“Empty their Pockets”
Exactly one month ago IME came out with the position, that the proposed “anti-crisis” plan (the one with the 60 measures) will not work and will not cover the hole in the budget. Now it is recognized by the government too, which at once spoke about an increase of the VAT with more than 2 percentage points. With promises like “now we will raise it, and later we will take it down even more” it is expected the idea to be sold to the society as something that is not pleasant, but simply necessary.
How to attract foreign investments
As expected the current account deficit continued to shrink during January following the stable reduction trend since the end of 2008, i.e. since the crisis was felt in Bulgaria. The deficit shrunk to 248.9 mln. Euro compared to 401.4 mln. Euro for January 2009. Compared to GDP the deficit shrunk from 1.2% in January 2009 to 0.7% from the official BNB (Bulgarian National Bank) GDP forecast for 2010.