"There is no scandal. It is clear that Bulgaria is helping Ukraine where it can." With these words, Deputy Prime Minister Atanas Pekanov commented on the Kyiv declaration and our country's position on the war in an interview in the studio of "The Day Begins with Georgi Lyubenov". He emphasized that with a "stripped-down budget" and a "huge deficit," there is no financial possibility to provide additional support this year, and "military aid has also been exhausted."
According to him, the big question is not just how much and what we provide to Ukraine, but that "we need to think more about peace and diplomacy" – and that is the official position of the Bulgarian state. Pekanov rejected suggestions that Bulgaria is isolated because of the war and insisted that our country has a voice in the European Union that it must use and defend.
"A position, despite the hysteria we hear in the media, in the end, 45% of the people who voted for the president – Prime Minister Radev, more or less share this position," he pointed out. According to him, Radev's approach – "that we should be balanced, that we should help and rather seek a de-escalation of this conflict" – has been known for years, and "obviously the majority of Bulgarians have agreed with this in order to trust him."
Pekanov also recalled the debate on European sanctions against Russia: "There were many questions – oh no, now we will block the sanctions – no, we said what we think, it was reflected, other countries heard us, and these sanctions would not have turned the war around. It is unlikely that sanctioning the Patriarch would have led Putin to rethink what he is doing. Ultimately, it would have only heated up the situation even more on religious lines. And in that sense, our opinion prevailed. There is nothing wrong with even imposing a veto."
The Deputy Prime Minister also commented on concerns about price increases following the introduction of the euro. "In my opinion, the fears about price increases have been partially justified. It turned out that the more skeptical reading was more correct. Partly because of speculators," Pekanov said. He cited tourism as an example: "We saw what is happening in tourism. Restaurants chose the worst possible scenario. When you align prices with Western Europe, you can hardly expect the same flow of tourists. If a tarator costs 9 euros, that will not lead us anywhere."
He was categorical that the government has no intention of negotiating a new reduction in VAT for restaurateurs: "We will not negotiate VAT percentages. That is not our policy. Administrative reform and better revenue collection are more important."
Regarding European funds under the Recovery and Resilience Plan, Pekanov warned that time is critical: "45 days remain. There is full mobilization in all ministries. The final deadline is European and cannot be extended. Everything that is completed by August 31 will be accounted for. What is not – there is no way it can be funded."
He made a direct appeal to the project contractors: "I ask for work around the clock. Do not wait for the ministers, do not call me early in the morning and late at night, do not write me SMS messages in capital letters, and do not call my relatives. I cannot extend European deadlines." According to him, a number of projects have been completed in recent weeks – new schools, kindergartens, medical equipment, the eighth medical helicopter, and new trains, but delays in industrial zones, building renovations, and other projects remain a serious challenge.
Pekanov also touched on energy reform, assuring that it will not lead to the immediate shutdown of coal capacities: "In the short term, there will be no closing of coal plants. They must be preserved as a cold reserve but operate on a market basis. They cannot accumulate about 100 million leva in losses every year, which are paid by Bulgarian taxpayers." He clarified that if the reforms are not implemented, Bulgaria risks losing about "437 million euros" under the Recovery Plan.
According to him, the current state of public finances is "difficult," but all necessary reforms cannot be implemented in four months: "This budget shows the true picture in the country. The next budget will be different – there will be administrative reforms, optimizations, closure of agencies, and measures to bring the economy into the light. There is no way for the current trajectory to continue."
Speaking about the future of the economy, Atanas Pekanov outlined the goal that he believes we should follow: "Our goal should be for Bulgaria to have more champions – companies that are competitive on a global scale. We have such in the space sector, in artificial intelligence, in the defense industry. That is precisely where we should look for our future."