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It is increasingly unlikely that the current National Assembly can form a government
Yesterday, Bulgaria’s Minister of Finance from the caretaker government, Asen Vasilev, announced that if the elected representatives cannot form a government and the country needs to hold new elections, the caretaker government will have to submit the post-Covid recovery plan to the European Union.
Although the caretaker government is trying its best to avoid making long-term financial decisions for the country, especially regarding the EU-recovery funds, the prolonged lack of an elected government has somewhat forced their hand.
Their main motive about submitting the proposal to the EU before the end of the year is that if they do not, the country will not receive the 800 million euro advance payment. This advanced payment was already written into the 2021 budget by Bulgaria’s previous administration and if they do not come through, they will show up as a deficit.
Initially, the recovery plan was developed by the last elected government with Boiko Borisov as the Prime Minister. However, their version of the proposal was incomplete and faced heavy public scrutiny. The caretaker government started working on a preliminary version of the recovery plan after the parties elected to the national assembly failed to form a government following the April 2021 election.
Once again, after second parliamentary elections in July, it seems increasingly unlikely that the political parties will be able to form a government and the country is bracing for its third parliamentary election in the same year. Currently, the proposed time for the election is in December, so that the government can cut administrative costs and combine the presidential with the parliamentary election.
Minister Vasilev commented that if the National Assembly is able to form a government next week with the third mandate, the caretaker government will step back and leave work on the recovery plan to them. However, if the country faces new elections, they will have to act on the European level.
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