23.07.2012

Bulgaria does not support tax harmonization in the EU. This is what Deputy Prime Minister and Minister of Finance Simeon Djankov says for Financial Times Deutschland. He specifies that "Bulgaria needs a strong growth to catch up with the other states". The single tax base for companies may be put to discussion but the advocates of this idea want harmonization of tax rates as well. If this is the plan, Bulgaria will remain outside the euro area for a long time now. Simeon Djankov adds that "growth is important to us; we want to improve our standard of living. For Bulgaria is anyhow indirectly part of the euro area, since its currency is pegged to the euro". The Finance Minister also says that Bulgaria would not accept the introduction of euro bonds by explaining that "we want to know how these rules would look like and whether they are to our advantage or they are mostly to the benefit of the most indebted countries".

Mr. Djankov also comments on the budget data for the first half of the year. For Financial Times Deutschland he forecasts that due to the small budget surplus registered in the first 6 months of 2012, the 2012 deficit would be 0.5 per cent. He adds that according to this indicator we are at the same level with Germany, and the country's indebtedness is just 15%, being lowest in the EU after Estonia. In addition to that, Bulgaria has an inflation rate that matches the Maastricht criteria, but has decided to bide its time.

You can read the whole interview here.