European Commission on Bulgaria: Unwarranted optimism on economic recovery, lack of reforms

A report by the European Commission on Bulgaria, coincidentally released just after a year of the Bulgarian Socialist Party government, has found unwarrated optimism about reviving the economy, a lack of reform of several key sectors and a lack of progress in combating corruption.

These are the main findings of the European Commission (EC) on the national reform program and convergence program of the government for 2014

The report, released on June 2 2014, made six recommendations on the basis of serious shortcomings identified. These recommendations cover tax policy, the pension system, the labour market, education, energy and improving the business environment. Most of the recommendations have been made in previous reports by the EC, but no progress has been seen and in some areas, there has actually been a reverse.

Bulgaria’s forecast economic growth of 2.1 per cent this year and 2.6 per cent next year exceeds the forecast by Brussels, whose data are for growth of 1.7 per cent in 2014 and two per cent in 2015.

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(Photo: JLogan)