Bulgarian press review, November 17, 2009

Press Review
Sofia, November 17 (BTA)

ECONOMY

Tuesday dailies lead on Parliament's first reading of the 2010 draft budget. In a "Dnevnik" interview, parliamentary Budget Committee Chair Menda Stoyanova says that public services will worsen unless the budget is tied with the implementation of reforms. According to her, 2010 budget revenues may come short of the target if EU outlooks about the end of the recession prove wrong. Bulgaria's is a small economy and it will pick up only after markets pick up. Stoyanova sees another risk if the Customs Agency and the National Revenue Agency fail in their efforts to curb the grey economy. Expanding grey economy under a crisis is a predictable phenomenon, which is why the two agencies are expected to tighten their control.

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In a "24 Chassa" interview on the 2010 budget former prime minister Ivan Kostov [1997-2001] says that in 2010 Bulgaria's economy is more likely to contract by 3.7 per cent instead of government's projections of 2 per cent and that the government's attempts to create the false impression that it is keeping things under control are ill-timed. Kostov says that the government will not convince the banks to decrease interest rate just by magic spells and to this end he has proposed two packets of measures to the Finance Minister. Under one of the measures, the 70 per cent of the 1.7-billion leva pension Silver Fund deposited with foreign banks may be returned to Bulgarian banks under certain guarantees.

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"Zemya" headlines "Budget of Panic."

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"Pari" front-pages that instead of the extension of anti-crisis measures, businesses will have to pay a higher excise duty on electricity.

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Responding to a question by "Troud" whether Bulgaria's natural gas agreements will be made public, Economy, Energy and Transport Minister Traicho Traikov says that certainly "steps will be made to that effect". However, Traikov goes on to say that the issue is sensitive as gas and gas agreements are only a link in a chain. Galina Tosheva will keep her post as Executive Director of the Bulgarian Energy Holding, the Minister added.

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Under the headline "First Protest against Government," "Douma reports that Economy Minister Traicho Traikov refused to face the 200 workers of the Kremikovtzi steel mill who gathered Monday outside his ministry. Lyudmil Pavlov, leader of the Podkrepa Labour Confederation chapter at Kremikovtzi, said that the workers are against the mill's liquidation and see a recovery plan as the only viable option. They also demand that environment-friendly plants at Kremikovtzi remain in operation.

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Non-performing leases increased by nearly 85 per cent quarter on quarter, according to figures of the Bulgarian National Bank. In September, non-performing loans were 688 million leva, against 374 million leva in the second quarter of 2009. In comparison, a year earlier they were just 50 million leva. New leases were worth 217.3 million leva, or 79.8 per cent down from the 860 million leva of the like period of 2008.

THE HOME SCENE

GERB candidate Yordanka Fandakova has become Sofia's first woman mayor, winning 66.23 per cent of the vote at the Sunday by-elections, Tuesday dailies report. Runner-up Georgi Kadiev [Bulgarian Socialist Party] garnered 27.71 of the vote, show the final results. Albena Bachvarova of the Sova Harris polling agency writes in "Troud" that Fandakova nomination was supported by the younger and more active population. According to the agency, women, the well-educated and those with steady jobs made up the majority of voters. GERB, the Union of Democratic Forces and Democrats for Strong Bulgaria had agreed to run with a single candidate in the mayoral by-elections. Eleven per cent of the votes for Fandakova came from the Blue Coalition, described by observers as "modest". According to Vassil Tonchev of Sova Harris, the support of the rightist parties helped Fandakova avoid a second round of voting. At two per cent, even weaker was the support of GERB loyal ally Ataka. Analysts see it as yet another sign of the decline of the ultra-nationalist party, which is being taken over by GERB, according to Tonchev. Of all Roma voters, 60 per cent voted for Fandakova. BSP candidate Georgi Kadiev received some votes outside his party, but lost some of the socialist grassroot supporters. Twenty-five per cent of those who voted for Kadiev do not support the Bulgarian Socialist Party. In a commentary for "Standart News", Miroslava Radeva of MBMD says that the by-elections have beefed up GERB and finished off the Left.

