17.01.2013

"This year will be a better one due to one fundamental cause, i.e. the euro area will for the first time not be the key risky factor in the entire world". This is what Deputy Prime Minister and Minister of Finance Simeon Djankov tells Capital Daily. According to him, the decision for a single banking supervisor, the entry into force of the fiscal compact and the European Financial Stabilisation Mechanism give enough reasons to consider that 2013 will be uneventful from euro area point of view. "Not all problems have been solved but we know what the solutions are and we have been working to have them", highlights the Minister. Asked when people and SMEs will feel the economic growth, Mr. Djankov says: "The financial sector always follows closely the macro- and financial stability of the entire bloc; only after that it starts setting its resources in motion. One of the reasons for a delay in this process is the accumulation of huge resources in the form of bank deposits which are not used and are kept as over-liquidity. This is noticed in Bulgaria, as well as in many other states. The other reason is the wait-and-see policy to decide which sectors will be promising, which is particularly valid for Eastern European economies where there were lagging-behind sectors before the outburst of the crisis".

In the framework of overall financial and economic policies the Finance Minister says that he is ambitious to continue effecting reforms by the end of his term of office, thus differing from former governments. Part of this intention is the ready Tax Investigation Bill. From the point of view of tax legislation Mr. Djankov does not expect any other changes except for the golden VAT standard. The Minister says that he has been having meetings with business associations and expects their proposals for improvement of the economic environment, some of which are to be implemented after being discussed with the relevant line ministers. "The idea is to show that good reforms can be effected even in a year of elections", adds Minister Djankov.