site.btaInstitute for Market Economics Says Judiciary's Budget Can Solve Problems in Justice

Ivan Bregov, Chief Expert at the Institute for Market Economics (IME), Wednesday said the problems in justice can be solved through the judiciary's budget. He said that through that budget, the unlimited power of the Prosecutor General can be eroded and the caseload problem in the system can be resolved.

IME presented the third part of its 2024 White Paper. The White Paper looks at the direction Bulgaria could take after the October 27 parliamentary elections, with chapters on fiscal policy, demography and the human capital, the rule of law, investments, competitiveness and economic growth. The presentation was attended by politicians, financial experts, businesspeople and public figures.

Bregov commented that the procedures for the election of a Supreme Administrative Court President and of a Prosecutor General, as well as of members of the regulators, were based on "misplaced faith in a democratic procedure which solves problems". In Bulgaria, instead of solving problems, this democratic procedure engenders problems by increasing the cost to society, he said.

The legal expert said the quick adoption of amendments to the Judicial System Act could solve many problems and even stop the election of a prosecutor general.

IME Senior Research Fellow Petar Ganev said the White Paper had not been put together yet and the option of handing out to the MPs was still being discussed.

The big goal of the future government should be to enrich the country by reaching 75-90% of the EU average per capita GDP. Bulgaria is now at 64%, and 75-90% is a feasible target for the next four years. "We have already seen this in many countries of Eastern Europe," Ganev said.

IME Chief Economist Latchezar Bogdanov said nations become richer because people become more productive, which happens because they are more educated and armed with new technology and capital. This is what investment is about.

In Bulgaria, average investment is 18% of GDP, while the regional average is over 22%. The countries which are catching up fastest with the EU average invest 26-27% of GDP a year. If Bulgaria is to become richer, it needs to invest BGN 8 billion more every year. This calls for a change in the public investment programme, which has huge resources, as well as in private investment, Bogdanov added.

The measures to improve the economy are very often related to security, good infrastructure, a functioning judiciary and police force, and good education. "That is why we often discuss issues other than the economy," he said.

Petar Ganev expects a deficit of up to 3% of GDP in the draft budget. When budget expenditures exceed 40% of GDP, it takes five or six years to shrink the deficit, Latchezar Bogdanov said.