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Ceased European funds – good news for the Bulgarian taxpayer
submited on 24.07.2008 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
submited on 24.07.2008 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
Every contraction of state expenditure must be considered positive. Thus, the financial resource will remain in the private sector and will therefore be allocated toward more beneficial uses. In this line of thoughts, the ceasing of the EU funds ISPA and PHARE for Bulgaria are good news for European taxpayers, including Bulgarians.
There is the widespread thought that many public services would not exist without state financing. We also know that many people will regret missed benefits of EU funds’ financing.
The European commission also needs its own actions’ legitimacy before the European voter and taxpayer.
The construction industry on the side will lose many of its orders after the ceasing of the ISPA program for Bulgaria. This means that other clients will have better chances to negotiate price and quality, which best serve them. The construction business resources will be allocated toward greater needs than the state financed projects.
The income of the average Bulgarian will not change by the lack or presence of EU funds. Change in income could come from more accurate allocation of resources in productive entrepreneurial efforts, rather than occasional funds’ absorption. There is a problem, stemming from some state expenditure ceasing, a group that would directly benefit from them. But on a macroeconomic scale the limitation of clerks’ economic power is good news for Bulgaria. Funds would not vanish with the disappearance of certain agencies, and only come back into the hands of those, who would allocate them more effectively. The geographical allocation of resources in Europe must not be decided by the state institutions, but rather by private investors.
There is the widespread thought that many public services would not exist without state financing. We also know that many people will regret missed benefits of EU funds’ financing.
The European commission also needs its own actions’ legitimacy before the European voter and taxpayer.
The construction industry on the side will lose many of its orders after the ceasing of the ISPA program for Bulgaria. This means that other clients will have better chances to negotiate price and quality, which best serve them. The construction business resources will be allocated toward greater needs than the state financed projects.
The income of the average Bulgarian will not change by the lack or presence of EU funds. Change in income could come from more accurate allocation of resources in productive entrepreneurial efforts, rather than occasional funds’ absorption. There is a problem, stemming from some state expenditure ceasing, a group that would directly benefit from them. But on a macroeconomic scale the limitation of clerks’ economic power is good news for Bulgaria. Funds would not vanish with the disappearance of certain agencies, and only come back into the hands of those, who would allocate them more effectively. The geographical allocation of resources in Europe must not be decided by the state institutions, but rather by private investors.
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