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Under the headline "Country Mayor Rebels against Sofia," "24 Chassa" reports that Sliven [South Central Bulgaria] Mayor Yordan Lechkov has threatened to alert the European Commission about a large-scale project in his native town, which has been blocked by the government. Lechkov protests over the suspension by the Environment Ministry of the contract award procedure for the second stage of the reconstruction of Sliven's water supply network, funded under the Operational Programme for the Environment. According to Lechkov, it is not fair for the country to work for the capital. Environment Minister Nona Karadjova has denied that funds have been frozen. In her words, Lechkov asked for a bigger advance payment than what had been agreed with former environment minister Djevdet Chakurov. Lechkov claims that Sliven is the only municipality with approved projects for the reconstruction of the town's water network to the amount of 41 million euro. "The Ministry should not interfere in an EU programme, which we have won and co-financed," Leckov says. He insists that EU funds which should be absorbed by local governments are being delayed by the government and that nearly 1,000 million euro have been channeled into the national budget.

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Postponed infrastructure projects, problems with road maintenance during winter and cuts in administration make up municipal agendas in 2010, according to a survey run by "Dnevnik" among mayors across the country. This is due to the cuts of 200 million leva in state subsidies in the 2010 draft budget, which for the first time in several years will allocate fewer funds than in previous years. Worst hit will be small and medium municipalities. The main concerns arise from the nearly twofold decrease in state transfers for capital expenditures. In 2010 they will be 117 million leva against 205 million leva in 2009.

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According to "Standart News", the office of Education Minister will be contended be Plamen Legkostoup, Rector of the Veliko Turnovo University, and Deputy Education Minister Sergei Ignatov. "Telegraph" adds a third contender, Malina Edreva, Chair of the Education Committee with the Sofia Municipality.



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In a "Troud" interview, political scientist Ognyan Minchev says that the government has a face of its own by running a clear line between its friends and foes. In his words, politics in Bulgaria has got rid of the tradition of hidden agreements between the political elite. One of the upsides according to Minchev is that the new government acts in a way that shows it is accountable before voters and it feels compelled to explain the steps it undertakes. Minchev highlights as the biggest problem the exclusion of the Movement for Rights and Freedoms and the National Movement for Surge and Stability from the audit carried out by GERB of the former government.

SOCIETY

Star-crossed lovers Albena Dimchova, 16, and Tsvetan Mirchev, 15, threw themselves under a train near a railway station in the Northwestern town of Brussartsi on Sunday morning, front-pages "Troud". Albena was a mayor's daughter, while Tsvetan was a poor Roma boy. As the 223-tonne train neared the station, the two jumped in its path holding each other. Albena died on the spot, while Tsvetan is said to be in critical condition. He has a serious head injury and crushed bones in his arms. His family was forced to sell a barn to pay for his treatment.

Links to some Bulgarian info websites in English:

· http://www.bta.bg/site/en/indexe.shtml
· http://www.novinite.com/index.php
· http://www.focus-fen.net/

Most discussed topics of the day – November 17, 2009

· Sergei Ignatov will be nominated for the post of Education, Youth and Science Minister, Prime Minister Boyko Borissov told journalists in Parliament. A Deputy Education Minister until now, Ignatov substituted for Minister Yordanka Fandakova who was elected Mayor of Sofia. He also held the position of Rector of New Bulgarian University since 2002 and has managerial experience which will help him in his job.

· The National Assembly passed Tuesday on first reading the national budget for next year. For the first time in many years, this did not follow debates but only a statement by Democrats for Strong Bulgaria leader Ivan Kostov. The MPs passed the bill with 135 votes "for", 44 "against" and no abstainee.
The priorities in the expenditure side of the budget are education, health care, the social sector, environment and road infrastructure.
The government commits itself to maintain a balanced budget which supports its efforts to restore the economy and proves that government spending is under control, PM Borissov stated during the parliament debate. According the Prime Minister there is no alternative to the scenario for the Bulgarian economy, incorporated in the 2010 budget, whereby the government seeks to attain economic development, fiscal stability and a stable macroeconomic environment.

· The police have arrested a 30-year-old man from Sofia for double murder after an incident near the Vacha Dam in Southern Bulgaria. Interior Minister Tsvetan Tsvetanov confirmed the murder that occurred at 21:00 Monday night after 3 men went fishing on a pontoon of the dam reservoir. An argument allegedly occurred at the lake side and the 30-year-old man pulled out a legally owned hand gun and shot his 30 and 35 year-old fishing colleagues.