January 21 (SeeNews) - Bulgaria's Prime Minister Boyko Borisov said on Thursday he would propose that his economic advisor Ilian Mihov is appointed deputy premier in charge of absorption of European Union funds, local business daily Dnevnik reported on Thursday.
Mihov, a professor of economics at the European Institute of Business Administration (INSEAD), has already given his consent to become deputy premier, Dnevnik quoted Borisov as saying in the town of Pernik, some 30 kilometres west of Sofia.
Finance Minister Simeon Dyankov and Interior Minister Tsvetan Tsvetanov are the two deputy prime minsters in the cabinet formed by right-of-centre GERB party led by Borisov. On Wednesday, Borisov said he would propose Mihov to be appointed minister to assist the government in the field of economic supervision and financial operations aimed at stabilising the state budget.
Mihov's exact responsibilities as deputy prime minister would be annonced later after consultations with other centre-right parties in parliament and would be similar to those of Meglena Plugchieva in the previous Socialist-led cabinet, Borisov said.
Former Prime Minister Sergei Stanishev appointed Plugchieva, who now runs for a Vice President of the European Bank for Reconstruction and Development, deputy premier in charge of absorption of European Union funds in April 2008 to alleviate the European Commission's concerns that Bulgaria was mishandling EU money. Earlier that year the EU executive froze millions of euro in funding for Bulgaria over suspected graft.
Besides helping the government improve the absorption of EU funds, Mihov would assist Simeon Dyankov in preparing Bulgaria for joining the Eurozone and would help Economy Minister Traycho Traykov implement hard decisions in the economy, Dnevnik quoted Borisov as saying.
"I want to know what is happening with the economy every day, that is why I need a macroeconomist like Mihov," Borisov said.
"[...] I want to reinforce the state in the sphere of economy and finance [...]. In no way functions are being withdrawn from Dyankov, on the contrary, he needs 30 hours a day to fulfil his normal duties," he added.
Opposition Socialists see the planned appointment of Mihov as confession by Borisov that his economic team was weak and Dyankov could not fulfil his obligations properly, Dnevnik reported.
Mihov teaches in the Global Leadership Fellows program of the World Economic Forum. He holds a PhD degree from Princeton University, where he worked with the chairman of the United States Federal Reserve, Ben Bernanke. Mihov has co-authored four papers on monetary policy with Ben Bernanke.