Blue Bulgaria Proposes Fiscal Anchor in Constitution

On Sunday, Dr Petar Moskov presented on NOVA the idea of introducing a fiscal budget anchor that would limit the taking on of new state debt within a single year to half a percent of the gross domestic product for the previous year. According to Dr Petar Moskov, the proposed amendment to the basic law draws directly on Germany’s practice.

The political formation Blue Bulgaria is proposing an amendment to the Constitution that would introduce the so-called fiscal budget anchor based on the German model. According to the sponsors, similar constitutional mechanisms are already operating successfully in a number of European countries such as Germany, Switzerland, Sweden, Spain and Poland, where they lead to much better financial discipline and economic stability.

Moskov stressed that inflation effectively represents a tax on the poorest people and can be brought under control precisely through such restrictive measures. Inflation is the tax of poor people, he said. According to data cited by Moskov, every working Bulgarian citizen has currently accumulated indirect liabilities of approximately 12,000 euros because of the state debt, while under an active fiscal anchor this amount would have been around 6,000 euros.

Asked how he expected to gather enough votes, Moskov explained that the proposal had already been sent to all parliamentary groups, to the president and to the Council of Ministers. We are seeking political consensus around arguments and meaning, not around who is to blame for the past, he said. To be adopted, however, the proposal needs the support of at least 160 MPs.

Ivan Sotirov from the same formation also supported the argument, saying that living on credit is a direct theft from the future of our children.

The Blue Bulgaria representative justified the need for the restriction with the fact that in these countries inflation levels and overall economic stability are much better than in countries without such restrictions.