site.btaMihail Mikov: GDP Growth Projection of 0.8%Points to Government's Uncertainty aboutEconomic Development

Mihail Mikov: GDP Growth Projection of 0.8% Points to Government's Uncertainty about Economic Development


Sofia, December 22 (BTA) - Meeting with the Unity Club, Mihail
Mikov, leader of the Bulgarian Socialist Party (BSP), said that
the projection for 0.8 per cent GDP growth in 2015 shows that
the government is uncertain about the prospects for economic
development, the BSP's press office said.

The meeting was attended by diplomats, party activists,
representatives of public organizations and sympathizers.

The adopted national budget and the government's policy suggest
a return to the course of Boyko Borissov's first cabinet, marked
by right-wing policy channelling the State's financial
resources to big business and major infrastructure projects
without making an effort to boost consumption, said Mikov.

In this situation, the government has projected minimal GDP
growth of 0.8 per cent, although the second and third quarters
of 2014 saw growth of 1.6 per cent. Mikov said that according to
some analysts, this is done in order to ensure overperformance
and spend the surplus.

Commenting on the government coalition, Mikov said the only
thing that held it together was its participation in governance.
Mikov said there were signs that the government coalition was
seeking support from the Movement for Rights and Freedoms, which
backed GERB's proposal for reform of supplementary compulsory
retirement insurance. He commented that the aim was to use money
from the second pillar fully-funded system to offset the
long-term deficit of the National Social Security Institute.

Mikov also analysed what he said was a radical change in
relations between Europe and Russia, which have an impact on the
region and the world as a whole. This will force Russia to
orientate its political and economic relations to the East. In
his view, developments in Ukraine will have a negative impact on
both Europe and Russia in the long term, and Bulgaria will be
hit worst.

He described Russia's decision to drop the South Stream gas
pipeline project as a major loss for Bulgaria. He warned that
the Pan-European railway and road corridors might also bypass
this country.