Bulgaria’s National Assembly ratified completely the agreement with four banks regarding the issue of a debt to the tune of EUR 8 billion. The resolution was backed by the Parliamentary groups of GERB, the Reformist Bloc, the Movement for Rights and Freedoms and the Alternative for Bulgarian Revival and the Bulgarian Democratic Center. The Patriotic Front which promised in the beginning of its mandate to support the ruling coalition abstained during the voting in the plenary hall. The Bulgarian Socialist Party and Ataka voted against the proposal. The voting had to be held last Wednesday, but was postponed due to the Patriotic Front and The Alternative for Bulgarian Revival (ABV) parties. After consultations with Bulgaria’s Minister of Finance their leaders categorically announced that they would not support the ratification. The Movement for Rights and Freedoms also announced that they would vote against.

On Wednesday, however, after a very tense debate, the broad support of the proposal became a reality, because ABV and the MRF suddenly changed their stand. Both parties backed their decision to vote in favor of the new debt with the same motifs: they were satisfied with Minister Goranov’s answers who explained that EUR 8 billion was the maximum amount of the loan and that the country did not have to borrow its full amount.

“I believe in the capacity of this cabinet to make reforms and promise that at least EUR 1 billion of the estimated amount, which includes payments of previous loans and estimated budget deficit, will not be borrowed by all means”, Minister Goranov said.

“We are holding debates over this problem in terms of the technology used for reaching a majority in Parliament”, political expert Strahil Deliysky comments. “When we are talking about such type of political decision, the debate must be oriented towards the country’s strategic goals and the purpose of the national economy. However, I did not see such a debate at the National Assembly. If we continue to borrow loans, in order to finance old debts, the cabinets and the banks are the ones who will benefit from this act only. However, it is not in favor of the societies which participate in this act. This is the easiest way to postpone the long-awaited reforms in the country. Neither the ruling coalition, nor the opposition was willing to discuss the structural characteristics of the national economy. This is so, because the political elite do not behave as such. One of the key features of the political elite is its ability to develop long-term perspectives. Our political elite rather behave as juncture formations, which are known in science as plutocracy.”

The long-awaited ratification of the new debt proved that the idea of GERB about floating majorities, mentioned during the consultations preceding the formation of the current cabinet, has become a reality. MP Yordan Tsonev said earlier in Parliament that the MRF has withdrawn from the former ruling coalition, in order to create a better political environment and that the party was satisfied with the fact that the new cabinet had intentions to make the necessary reforms. This was not the first support declared by the MRF - let us recall the voting regarding the new pension fund act. Bearing in mind the negligence shown by GERB towards the smaller political formation in the ruling coalition and the political confrontation between the MRF and the Reformist Bloc, the leader of the reformists Radan Kanev gave a sign and voted against the new debt at a first reading, yet he voted in support at a second reading. Here is what he told Radio Bulgaria.

“There was a serious doubt that we witnessed a political maneuver aimed at altering the parliamentary majority. The statements which were coming from GERB representatives did not hide their intentions to take the Patriotic Front and possibly the Alternative for Bulgarian Revival out of the current majority. We all saw how ABV made a strange turn in the last moment. However, the patriots failed to do so. We have to eradicate these doubts, because the stability of the country has two aspects. The first one regards the necessity to vote for financial stability. The second one regards the existence of a strong majority which has to make the necessary reforms, so we do not have to borrow such loans in the future.”

The issue about the floating coalitions can be continued, because the authorities may find money requested by given municipalities, or finance certain public projects. The question is which political structure would be partial to them. Apparently, the processes surrounding the Floating Coalition phenomenon will not be painless. Shortly after ABV party voted in support of the new debt, the leader of the political party Georgi Parvanov said he would hand in his resignation during the first sitting of the National Council of his party.

English version: Kostadin Atanasov