site.btaFinance Minister: Bulgarian Economy Needs Strong Boost to Capital Investment in Tangible Assets

The Bulgarian economy needs a strong boost to capital investment in tangible assets if it is to increase its productivity, Finance Minister Assen Vassilev said at the opening of the round table "Public-Private Partnership in Bulgaria". The event was organized in Sofia by the Delphi Economic Forum.

He pointed out that private capital investment has lagged behind public investment in the last 6-7 years. Vassilev recalled that the state provides the maximum support to the private sector allowed under EU rules, adding that Public-Private Partnership (PPP) could be another instrument to boost capital spending.

For this cooperation to be meaningful, however, the Finance Minister expressed belief that there must be an overall match of public and private interests. This, he said, is the essence of an effective PPP. Lack of balance risks mistakes in the process, regardless of the competence of the administration, the quality of legislation and the sustainability of the cabinet's policy, he replied to a question by the moderator of the discussion Atlantic Club of Bulgaria Vice President Elena Poptodorova.

In order to explain his words about achieving a balance between public and private interests, Vassilev used the following example: “if the funds are granted upon presentation of a business plan, in this case one interest prevails over the other. But if the funding is granted on the condition that the steps in the business plan are achieved, then the two interests are equal".