Bulgarian Economist: We Need the Eurozone as Much as a Brain Tumor

Associate Professor Grigor Sariyski from the Institute for Economic Research at the Bulgarian Academy of Sciences (BAS) voiced doubts about the feasibility of the 3% deficit target outlined in Bulgaria's Budget 2025. In an interview with the Bulgarian National Radio (BNR), he raised concerns regarding the country's fiscal health and its prospects for joining the Eurozone.

Sariyski highlighted the forecasts presented by Acting Finance Minister Lyudmila Petkova, which predict a significant rise in fiscal expenditures of around 18 billion leva, while revenue growth is estimated at only 6 billion leva. This disparity suggests a budget deficit increase of nearly 12 billion leva. Sariyski noted that if this trend continues, the deficit could reach as high as 8.5% or even 9%, depending on the accuracy of the GDP forecast, which he also questioned.

The economist warned about the potential consequences of political instability on fiscal policy. He suggested that if the next parliament is highly fragmented, with multiple parties represented, fiscal policy might be used as a tool in election campaigns. He speculated that this could lead to the government being short-lived, which may result in elections as early as Easter.

Expressing skepticism about Bulgaria's prospects of joining the Eurozone, Sariyski described the goal as unrealistic. He metaphorically stated that the country needs the Eurozone "as much as a brain tumor," emphasizing his critical stance on the issue.