Bulgaria seems ready to pay for its own misery with the long standing in the backyard of the EU.
Just a week ago, the “triumphant” visit of Bulgarian Prime Minister Boyko Borisov ended in Berlin. What were the real results of this visit? Well, to none. Chancellor Angela Merkel has not pledged to reduce project co-financing from 20% to 5%, which is of major importance for the Bulgarian economy. This opens up the possibility of freeing up financial resources for other sectors such as education and healthcare. Merkel tactfully dismissed the topic of our Schengen admission as well.
Instead of urging and asking for specific commitments, the PM generously pledged the bankrupt BDZ to pay a loan of BGN 10 million to the German trains Siemens, under which the German government is the guarantor. In other words – we again put our knees in front of Merkel
The opportunity to blaspheme once again the “incompetence” of the previous government and to point out the “guilt” for the loan was not missed. According to Borisov, the budget surplus should have been invested in paying the wagons instead of taking out a loan that his cabinet is now “forced” to repay. Obviously, this comment is devoid of any knowledge of the elementary economic life and principles of public investment management, which, like private investment, are financed mainly by attracted capital in the context of a still developing economy.
It is also clear that the German Chancellor, who is currently literally pulling the reins of Europe, is making a good impression with the demonstrable act of hard work. But
whether this would turn the course of German policy in a favorable direction for us Rather not. Germany continues to be insensitive to the debt-ridden southern European Union (EU) member states.
Most analysts point to this insensitivity as the main reason for the criminal downgrade of the credit rating of the 9 EU countries, including France. The actions of Standard & Poor’s are seen as political rather than economic assessments specifically aimed at imposing German rules on strict budgetary discipline. For most economic analysts, it is already clear that this mechanism alone will neither rescue the debt-ridden countries from bankruptcy nor provide the necessary security for the future of the euro area. Even Merkel himself is aware that the country’s credit rating downgrade on Friday, January 13, is pointing to Germany’s excessive and unjustified financial rigor and the imposition of rules on budgetary discipline without specific commitments to provide the necessary financial assistance to indebted countries. However, Merkel’s policy is dominated by German voters who do not want to pay foreign debts. It turns out that the whole of Europe is a hostage to German voters.
In practice, Germany has the opportunity to assist and assist in the survival of the so-called. PIGS (Portugal, Italy, Greece and Spain) and literally hamper the collapse of the euro to put an end to the financial crisis on the Old Continent. The United Kingdom, which once again abstained on the proposed reforms and the Stability Pact and backed everyone with a veto last December, also supported this fact.
This “luxury” cannot be afforded by European budget dependent southern countries. However, whether their support will last long and
where is the border of European patience While the German economy remains stable and still strong with GDP growth of 3% and a reduction in unemployment to 6.8% in 2011, the EU average GDP has fallen by 0.3-0.4% over the same period. Non-euro area countries are also in recession. Sweden, which had more economic growth than Germany in 2010, is now in recession. The current account deficits of Poland and Turkey are also large.
The biggest threat to Europe’s economy is undoubtedly Greece. In 2012, the country’s GDP is expected to decline for the fourth year in a row by another 3 percent. The country has seen a dramatic increase in crime and the number of homeless people. According to recent statistics, one in five Greeks live below the poverty line. As a result of the government’s efforts to curb spending and raise taxes, people are barely surviving, and there is no real improvement in the country’s economic environment. Since 2008, GDP has fallen by a total of 12.5% and unemployment has reached 19% with a total of 470,000 new unemployed. Even middle-class Greeks are already trapped in poverty.
The most affected are small and medium-sized enterprises, which represent 99% of existing businesses and employ ¾ of private sector employees. Youth unemployment has reached a record 47%.
Yulia Dobreva is a Doctor of Political Economy and Master of Business Administration from Sofia University “St. Kliment Ohridski”.