- Political stability
- Fiscal affairs
- Monetary policy
- Regulated markets
- Privatisation
- Macroeconomic developments
Left turn – risk or ongoing reforms
submited on 21.04.2008 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
submited on 21.04.2008 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
When the prime minister declared that the government will start “war” with low wages and the grey economy, it probably took into account that the first battles have already been won. The average wages, as reported by the NSI, have grown at 23% and there are no indications that the process will cease in the beginning of 2008. The high growth of consumer prices decreased the real income growth to the “modest” 1% - rate, which would make many governments in mature economies envy. The unemployment is at record-low levels of 6.7-7.3% in the recent months – better indicator than those of Germany, France, Italy and Belgium. Furthermore, Bulgaria is among countries with largest realized decline in unemployment for 2007 in the EU.
Together with this the collection of direct taxes grows at considerable rates. The economic team of the government takes into account that all this became possible due to changes in policy, which stimulated the private sector, attracted investments and made Bulgaria better place for establishing business on comparative scale.
In this context we could speculate what would a “left turn” mean. The defining of “social” is relatively simple – it would mean that the government has to contribute to the personal prosperity and the defense of all citizens.
There is a way for social goals to be accomplished with reforms, compatible with and even supporting market freedom and growth. One example is the already made decision for reducing employment in administration - which would lead to improving efficiency, increasing income of those, left at work, and the others would become resource for future growth of the private sector.
Together with this the collection of direct taxes grows at considerable rates. The economic team of the government takes into account that all this became possible due to changes in policy, which stimulated the private sector, attracted investments and made Bulgaria better place for establishing business on comparative scale.
In this context we could speculate what would a “left turn” mean. The defining of “social” is relatively simple – it would mean that the government has to contribute to the personal prosperity and the defense of all citizens.
There is a way for social goals to be accomplished with reforms, compatible with and even supporting market freedom and growth. One example is the already made decision for reducing employment in administration - which would lead to improving efficiency, increasing income of those, left at work, and the others would become resource for future growth of the private sector.
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