"Economic Policy Review" Bulletin ISSN 1313 - 0544

08.12.2011

The Alternative State Budget of Institute for Market Economics (IME) is presented for ninth consecutive year. Our goal is to show that an alternative fiscal policy with low taxes, balanced budget and structural reforms is possible. Such a budget is a good base for economic growth and for meeting possible external shocks through low debt, relatively low state redistribution and structural reforms. The introducing of the so-called “fiscal board” in the Constitution will further strengthen the prudent fiscal policy.

Salvation for All Europe

Desislava Nikolova / 08.12.2011
In July, the 17 Member States of the Euro area signed an agreement for the new format of the European Financial Stability Fund (EFSF). The main elements of the "corrected" Fund are the increase of the guarantees that the Fund could emit for loans of troubled countries in the Euro area and the possibility of the Fund to intervene "in case of emergency" in the primary market for Government debt. In that way the Fund will be able to buy directly government bonds at the time of their emission.

Ministry of Interior – a Fairytale with No End

Kaloyan Staykov / 08.12.2011
When a few weeks ago the Institute for Market Economics (IME) suggested that the Ministry of Interior (MoI) shall increase its internal revenue, we meant that it should be done by means of better management and asset sales and not by expanding the scope of the fees it collects.

Economic Imperatives of Political Instability

Yavor Aleksiev / 08.12.2011
At this stage of the development of the debt crisis in the Eurozone, it is not premature to point to the lack of political will at both national and European level and to the institutional immaturity of the union as the main barriers to making effective decisions aimed at solving the growing pile of problems.

Who and What is No Longer Bound to the Trade Unions and the Minimum Wage

Zornitsa Slavova / 08.12.2011
This week there has been news as to the increase of the minimum wage (MW). Under pressure from the trade unions as of 1 September it was increased from BGN 240 to BGN 270 and the government started to worry how it is going to manage with the budget as a number of payments also have to be increased...