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EC does not expect fiscal tension in Bulgaria next year

The European Commission does not expect fiscal tension in Bulgaria on the short-run.

This conclusion is contained in a new report on the financial stability in member countries. The report registers that Bulgaria’s foreign debt is considerably below the plausible 60% of GDP. Expectations are that by 2014 the foreign debt would reach 18%, while in 2020 – to reach over 20%. The risks Bulgaria is facing, however, according to the EC, is the aging of the population and related higher expenses in the pension and healthcare sectors.

According to the Commission there is still time for redirecting policies in those spheres and avoid future problems. The challenges the report maps out refer to competitiveness, foreign investments and the price of labor in Bulgaria.

Adapted from BNR