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The Lack of a Clear Vision About Overcoming the Crisis and The The lack of a clear vision about overcoming the crisis and the cha- otic and inconsistent moves in the government’s decision-making pro- cess to this effect brought about the first more tangible decline in the confidence rating of the Cabinet. The ruling party continues to focus its efforts on combating crime, which thus far has won the approval of the country’s population. Should, however, the situation in the country re- main unchanged over the following months, and should the confidence rating of the ruling party continue to decline, possible re-shuffles in the government cannot be ruled out. Boiko Borissov has already said that the economic team of the government needs some reinforcement. Therefore, it is in the economic team precisely that changes are likely to take place. The Blue Coalition is becoming increasingly more critical with respect to the economic policy pursued by the government. Although it gave its support to the updating of the government budget, the Blue Coali- tion insists on launching reforms in the sectors of healthcare, pensions, and the state administration. Should the government fail to overcome the crisis, the Blue Coalition might withdraw its support for the GERB Party altogether. This, however, could take place at the end of the year at the earliest, when the real outcomes from the fulfillment of the government budget may become obvious. The majority of the electorate cannot recognize the BSP as a political alternative to the GERB Party. The reasons why lie in the fact that the party is focusing too many of its resources on internal party in-fights. This cre- ates conditions for the isolation of the party elite from both the grass-root party membership and the supporters of the party, and also leads to the encapsulation of the party. 2/2010 1 Table of ConTenTs Table of Contents ........................................................................................................................................ 1 1. The Political situation .............................................................................................................................. 2 2. situation and Development of the Party system in bulgaria ..................................................................... 4 2.1. Trends and Processes in the Development of the Right-Wing Political space ......................................... 4 2.1.1. The Gerb Party .................................................................................................................................. 5 2.1.2. The attack Party ............................................................................................................................... 6 2.1.3. The blue Coalition ............................................................................................................................. 7 2.1.4. The order, legality, and Justice Party (olJ) ........................................................................................ 8 2.2. Processes in the Development of the Parliamentary opposition ........................................................... .9 2.2.1 The bulgarian socialist Party (bsp) ...................................................................................... ................9 2.2.2. The Movement for Rights and freedoms (Mrf) ................................................................................. 11 3. Public opinion ................................................................................. .....................................................12 4. Major Conclusions and forecasts ................................................................................. .........................14 2 2/2010 1. The Political Situation projects. The subsidy for the political parties paid out of the Republican budget has been over the past three months, the political situa- curtailed by 15 per cent as well. an amount tion in the country was mainly determined by to the tune of bGn 180 million, however, has the deepening economic crisis and the debate been laid down in the updated government about the ways of overcoming it. although budget for funding infrastructure projects, at the end of april the Minister of finance, whereby representatives of the Cabinet de- simeon Dyankov, declared that bulgaria was clared that these projects remain on the gov- coming out of the crisis, the situation with ernment agenda as a major priority. the government budget is more than alarm- The indicators underlying the updated ing. The increasing budget deficit and the versions of the 2010 government budget forecasts that by the end of the year it will were subject to criticism by both politicians have risen to 3.9 per cent brought about the and experts. Thus for instance, the blue Coali- decision of government for the country’s bud- tion deems that the pending reforms in the get to be formally updated by the national pension system, healthcare, and education, assembly. This is the first such updating for which the government must now launch, are 14 years now, since the then governing bsP especially important, alongside the genuine and the Videnov Cabinet made recourse to curbing of all public expenditures. otherwise, this procedure for the last time. the country will be threatened by a new bud- The revised forecasts for the updated bud- get update this autumn, which will also entail get envisage a 1 per cent economic growth serious problems in the government budget rate by the end of the current year, which is for the following year. quite optimistic given the declining rate of In fact, the GeRb government has been investments in the country. The macroeco- spending significantly more in comparison nomic framework of the Republican budget with previous years, when the country’s gov- also envisages a budget deficit forecast to ernance was in the hands of the tri-partite the tune of 3.9 per cent of the country’s GDP. coalition of the BSP, nMsP, and the MRf. The maximum amount of the new 2010 gov- Many economic experts qualify the current ernment debt has been increased from bGn level of spending as unreasonable in a situ- 2.7 billion to bGn 3.5 billion, whereas the ation of a crisis. on the other hand, the lack maximum amount of the overall government of genuine reforms in the public sector, the indebtedness, which cannot be exceeded by launch of which the government has post- the end of 2010, has been increased from poned yet again over this second quarter of bGn 12.2 billion to bGn 12.5 billion. What the year, gives rise to pessimistic forecasts the updated version of the budget also en- about the development of the economic sit- visages is to limit the spending of the vari- uation in the country. ous government institutions, ministries, and The decision of the government to spend agencies by up to 20 per cent. bGn 2 billion from the fiscal reserve to the as far as the local municipal authorities purpose of compensating for the budget defi- are concerned, their expenditures are curbed cit provoked especially polar opinions and a by 15 per cent, with the exception of expen- highly controversial debate. The Minister of ditures on education, social welfare support, finance, simeon Dyankov, justified this deci- defense and security, and the funds already sion by pointing out that this was the only approved and earmarked for environmental possible and reasonable way of solving the 2/2010 3 problem given the current precarious situa- background of the worsening financial image tion. The blue Coalition representatives, how- of the country on the international markets. ever, qualified this move as far too hazardous. In turn, this would entail more unfavorable at the time being, the government has terms upon the floating of such bulgarian given up the idea of raising taxes and social government bonds. The worsened credit rat- security contributions. Prime Minister boriss- ing of the country is also due to the doubts ov, however, said that should the anti-crisis expressed by olli Rehn, the european Com- measures fail to work properly, the govern- missioner for economic and monetary affairs, ment would have no other choice but to raise with respect to the reliability of bulgarian sta- the VaT. In other words, the issue of raising tistical data. taxes is still on the government’s agenda. Yet again, the relations between President In the middle of June it became clear that Parvanov and Prime Minister borissov have a eurostat mission will be arriving in bulgaria remained tense during the second quarter in order to hold an inspection of the statisti- of the current year, too. although the pro- cal data about the country’s economy and cedure for the impeachment of the President budget. The eU institutions expressed their failed to gain support at the national assem- concerns that bulgaria is running an excessive bly, there are clear signs that the difficulties budget deficit, which has not been properly in their relationships will extend into the fu- reflected in the available statistical data. The ture as well. The reasons why lie mainly in the bulgarian government said that it did not fear critical attitude of the President manifested the inspection, because the data submitted with respect to the government, which pro- by the national statistical Institute were cor- vokes the adverse responses of Prime Minis- rect. Despite this fact, however, the eurostat ter borissov and his ministers. Parvanov has mission is a clear signal to the GeRb govern- repeatedly criticized the government on ac- ment about the concerns, which
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