The “stability pact” proposed by Finance Minister Djankov will ensure a sensible government for the business and the people.
Some say that trust is worth more than gold and there’s a lot of truth in this statement. Trust is of fundamental importance not only to interpersonal and business relations, but also to a successful government. Businessmen and foreign investors desperately need state guarantees of Bulgaria’s financial stability over the next few years.
In this context, the idea of Finance Minister Simeon Djankov regarding the establishment of a pact for financial stability should by all means find political support, having in mind the constant belt-tightening in times of the economic crisis. And even if the first signs of the economic recovery have already become noticeable, the Bulgarians are still cutting down their expenses, which slows down Bulgaria’s economic development. The Bulgarian people must feel financially secure, so as to really believe in the economic recovery of the country. And Djankov’s idea, if embraced by the government, may give them a sense of financial security that they need.
Djankov has three main points to it.
First – the budget deficit should not exceed 3% of the GDP even in crisis years and in times of economic growth the Fisc should even score a surplus. Second, the redistribution function of the State should be restricted to 40% of the GDP. And third – the direct income tax levied on physical persons and companies profit should be possible to amend by 2/3 of the votes in the Parliament. And these rules should be put down in the Constitution.
Spurce: http://paper.standartnews.com
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