital commented on the data as follows: From an economic point of view, deflation is a problem, …
More »Green energy tax – part of the cycle of state intervention in the economy
Very soon we can expect green energy producers to join the wave of protests against the government. Earlier this week, the parliament's budget committee proposed that revenues from the sale of energy from renewable energy sources (RES) be taxed at a 20% fee. The idea of the fee is included in the draft …
More »Politicians or private individuals at the helm of the energy sector?
Nowadays, humanity has become accustomed to many conveniences that our ancestors could not take advantage of. The car, the television, the refrigerator, the dishwasher are just a small part of the goods that make our lives better. The standard we enjoy today is due to the more efficient modern methods of production that …
More »The fetish for tax neutrality, or how not to protect the market
At the end of August, the Association of Children's Goods Traders submitted a request to parliament to eliminate VAT on products for children up to 3 years of age - this article is a critique of the position of the Institute for Market Economics (IME) against the association's proposal.
More »Budget update: accumulating debt is saving
Today, the Bulgarian parliament approved the government's budget update proposal in first reading. The bill envisages an increase in the deficit from the current 1.3%/GDP to 2%/GDP and raising the ceiling for issuing new debt in the current year from 2 billion leva to 3 billion leva. It is clear to everyone that only …
More »The truth about the budget update
On Friday, parliament will discuss the government's budget update proposal at third reading. This comes after the president vetoed the legislative changes a week ago because, according to him, the proposed increase in state spending is opaque. But the main question we need to ask ourselves is - do we want …
More »Plan O: Keynesianism, Shurobaginism, a bloated welfare state
At the BSP plenum on Friday, Prime Minister Oresharski presented his action plan to his socialist colleagues. The Oresharski Plan - also known as "protest as much as you want, don't bother me" - contains the priorities of the "program government" of the ruling BSP-DPS coalition.
More »
EKIP– Expert Club for Economics and Politics A Different Opinion