2024-04-24 13:43:54
The changed economic conditions and state of the EU and the Eurozone make it necessary to update the conditions for Bulgaria’s accession to the Eurozone and the introduction of the Euro as the national currency. It is also necessary to conclude that without a long-term national vision with concrete policies for all sectors, our entry into the Eurozone loses part of its priority. Analysts report that economically we are not prepared for the transition to the euro, although we formally fulfill part of the conditions for acceptance. The draft Law on the introduction of the euro does not reflect all the implementation mechanisms, and a full impact assessment of its adoption is also missing.
This was said by the Chairman of the Strategic Institute for National Policies and Ideas, Dr. Kaloyan Pargov, during the Discussion Forum “Economy of the Euro – Development of Industries and Services and Promotion of Investments in the Conditions of the Transition to the Eurozone”, organized by SINPI.
Leading financiers and economists Prof. Garabed Minasyan, Prof. Boyan Durankev, Prof. Stoyan Prodanov, Levon Hampartsumyan, Lyubomir Datsov, Lyubomir Karimanski and Kuzman Iliev took part in the forum. Of the invited parliamentary parties, only the representatives of “Vazrazhdane” Deyan Nikolov and Dimo Drenchev took part in the event.
Prof. Minasyan presented a presentation on “Eurozone challenges and risks”, with which he started the discussion.
Pargov pointed out that the topic of the economic development of the country is a leading one for the experts of the Strategic Institute for National Policies and Ideas.
“Our detailed observations show that it is very important how Bulgaria will fit into the processes that will develop in Europe and the world from now on, as well as the topic of peaceful existence as a factor for economic prosperity and development”, he pointed out and added that a national consensus is needed on long-term national policies to guarantee a sustainable economic environment, because not inflation, but the lack of such sustainability, is the more serious problem related to the introduction of the euro.
Dr. Daniela Vezieva, who moderated the discussion, explained that the report of the Ministry of Finance said that the problems were not addressed, because it was assumed that we were unambiguously applying it.
According to the former Minister of Economy, this raises questions about how the transition to the euro will affect all Bulgarian citizens, will it deepen the already large regional imbalance in the country? How will it affect the business, will it be able to grow and be sustainable?
She believes that the texts in the law do not reflect completeness with regard to the conversion of shares and units, as well as do not reflect the real costs of the transition.
“There is talk of a one-time cost, which will be significant, but there is no comment on the calculation of all the costs of the transition. And at the moment there is a discrepancy between the sub-normative acts governing the fiscal policy, and with the draft of the law they are deepening. For example, how will the problem of reflecting the different VAT rate in one invoice be solved,” said Vezieva.
That is why the experts of SINPI are convinced that it is very important to make a full assessment of the impact of the Law on the introduction of the euro.
In conclusion, Kaloyan Pargov also focused on the development of the economy and the promotion of investments.
According to him, the general opinion is that there is no national policy for economic development. “Opportunities for market niches both in the EU and outside were commented on, where we could position ourselves as leaders in the production of organic agriculture, in the processing industry, in tourism and in the chemical industry. For this, there must be an overall vision for development, as well as encouraging measures on the part of the state. But we do not see a clear political responsibility on many of these priority issues,” said Pargov.
Therefore, SINPI considers that changes to the Investment Promotion Law are imperative.
The Strategic Institute for National Policies and Ideas is ready with specific proposals, namely:
To carry out a full impact assessment of the proposed measures and the screening mechanism in the Investment Promotion Act.
To carry out an analysis and risk assessment, regarding the legal impact of international agreements on the eligibility provisions of third country investments, in the screening mechanism.
To amend the eligibility of third country investors by not drawing up a definitive list of countries, but to apply a balanced approach to eligibility based on security criteria.
To include text governing the extension of pre-existing investments from third parties to treat both the eligibility assessment in the screening mechanism and not falling within the 10% limit.
To replace the term “high-tech” with “critical” technologies, thereby expanding the possibility of investments in high-tech industries that are not critical to the national security of the country.
“It is a matter of political will, foresight and responsibility that these changes become a fact, in order to give an impetus to the economic growth of Bulgaria”, the chairman of SINPI, Dr. Kaloyan Pargov, is convinced.