Is Bulgaria guilty of forging Public Accounts like Greece and Hungary?

The Greek Contagion was precipitated by news that Greece has fudged public account figures to gain admittance to the European Union taking the help of Goldman Sachs (using structured finance products).This led to a heightened risk perception about the quality of Greek Budget figures and led to a Bond  Crisis which had to be ultimately rescued by a $1 Trillion Bazooka by the EU.The success of that rescue operation is open to question with the Euro making new lows everyday.Hungary also came under fire with the new Government blaming the previous administration of hiding problems with public finances.

European Union officials are now raising questions against Bulgaria with a sharp revision in Public Deficit Figures form 1.9% to 3.7%.Bulgaria which was a part of the previous Soviet Bloc and a recent 3 year old entrant to the European Zone still uses Forint as it currency.It has been under fire from the EU for failing to check corruption and organized crime.

The Global Financial Crisis has continuously exposed frauds and irregularities around the world . The Madoff scandal,the Satyam fiasco,the Greek Crisis and the Bulgarian fudging though unrelated have the same underlying theme.

EU: Bulgaria statistics are worrisome – AP

Bulgaria’s public finance statistics are worrisome and should be checked by European Union officials, the bloc’s economy commissioner said Tuesday.Olli Rehn told reporters that he had “some concerns” about the country’s figures and wanted to use newly gained auditing powers to investigate any issues.

“We are considering sending a mission shortly,” he said.Bulgaria sharply revised its 2009 budget deficit from 1.9 percent of gross domestic product to 3.7 percent in April, saying it would also put plans to adopt the euro currency on hold.The sudden change in the deficit — the yearly gap between government spending and revenue — echoes the situation in Greece, which triggered Europe’s debt crisis last fall by admitting that it had falsified and misreported statistics to make its debt look smaller.