Daniela Vezieva: It is time to stop the "accounting tricks" and make real reforms

Those in power claim the "treasury is empty," while the opposition denies it. Between these two extreme positions lies the entire Bulgarian economic reality – "billions of levs," "deficits," and "loans" that directly affect every Bulgarian. Former Minister of Economy and member of "SINPI" Daniela Vezieva believes that the new government is inheriting a "difficult fiscal and economic situation," regardless of the reported GDP growth.

"The truth is that the new government inherited a difficult situation, both fiscal and economic as a whole, regardless of the GDP growth – what happened in recent years with the deficits, which exceeded the Maastricht requirements, led to this situation. It is normal for the opposition to speak this way; that is their job." According to her, however, the focus on the deficit and the treasury cannot replace the lack of a "clear management program."

A budget without a program is not a solution

"We have all focused on the budget, but let us not forget that the budget is a function of programs. It is high time we saw a management program on the table to understand how we will develop, how we will overcome these prescriptions from the European Commission, and what measures we will take to control the situation," emphasized Vezieva. According to her, we are still in a state where Bulgaria can handle the EU procedure and present "sufficiently good measures to reduce expenses."

She added that "the further procedure depends on what measures we propose to the European Commission." According to her, the revenue side of the budget looks good, but the question arises: "what is the quality of the revenue?" "We have consumption growth, but the share of industry and production in it is very low," noted Vezieva, warning that this makes the economy more vulnerable.

"Let's stop lying" and make structural reforms

The former minister believes it is normal for the government to want to be "clear about the overall picture" before taking on long-term commitments. "Before we entered the Eurozone, we talked about how 'massaged' the numbers were; others called them 'accounting tricks,' but ultimately the feeling remained that there were not very transparent processes and procedures," she said.

Vezieva pointed to the fact that "no dividend tax was taken from banks," which she believes is a "serious hole in the budget for the next year." "It is high time we stopped lying and made the right structural reforms so that we have a sustainable and balanced budget in the next 3 years, with a deficit below 2 – something we cannot achieve in 2026, but something that must happen in the coming years," she commented.

According to her, the government can request a "correction of the macro-framework" if it presents its vision for the development of the state. "I hope they do it, because that is the right approach in this situation," said Vezieva, reminding that the latest European Commission report is "quite negative" and notes problems such as the "demographic crisis," "automatic income increases without productivity," and the "state of education."

Low unemployment, lack of staff, and the need for reform

Vezieva drew attention to the paradox that Bulgaria has "very low unemployment," but at the same time an "endless lack of staff." According to her, this means that a reform is necessary, "entirely oriented toward the efficiency of public service."

She reminded that there are still "doctors who work for extremely low salaries," as well as "department heads in the administration" with "quite low remuneration." "We shouldn't paint everyone with the same brush. A full reform is needed, and it must be result-oriented," emphasized Vezieva.

Social security, flat tax, and the middle class

In the context of the discussions about civil servants, she warned that no serious fiscal effect will be achieved just by "making civil servants pay their social security contributions." "It is not quite like that. We cannot reduce the level of individual remuneration. To pay their social security, their remuneration must be increased," she explained.

Regarding possible changes in tax policy, Vezieva was categorical: "If the flat tax is touched at the moment, it means killing our middle class." According to her, it is the middle class that is the bearer of stability, and any sharp change in the tax system could have serious consequences for consumption and investment.

Confusing promotions and the "Caring Basket"

Vezieva also commented on the topic of prices in large retail chains and the effect of initiatives like the "Caring Basket." Asked if she shops in these chains and notices a difference, she replied: "We see, we see, and all the other promotions that are running. Some are at more favorable prices. With others, you get confused and don't know what the discount actually is."

She emphasized that consumers should be especially careful: "We must monitor all prices, even those on promotion." According to her, the situation in the chains is "delicate," and the big question is why the public debate is focused primarily on "goods that are domestically produced." "Why don't these 15% include goods that come from outside and are more expensive?" asked Vezieva, questioning the current design of consumer protection measures.