Cause and Effect in European Politics and Law

GERB insists on urgent reform of the budget

Adelina Marini, May 12, 2009

The economic team of the political party GERB (Citizens for the European Development of Bulgaria) has updated its economic programme because of the constant decrease of the monetary reserve of the country. The team is worried that the government has spent 25 % more in comparison to the same period of last year. The data is based on the latest statistical information and on the bulletins of the Bulgarian central bank. The latest data is from the 8th of May. The economic expert of GERB, Iliana Ivanova, told euinside that the party is also worried that if urgent measures are not immediately taken, there wouldn't; be money for salaries and pensions.

As a leading the opinion polls political force, GERB has all chances to have a majority in the next government and that is why it is very important to know what their solutions are so as to avoid a greater crisis in the end of 2009. Asked what will GERB do if it finds the exchequer empty, Iliana Ivanova explained that there's decision a series of unpopular measures and reforms to be undertaken because these reforms have been postponed for years. The inefficient expenditures will also be cut because it is not normal, Ivanova said, to increase the anti-crisis buffer at the expense of the healthcare and education. GERB also insists on a precise analysis and strategy about the inefficient expenditures. She added that there is enough reserve, especially in the expenditures for construction and infrastructure.

Like the Blue coalition, GERB also considers as unwise for the government to undertake long term engagements. Asked whether GERB is worried that unpopular measures and reforms might evoke decrease of support for the party, Iliana Ivanova said that GERB has already started to explain its ideas to the citizens and the business representatives and they generally support them.

Asked whether GERB will ask the IMF for a loan, Ivanova said that GERB considers a stand-by agreement with the IMF which could be used when necessary. Beside this other instruments will also be considered like the World Bank, EIB, European Commission and EBRD so that the best option is chosen.