site.btaPrime Minister Radev Explains Deficit with Past Policies

Speaking to reporters before the EU-Western Balkans Summit here on Friday, Prime Minster Rumen Radev said that the causes of the current deficit lie in past policies. He expressed hope the parliamentary parties will show maturity and a constructive spirit, so that the deficit can be reduced through joint efforts.

The Prime Minister stated: "First, we need to conduct a one-time assessment of all previous administrations that sought to maintain a 3% deficit through various contortions. Through selective decapitalization of state-owned companies, siphoning liquidity from the business sector, delaying VAT payments, and collecting taxes in advance that are then carried over to the current year."

Radev said that there are significant discrepancies in the deficit data. He stated that the differences between the deficit figures in Brussels and Sofia are due to incorrect data provided by the previous government.

Radev referred to the existence of hidden costs that are driving up the actual deficit and added: "Over the past few years, we have had deferred payments that are carried over to the following year. These are the so-called hidden costs that are inflating the hidden deficit. Invoices for work performed in previous years that have not been paid are now surfacing. This amounts to over EUR 2.2 billion, and these costs still need to be covered."

Commenting on the case with the former head of the Bulgarian Development Bank, Stoyan Mavrodiev, who was detained in Serbia, and the possibility of a delay in his extradition, Radev said that there is a risk of a repeat of the situation involving the ten-year wait for the extradition of the former head of the Corporate Commercial Bank, Tzvetan Vassilev, who is still in Serbia. Radev added: "That is why I spoke with Serbian President Aleksandar Vucic last night. I have received assurances from President Vucic that the Serbian government will treat our extradition request with the utmost responsibility."