Cause and Effect in European Politics and Law

Stanishev: the crisis is not the result of wrong policy

Adelina Marini, May 19, 2009

The economic crisis, which has been felt fully in Bulgaria now, is not the result of wrong economic or financial policy, claims the prime minister Sergey Stanishev. In the second part of his interview for the "Standart" daily the prime minister says that indeed the good financial-economic policy for the last 4 years has given "Bulgaria the chance to be the most attractive countries for investments. We have 6 % annual growth, 20 bn euro investments has been attracted. Compare this period to the beginning of the 90-ies and the period 2005-2009. We have attracted more investments for 4 years. With such policy we appeared to be much better prepared and financially protected in the crisis".

The prime minister, again, blamed directly the EU partners of Bulgaria because, as he puts it, the crisis in Bulgaria is being generated by them. Another, again foreign, reason for the economic situation in Bulgaria was the gas crisis which caused real harm to Bulgarian industry. But Stanishev didn't mention, nor he was asked, why for the last 4 years Bulgaria has not invested even 1 lev in at least minimal security against gas shortages as it happened in the beginning of the year. He didn't explain why it was after the crisis when the government started serious negotiations with Romania and Greece for the construction of interconnections which could help Bulgaria with gas in cases of crisis, neither he said why the gas deposit "Chiren" hasn't been extended or a new one created. It was also not clear from the interview why Bulgaria hasn't so far requested money from the EU, if the lack of it was the reason, to finish all these projects much earlier because such measures could have protected Bulgarian economy from the gas crisis.

The prime minister in harsh contrast top the rightist parties and the data of the national statistics showing the Bulgaria is already in recession, says that the crisis is beginning to go away: "It is still early to say but the impression I get is for movement in the second quarter in comparison to the first. Metaphorically speaking the first shock of the fact that the crisis has come, is over. Because the crisis is a psychological condition".

The prime minister also says that very appropriate anti crisis measures are the construction of industrial zones and investments in construction.