The idea of nationalising the second pension pillar represents an encroachment on citizens’ private accounts, Democratic Bulgaria MP Martin Dimitrov said in the corridors of the National Assembly. He made the statement following a meeting of the Budget and Finance Committee.
According to him, the ruling parties are looking for a way to use the funds accumulated in private pension funds to fill the budget deficit. Dimitrov described such a step as the seizure of personal property.
“The idea of nationalising the second pillar of pension insurance is like someone coming to your home and taking your television to pay off the budget deficit,” Martin Dimitrov said.The dispute concerns the choice between the second pillar and the National Social Security Institute
According to the MP, every insured person currently has a legal mechanism to voluntarily transfer their account from the second pension pillar to the National Social Security Institute if they decide that this is in their interest.
Dimitrov claims that the proposed change would replace personal decision-making with an automatic transfer. He warned that this would deprive citizens of the opportunity to choose for themselves where their pension funds are managed.
“We will not leave people to decide whether to transfer their money from the second pillar to the National Social Security Institute. We will do it automatically instead of them,” the MP said, presenting his position on the intentions of the ruling majority.According to him, a proposal to return the funds from the second pillar to the state-run public insurance system has so far been submitted by Vazrazhdane during the budget discussions. Dimitrov said that such a policy would set a precedent for restricting private property.
Warning about the deficit and inflation
Martin Dimitrov insisted that, instead of targeting pension savings, spending should be cut and the budget deficit limited. He warned that financing expenditure through new loans could increase demand and lead to higher prices.
The MP said that the bills submitted showed an intention not to keep the deficit below the threshold of 3 percent. In his view, removing the requirements for fiscal adjustments would allow the authorities to increase spending, while citizens would bear the consequences through higher inflation.
“A catastrophe along the path they have taken is inevitable. The question is when it will happen,” Dimitrov warned, describing the coming winter as exceptionally difficult.He compared the expected economic situation with the scenario under the government of Zhan Videnov. Dimitrov called on the ruling majority to take measures to rein in the deficit and said that the budget must not be allowed to get out of control.