Economist Emil Dimitrov has no experience in environmental protection, and critics fear he will be unable to resolve the problems he inherits from Neno Dimov, who stepped down after being arrested for abuse of office.
Neno Dimov was detained over illegal siphoning from a reservoir that deprived a major industrial town of water supplies. He is the first serving minister ever to be arrested in Bulgaria.
The European Commission’s batch of Economic Sentiment Indicators (ESIs) fell sharply in December, although they remain consistent with regional GDP growth holding steady at around 3.6% y/y in Q4. Robust domestic demand should help to cushion the blow
Bulgaria aims to adopt the euro and hopes to join the ERM2 in April. A failure to achieve this would be a blow for Prime Minister Boyko Borissov’s scandal-hit government as parties start to position themselves ahead of the 2021 election.
The government in Sofia hopes to finish the project within 10 years at a cost of up to €10bn, but critics question its economic viability.