Bulgarian press review, January 28, 2010

Press Review
Sofia, January 28

HOME SCENE

"Novinar" has interviewed Ilian Mihov, tipped as a future deputy prime minister, as saying that while he is a member of this government, changes in the currency board arrangement will not be on the agenda.

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All dailies report that Boyko Borissov's proposal for cabinet changes was approved: Nickolay Mladenov and Anyu Angelov are the new ministers, respectively of foreign affairs and defence. Mladenov promised dialogue, Angelov pledged continuity, "Novinar" reports. This is the first time Borissov has said the changes were forced by the resignation of foreign minister Rumiana Jeleva, "who did not do well" as a commissioner-designate, the dailies say.

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"Standart News" reports that deputy education minister Svetlana Lomeva was dismissed by Education Minister Sergei Ignatov, who was informed that Lomeva was not performing her duties. Allegedly, she did nothing to stop violations by the son of Sofia's ex-regional governor, Socialist Todor Modev. Ivan Modev is director of the Youth Programme at the Ministry.

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Borissov wants his ministers to name the culprits for the problems with the EU, "Sega" says. "Dnevnik" writes that the ministers will report at every cabinet meeting how much has been paid out under the ISPA pre-accession programme and the operational programmes.

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The daily stresses that the absorption of EU funding is one of the worst risks to the Bulgarian economy according to the convergence programme for the period until 2012. It is the document which will form a basis for discussion of Bulgaria's bid to join ERM 2 and the euro zone. Poor absorption carries a risk of lower growth and lower budget revenues. In contrast, good absorption would cause pressure on budget expenditures due to the required national co-financing. Still, the government prioritizes the absorption of EU funds, and the other priorities are the euro zone, a stable budget and high productivity.

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At least 20,000 tobacco growers are staging a protest on Thursday, Asen Kyuchoukov, Chairman of the National Association of Tobacco Growers, says in "Troud". The protest is concentrated in Gotse Delchev, Haskovo and Rousse. "We want the [agriculture] minister to keep his promise, and we expect to be paid immediately the same amount as last year as agreed," the leader says. "Novinar" warns that the protesters are expected to block the border with Romania at the Danube Bridge and roads at Haskovo, Svilengrad, Gotse Delchev and Purvomai.

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"Sega" reports that the Finance Ministry was shaken by the latest scandal over gambling tax. Deputy Prime Minister and Finance Minister Simeon Djankov said surprisingly on Wednesday that he is against a tax cut, although the Ministry's website has featured a bill of amendments to this effect for two weeks. Other ministries have been consulted about the bill and it is about to be introduced in the Council of Ministers. Gambling tax was raised two months ago after a monumental scandal, "Sega"says.

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"Douma" quotes Regional Development Minister Rosen Plevneliev as saying that the government will start awarding concessions for the entire water and sewerage sector in 2011 because there is no financing for water mains replacement from Operational Programme Environment. The term of the concession contracts may be between 20 and 35 years.

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"Monitor" quotes Borissov as saying that 200 million euro for the construction of the Danube Bridge may be lost due to poor management and the project's delay under former prime minister Sergei Stanishev. Borissov discussed this with his Romanian counterpart Emil Boc. The deadline is 2010 and Bulgaria will fail to use the EU money, Borissov said, reacting to Stanishev's criticism of the present government.

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The closure of small hospitals is a high social price to pay and has next to no effect, "Sega" says.

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Bulgarian military doctors have been offered monthly salaries of 36,000 dollars in Saudi Arabia, and between 15,000 and 20,000 dollars in Finland, Norway, Qatar and Oman, "Troud" says, quoting the director of the Military Medical Academy. General Stoyan Tonev says he received these offers within a week of meeting with the ambassadors of the five countries. At the same time general practitioners have not been paid their salaries for December yet.

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"Telegraph" reports that Mariana Todorova, the lawyer of gangland bosses, including the Marinov brothers, also known as the Marguins, nearly died in a fire after unidentified persons set alight a tire in front of her door.

THE ECONOMY

"24 Chassa" quotes central bank statistics showing that 5,282 people were issued loans exceeding 1 million leva in 2009. Of them, 113 were borrowed by individuals, who took out a total of 202 million leva, 1,780,000 leva on average. In three years these borrowers increased fourfold. However, the credit crunch became evident in the summer when no bank issued a loan of over 1 million leva to a household. Corporate loans over that amount increased slightly, by 102 in three months, to 5,169.

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"24 Chassa" assumes that the 11-day border blockade by Greek farmers has caused losses to both Bulgaria and Greece, while Turkey has gained from it. Since the border checkpoints at Koulata, Ilinden and Kapitan Petko Voivoda have been closed, the much liked Greek imports seabass and bream have been replaced with Turkish fish. Flower import has also been affected and roses are imported from the Netherlands only. "Zemya" reports that Brussels has threatened to penalize Greece. Spokesman Jonathan Todd is quoted as saying that the Greek authorities must notify the Commission and the EU countries of a road block which obstructs free movement and must provide detours, which did not happen.

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In "24 Chassa" economists from the Centre for Liberal Strategies, the Institute of Market Economics, Industry Watch and other think-tanks advise against a budget deficit. A deficit puts the entire economy at risk, pushes up interest rates, shrinks investments, and euro zone membership may be postponed. If the government has outstanding debts, even if they were inherited from the previous government, they must be paid at the expense of other sectors, which are most ineffective and reforms have not made progress. Confidence takes time to build and the prudence of the post-1997 period will be blown to the wind if the government takes the easy way out as Greece did, casting a doubt on the future of the euro, the economists argue. A balanced budget is the only way to ensure budget responsibility, investments and economic growth.

FOREIGN POLICY

"Troud" says that after the EU showed sympathy in recent years for the outstanding issue of the property of Bulgarian refugees from Eastern Thrace and Asia Minor, now Brussels appears likely to be able to guarantee a solution, and Bulgarian diplomats should seize the opportunity. The daily learned that the speedy preparation of the next meeting of the Bulgarian-Turkish commission on outstanding issues will be high on Boyko Borissov's agenda during his visit to Turkey later this week.

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Quoting "El Correo Gallego", "24 Chassa" writes about an emergency re-admission to hospital of Simeon Saxe-Coburg-Gotha's eldest son, Kardam, who had a car crash in August 2008 and was in a coma. Kardam, 47, has improved since starting growth hormone treatment. He was hospitalized for breathing difficulties and strong fever.

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 28, 2010

· 380 000 Bulgarians have lost their rights to free healthcare after changes in the health insurance laws. If people want to regain their rights to free healthcare they will now have to re-pay all their outstanding health insurance payments as well as any interest incurred. On Monday there will be more accurate information for those who have paid their health insurance since of amendments the law now.

· An 18-year-old boy has died in Pirogov Multiprofile Hospital for Active Treatment and Emergency Aid. 18-year-old A.V. has been admitted to the hospital at 22:05 last evening. The boy had been shot in the head and died 15 minutes later. The incident occurred in the region of Central Railway Station in Sofia.