Bulgarian press review, January 13, 2010

Press Review
Sofia, January 13 (BTA)





THE HOME SCENE

"Troud" has a front-page story on the reshuffle in the Movement for Rights and Freedoms (MRF) leadership ("Dogan Paves the Way for New Leader"). "For the first time since MRF's establishment, its leader Ahmed Dogan takes on a very heavy burden: total purge of the territory around him and elimination of key figures in MRF's 20-year life since its establishment. He is doing it at a time when the party is isolated from allies and friends, has drawn upon itself much public ire, and is accused of all political sins. In his report to the 7th MRF conference late last year Dogan warned his men that serious changes were coming up in the leadership but noone believed that he would be forced to part with Kassim Dal and Yunal Lyutvi, and shed MRF's top economist Yordan Tsonev and Emel Etem. The new faces in the leadership is where Dogan will be looking to find the next party leader," the story goes.

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"Sega" comments that Dogan "is testing the party loyalty". It says that he is getting rid of the old guard, most of whom have been compromised by their presence in the government and in the party leadership, to give a chance to somebody new and unknown. The paper speculates on whether, may be, Dogan is preparing to wind down the party - which he had long been threatening to do, and says this is very much unlikely.

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In "24 Chassa", MRF's Prof. Lyudmil Georgiev says that the most likely successor of Dogan as MRF leader is Kassim Dal ("Kassim Dal: the MRF Leader in the Future"). On Monday Dogan did not mention Dal among his deputies and the leadership members were left with the impression that he is allowed a well-deserved break before he takes on bigger responsibilities than those of MRF deputy leader, Prof. Georgiev says.

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According to "Standard News", two of Dal's henchmen were elected to the MRF top leadership which goes to show that Dal himself is strengthening his positions. "What exactly is about to happen at MRF, only Dogan can say," the story says adding that Dogan is the only Bulgarian politician who knows the secret of always emerging stronger and with bigger electoral support after each government he participates in.

***

In a "24 Chassa" interview, Kamen Kostadinov of the MRF Central Bureau says "nobody feels demoted". He is adamant that the removal of some people from the leadership is not over poor performance but because MRF "is in a new situation". "A new political cycle starts for the party and it requires building a new team," he says. He goes on to dismiss allegations about clashes among various fractions in MRF: "MRF is united and consolidated and has its party vision".


"Sega" reports the latest poll by the MBMD pollsters ("Only Three Parties Make It into Parliament during Elections") saying that only GERB, the Bulgarian Socialist Party (BSP) and MRF get the 4 per cent (or more) needed for a party to win seats in Parliament.

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"Troud" quotes Democrats for Strong Bulgaria leader Ivan Kostov as saying that the government should catch the masterminds of the Impudent, a group of kidnappers which was busted recently in a large-scale operation of the law-enforcers. He also calls for catching the people in the high corridors of the Interior Ministry and the State Agency for National Security, who have provided umbrella for the Impudent and the likes of them. Kostov also said that GERB has so far been unable to handle the crisis.

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"Troud" writes about BSP's intention to challenge before the Constitutional Court two laws. One is the National Budget Act where Article 17 allows government ministers to cut back spending that has been approved by Parliament. The socialists' other objection is to the manner of adopting amendments to the Archive Fund Act.

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"24 Chassa" leads with a story saying that Parliament leader Tsetska Tsacheva has banned access to the Tsarska Bistritsa residence for tourists as of the end of December 2009. The ban is part of a moratorium that has been imposed on property owned by Simeon Saxe-Coburg-Gotha. Any operation and construction works is also prohibited until a special law is adopted about property that has been left by King Ferdinand and Boris III.

***

A front-page story in "Troud" says that 11 drug dealers and thieves were arrested in Sofia in the night between Tuesday and Wednesday. The operation started on Monday evening when 200 policemen searched 157 offices and bars known to be used by underworld figures. 22 crimes were solved during the operation, including seven robberies and five thefts.

