Sergei Vasilenkov
Pravda.Ru
Modern Bulgaria is going through tough
times. The economy is stagnant, living standards are going down, and
young people are leaving the country to find work and earn a decent
wage. This is coupled with a political crisis that does not allow the
country to develop in the right direction. Will the Bulgarians solve
their problems?
In March of this year, the Bulgarian government has resigned. Prime Minister Boyko Borisov resigned after mass rallies in Sofia. What made peaceful Bulgarians take to the streets and join the strikes ongoing to this day? The reasons are trivial. Small wages, constant price increases and high level of unemployment. When the Greeks declared bankruptcy, the Bulgarians did not have an emotional reaction.
In March of this year, the Bulgarian government has resigned. Prime Minister Boyko Borisov resigned after mass rallies in Sofia. What made peaceful Bulgarians take to the streets and join the strikes ongoing to this day? The reasons are trivial. Small wages, constant price increases and high level of unemployment. When the Greeks declared bankruptcy, the Bulgarians did not have an emotional reaction.
Bulgaria is a poor European country
whose citizens are accustomed to survival. Bulgarians love their
beautiful country and its national holidays. However, constant increases
in food and energy prices are pushing people's limits. Bulgaria is
still heated with wood. Central heating system exists only in major
cities and only in specific areas. Apartments are heated with electric
appliances, and villagers use stoves to heat their homes. A warm house
in Bulgaria is considered a luxury that not everyone can afford.
There are barely any local products in
stores, everything is imported. Meat comes from Germany, tomatoes from
Turkey and Greece, garlic from China, potatoes from the Czech Republic.
This happens in the country with the annual average of 320 days of
sunshine and fertile soil. Bulgarian authorities consider local
production unprofitable.
Many Bulgarians yearn for the days when
the Soviet Union supplied oil and gas to Bulgaria, buying nearly all
agricultural and many industrial products that were the republic's
specialty. Then, Bulgaria lived well. People were paid stable wages, and
tourism flourished.
Many Bulgarians used to be able to afford their own property. Land and real estate in Bulgaria were less costly than in other coastal countries. But the global crisis has changed the situation. Now the real estate business is almost non-existent, and there is no new construction. Factories and plants are either in disrepair or were sold to foreign companies for negligibly low prices. For example, Balkan Steel Plant was sold for a symbolic one dollar.
Many Bulgarians used to be able to afford their own property. Land and real estate in Bulgaria were less costly than in other coastal countries. But the global crisis has changed the situation. Now the real estate business is almost non-existent, and there is no new construction. Factories and plants are either in disrepair or were sold to foreign companies for negligibly low prices. For example, Balkan Steel Plant was sold for a symbolic one dollar.
All this made people take to the
streets. It started with small towns, but later the protests began
gaining momentum. The country's authorities expected the rallies to have
no consequences. Boyko Borisov was not interested in the opinion of the
people as he was mostly concerned with Brussels' opinion.
Gradually the slogans of the protesters
changed. At first, people just wanted to get lower prices for
electricity. Soon, however, the protesters demanded resignation of the
government, as well as the change of the political system. Increasingly
more people joined the protests. However, the resignation of the
government did not solve the basic problems. The West is anxiously
watching the situation in Bulgaria.
When Romanians and Bulgarians were granted the official right to work in Western Europe, the European governments and people were horrified. Many Bulgarians rushed to other countries in search of a better life. This trend has become so widespread that, for instance, the Bulgarian health care system today lacks qualified specialists as they all have left to look for work in Western Europe.
When Romanians and Bulgarians were granted the official right to work in Western Europe, the European governments and people were horrified. Many Bulgarians rushed to other countries in search of a better life. This trend has become so widespread that, for instance, the Bulgarian health care system today lacks qualified specialists as they all have left to look for work in Western Europe.
The West is not thriving these days
either, rather surviving the reduced wages, rising unemployment, and
growing prices. For the Bulgarians this is better than nothing as the
situation in Bulgaria is even worse. After Delian Peevski was appointed
the head of the State National Security Service, thousands of
anti-government rallies erupted in the country. 5,000 people gathered in
Sofia to protest against the government. The protesters' posters read:
"The people are not going to negotiate," "The new electoral law", "Mafia
to jail." There are traditional slogans about "resignation" and
"mafia". The rallies are peaceful and the protesters do not conflict
with the police.
President Rosen Plevneliev invited
representatives of the parliamentary parties to discuss the best ways of
getting out of the political crisis. "My position is clear. I do not
trust the government, but that does not mean I'm not willing to
cooperate with it under my constitutional authority," said the
president.
Economics and politics are two
communicating vessels. Troubles in one sector automatically affect the
other. The crisis in Bulgaria is of political nature, but the economic
sector is in real danger. Until there is a new working government, the
administration will work on autopilot.
Interim Government will not have the
political support, and many of the ongoing projects will be frozen. Some
analysts have expressed concerns about populist actions that may
significantly affect the financial health of the country.
The Bulgarian economy faces serious risks, especially in terms of unreasonable costs. This may increase the debt and reduce the fiscal reserve, raise the interest rates on loans and lead to the loss of investors. Policy makers need to understand that by far the most important task is to maintain the financial stability of the state.
The Bulgarian economy faces serious risks, especially in terms of unreasonable costs. This may increase the debt and reduce the fiscal reserve, raise the interest rates on loans and lead to the loss of investors. Policy makers need to understand that by far the most important task is to maintain the financial stability of the state.
The question arises - is there a chance
that Bulgaria's economy will fall into weightlessness as a result of the
development of the political crisis in the country? Finance expert
Emile Hirs believes that this should not happen because each company has
its own management. The fact that the country is looking for a new form
of government does not mean that individual economic actors would
automatically inherit this feature. However, there is a risk because of
the diverse demands of the protesters. The vast majority of these
demands are not feasible.
Such important requirements as control
of municipal and state property, as well as improvements to the business
environment in the country are nonexistent. Some experts suggest taking
loans for the economic recovery. Others believe that the idea to borrow
money and then spend it on improvements of the situation in the country
is equal to masking it under the guise of stimulating the economy. You
can see what happened with Greece. Bulgaria would also have to pay for
these loans.
The policy makers have to sit down at the negotiating table to find a compromise and decide together how to get out of the difficult economic situation. If the political crisis persists, Bulgaria may be on the verge of a default. So far, things are moving along the classical revolutionary scheme. The political demands have replaced the economic ones, the authorities burdened by corruption and suspicions proved unable to cope with the crisis, and the people demonstrate reluctance to support government policies.
