• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Bulgarian political uncertainty unlikely to affect key policies

4 years ago
in Economy, Features, highlights, Home, home-news, latest News, Opinions
2 min read
0 0
0
52
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

The failure to form a government after April’s Bulgarian election raises the possibility of prolonged political uncertainty, Fitch Ratings says, but this is unlikely to result in significant changes to key economic policies. Commitment to prudent fiscal and macro policies, and euro accession is broad-based and long-standing, and none of the anti-establishment parties that made gains are seeking to change relations with the EU.

Public dissatisfaction with the country’s established political parties, fuelled by corruption scandals at various levels of government that led to a series of protests in recent years, was reflected in parliamentary elections held on 4 April. The centre-right Citizens for European Development of Bulgaria (GERB), the leading party in the incumbent coalition government, won the largest share of the vote but this fell to 26.2% from 32.7% in 2017. At 15%, the centre-left Bulgarian Socialist Party’s (BSP) share of the vote almost halved.

Anti-establishment parties increased their representation, notably There Is Such a People (TISP), formed by TV anchor Slavi Trifonov last year, which is now the second-largest parliamentary party after winning 18% of the vote. The three-party centrist Democratic Bulgaria alliance received 9.5% of the vote.

The more fragmented National Assembly increased the challenge of assembling a government, with GERB failing to build a coalition even after its leader Boyko Borissov said he would not remain as Prime Minister. TISP was unwilling to work with GERB or to govern with BSP support. Following three failed attempts to form a government, Bulgaria will now face fresh elections, most likely in early July, but opinion polls suggest these would not greatly improve prospects for the formation of a government. A multi-party coalition could prove unstable, as they have in the past.

Fitch noted the potential for uncertainty following April’s elections when we last reviewed Bulgaria’s sovereign rating on 19 February. The Positive Outlook we assigned to the ‘BBB’ rating reflected the dissipation of macroeconomic risks from Covid-19 and continued gradual progress towards eurozone membership (planned for 2024). We still see little risk of abrupt changes to the macro-economic policy settings that underpinned the Outlook revision.

All parties, including those that are anti-establishment, see significant benefits to investment and growth from upcoming EU funding programmes. Cross-party consensus on euro adoption is similarly broad, as is commitment to fiscal prudence and the currency board framework.

Indeed, questions around the rule of law, institutional quality and corruption have become central to domestic politics, which could help accelerate reforms in these areas, which lagged under the outgoing government. Bulgaria’s governance indicators are in line with ‘BBB’ category peers but are the weakest in the EU.

RelatedPosts

African Nations Face Painful Trade-Offs as Climate Spending Outpaces Health and Welfare Budgets

Bank of Ghana Sets Gold Coin at GHS 44,992 Amid Strong Bullion Prices

Africa Loses $12.7bn Annually to Infrastructure Damages From Disasters

However, when new elections are called, an interim government will take power, with limited executive prerogatives and no ability to pass legislation in parliament. Protracted political stasis could delay reforms, including those linked the Next Generation EU (NGEU) Covid-19 recovery fund, of which Bulgaria is set to be a major beneficiary. The extent of conditionality around NGEU disbursements remains unclear, but is increasingly in focus as recipients submit their Recovery and Resilience Plans (RRPs) to the European Commission.

Fitch believes EU funds, including transfers under the next 2021-2027 Multi Annual Framework as well as NGEU funds, could lift growth from a projected 3.4% in 2021 to 4%-5% in 2022-2025. In the absence of clarity on Bulgaria’s capacity to absorb and deploy NGEU funds, which may face institutional, administrative and political constraints, we have not yet made an assessment about whether they could improve longer-term growth potential by lifting investment and productivity. Bulgaria’s low growth potential is a sovereign rating weakness.

Source: fitchwire
Via: norvanreports
Tags: Bulgariakey economic policiesprolonged political uncertainty
No Result
View All Result

Highlights

Privatisation: Telecoms’ $76bn Investment yet to Connect Millions

From PR Spin to Hard Evidence: Why E&P Now Owns Azumah

Engineers & Planners Asserts Lawful Ownership of Azumah Mines Amid Workers’ Jubilation

Africa Setting New Terms for the Scramble of its Minerals

Black Stars Secure Crucial Win Over Mali in World Cup Qualifiers

European World Cup Qualifiers: Kosovo Shocks Sweden as Italy Edge Israel in Nine-Goal Thriller

Trending

Features

African Nations Face Painful Trade-Offs as Climate Spending Outpaces Health and Welfare Budgets

September 9, 2025

African Nations Face Painful Trade-Offs as Climate Spending Outpaces Health and Welfare Budgets African governments are making...

Bank of Ghana Sets Gold Coin at GHS 44,992 Amid Strong Bullion Prices

September 9, 2025

Africa Loses $12.7bn Annually to Infrastructure Damages From Disasters

September 9, 2025

Privatisation: Telecoms’ $76bn Investment yet to Connect Millions

September 9, 2025

From PR Spin to Hard Evidence: Why E&P Now Owns Azumah

September 9, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.