***

"Sega" says that the government is introducing serious penalties in a bid to make its citizens use their rights. The story refers to amendments to the medical insurance legislation whereby Bulgarians with medical insurance will be unable to travel abroad unles they have taken out a European medical insurance card. This card certifies that its holder has regularly paid medical insurance and is entitled to free emergency medical aid. The ban on foreign travel by people without such a card has been in effect since December 18, 2009, but is not being observed.

ECONOMY

The budget is waiting for 7 billion from VAT, "24 Chassa" writes. The story is prompted by a remark by Prime Minister Boyko Borissov after a meeting with Israeli Prime Minister Benjamin Netanyahu when he said that he is very much likely to put to practice his advice about financial policies, including a reduction of VAT with immediate effect. The author observes that VAT brings in close to half of all tax revenue in the public purse and reducing it by 0.5 per cent means losing at least 135 million leva. The head of the parliamentary budget committee, Menda Stoyanova, comments that bringing down VAT this year is a risky step. Bozhidar Danev of the Bulgarian Industrial Association says that such a step this year would be dangerous because it could destabilize the macro-economic framework. According to Georgi Angelov of the Open Society Institute, further tax reforms by reducing VAT should follow bringing social insurance contributions to low enough levels. Currently social insurance contributions make up 30 per cent of the monthly wage.

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In "Douma", MP and former Economy Minister Peter Dimitrov says that bringing down VAT now is too adventurist. "Such measures are undertaken where there is surplus: you bring down a tax and cut back the surplus but none of the systems of the state suffers".

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"We are out of the crisis but nothing good follows from that," financier Emil Hursev says in a "Pari" interview. He expects "a much worse and much more danerous period" in the next three or four years: a period of depression which is worse than recession. "We will be witness of coercive debt collection, bankruptcies, final sales, closure of jobs. Exiting the crisis does not mean going back to the times of tempestuous economic development and a boom in lending. Bulgaria lacks resources to pour money in the economy and return it to the track of growth. Unlike Germany, we can't take out 1,000 billion euro," says Hursev.

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In a "Troud" interview MEP and former Foreign minister Ivailo Kalfin warns that ADIS, the state-owned company which runs the diplomatic properties in Bulgaria, is being driven to demise. He says that in the past three years the company was saved from financial troubles and was handed over to the new government with zero debts and 11 million leva in its account. What has happened since then is that everybody hired by the previous CEO has been sacked, one of the profit-making activities of the company - dealership - has been done with, and what probably comes next is spending the 11 million in the company accounts, declaring the company as financially troubled and starting the sale of assets, Kalfin says. "I will try to make sure this is not done in the dark," he adds.

BULGARIA - EU

The papers report the Tuesday hearing of EU Commissioner Rumiana Jeleva at the European Parliament's Development Committee. "Sega" ("MEPs Crucify Rumiana Jeleva") says that the Q&A session turned into a public lynch as several green, liberal and left MEPs asked Jeleva questions about her financial interests leaving in the background the question about her competence and priorities.

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 – Sofia, January 13, 2010

· Bulgaria's Foreign Minister Rumiana Jeleva, nominee for commissioner, said she will not withdraw her bid, even though her hearing at the European Parliament on Tuesday evening descended into disarray amidst claims that she was less than frank in declarations about her business affairs. Earlier in the day Prime Minister Boyko Borisov defended Jeleva, saying that she has fallen victim to a plot, concocted by the opposition Socialist and NDSV parties.

· Nikolay Marinov a.k.a The Small Margin has not appeared in the court during the hearing of the case against him. Krasimir and Nikolay Marinovi have been accused of initiating the killing of radio presenter Bobi Tsankov, over which Krasimir Marinov, a.k.a The Big Margin has been arrested. His brother was declared for national search. He was expected to be arrested today (Wednesday) at the hearing of the case, which has lasted for over three years.

· Two masked and armed attackers have robbed a unit of a bank in downtown Sofia. According to an employee in the bank office two men burst into the office, located in a block of flats. They threatened her with a gun, took about BGN 20 000 and run away in an unknown direction.An investigation into the case has been launched. There has been a surge in brazen robberies in the Bulgarian capital lately, which the prime minister has seen as a plot against his government.