fredag den 19. marts 2010

Bulgarian press review, March 19, 2010

Press Review
Sofia, March 19 (BTA)


The Government has started massive downsizing of state administration jobs, "Troud" reports on its front page. This week alone, some 50 people in the Education Ministry were made redundant (and important directors were summarily dismissed). The Defence Ministry will reportedly eliminate 500 tenured positions from its administration and another 300 or so from the Social Activities Directorate. At the Foreign Ministry, the staff size was reduced by 226 positions and diplomats returning after a tour abroad will be forced to take unpaid leave until a vacancy falls open at the head office in Sofia. The Transport Ministry has shed 336 jobs. As part of the anti-crisis measures, the Health Ministry is contemplating a merger of the Regional Health Centres (with some 500 employees) with the Regional Inspectorates for Public Health Protection and Control (with over 3,330 employees). The Finance Ministry is the top achiever in redundancies: 15 per cent or 98 tenured positions have been eliminated, "Troud" notes. The National Revenue Agency, too, has not been spared: at 7,335, tax officers are 641 fewer than before.

"This time in front of the National Theatre we will not be smoking or drinking water: we will be shouting to be heard as far away as in Europe," Ivan Slavov, Chairman of the Control Commission of the Interior Ministry Staff Trade Union Federation, told "Troud". "Why have the election campaign promises to the police vanished? Why are we used as a scare, showing people how we pin some guy to the ground? We are depoliticized, why do they get us involved in political games?" he asks. "Our colleagues in Sofia cope somehow: they moonlight as tile fixers after work. But policemen in the provinces are desperate. And they are armed. If anything happens, let the Prime Minister know that we, the trade unions, have not organized it. But we can't stop it, either," Savov notes.

"Bulgarska Armiya" quotes Defence Minister Anyu Angelov as saying that servicepersons' pay will not be allowed to drop.

The National Revenue Agency (NRA) is contemplating a relaxed regime for rescheduling corporate debts, "Dnevnik" learnt. The effective ordinance, dating from 2006, is exceedingly restrictive and the mechanism is practically unworkable for a large part of the companies which are experiencing difficulties due to the crisis. The effect of the hostile market conditions is compounded by the build-up of the State's debts to companies.

The NRA has registered a 600 million leva decline in revenue collection since the beginning of the year compared to the same period of 2009, NRA Executive Director Krassimir Stefanov said, quoted in the top story of "Douma." The NRA has 6,500 million leva uncollected receivables from debtors that have built up over the years. Stefanov said that for January 2010 alone, the employment contracts registered at his Agency were 100,000 fewer than in January 2009. He sees this as an indication of the loss of 100 jobs.

Bulgaria ranks third among the countries of Southeastern Europe as an attractive destination of foreign direct investment, Ernst & Young found in a survey of 203 business leaders of international companies at the end of 2009, "Klassa" reports on its front page. The most attractive invesment destination in the region is Croatia, with 40 per cent of the respondents, followed by Romania, 39 per cent, Bulgaria, 34 per cent, and Serbia, 33 per cent. As many as 54 per cent of the investors are positive that Bulgaria can increase its attractiveness over the next three years. According to Ernst & Young Bulgaria Country Managing Partner John Mystakidis, Bulgaria is probably the only EU Member State together with Cyrpus which meets all Maastricht criteria and this is an excellent recommendation for business, especially after the raging fiscal crisis in Greece.

* * *

"I like [Finance Minister] Simeon Djankov's ideas, I support his views about fiscal stability and reforms; the problem is that especially recently he hasn't been receiving the necessary support," former finance minister Milen Velchev says in a "Troud" interview. He also approves that an increase of tax rates is not proposed, the idea not to assume new obligations before paying the old ones, and the temporary withdrawal of civil servants' privileges. Velchev favours the idea of the Bulgarian National Bank issuing bonds for development of the international markets, so as to provide cheaper loans for business.

"At present, pensioners have an absolutely unfair competitive advantage on the labour market over people who are not of retirement age," Center for Liberal Strategies Programme Director Georgi Ganev says in a "Klassa" interview. He also argues that the fact that civil servants so far have not been paying their share of social and health insurance contributions but taxpayers have had to pay it for them is food for thought.

"I wouldn't stpport at least half of the 28 proposals cited in the press," economist Georgi Angelov, who allegedly came up with the proposals, told "Troud". Under the heading "If We Go Bankrupt, the Measures Will Seem All Too Lenient," he notes that the politically easier approach would be to cut all public spending by the same percentage. If the budget deficit is 1,000 million leva, everybody will be told to reduce their expenditures by 4-5 per cent, he reasons. "If we are to reform the administration, let us introduce new incentives for civil servants: give them bonuses when they do their job; if they don't, fine them and fire them," he suggests. He has an idea that a market should be sought for the carbon emissions that the other countries sell. In his opinion, the Government must take a harder line because "since the elections everybody who has started a protest has got some money. Which encourages the rest to demand as well." "Under trade union pressure, all reforms have been halted and now they will have to pay a ten-fold larger price," Angelov argues.

* * *

"The power-holders banned GMOs under public pressure," "Sega" writes on its front page. "GERB took a U-turn on the matter after the resolute intervention of Prime Minister Borissov," the daily notes. "After three months of stormy debate in Parliament, in the media and after street protests, the MPs of GERB and Ataka yesterday gave up all radical revisions of the Genetically Modified Organisms Act. The parliamentary majroity banned GMO cultivation and experiments for scientific purposes in the protected areas and within 30 km from them. The GMO Act, which was passed conclusively, prohibited the cultivation of GMOs within 7 km from organically farmed areas and within 10 km from beehives. At the opening of the plenary sitting, the ruling party also withdrew its motion on imposition of a five-year moratorium on GMOs within Bulgarian territory."

* * *

"Bribes in the judicial system are codenamed as tropical fruits," Deputy Prime Minister Tsvetan Tsvetanov said on Thursday, cited on the "Monitor" front page. The magistrates would not mention any money and bribes when talking on their mobile phones. All they would say is that they wanted a specific quantity of oranges or bananas. Judges know perfectly well how to avoid being implicated in corruption.

* * *

Tomislav Donchev, who was elected minister in charge of EU funding management, told "Standart News" that 24 per cent of the resources from the EU have been contracted and 3.2 per cent have been paid. He believes that the bureacratic burden should be relieved without loosening controls.


* * *

"South Stream will be the only gas pipeline that will be built," Prof. Gerhard Mangott, energy security expert and political scientist of Innsbruck University, told "Novinar" in an interview.

"Troud" carries an article by Turkish Foreign Minister Ahmet Davutoglu entitled "Bulgaria and Turkey Have Common Past and Future".

CULTURE

"The most expensive performing art in Bulgaria is operate. The largest money-maker, though, is theatre," "Troud" writes in its analysis. There are 42 state-owned theatres in Bulgaria, employing 1,883 people. Last year the Government spent more than 24 million leva on their labour costs and utility expenses. Theatres earned about of quarter of their keep by ticket sales: 5.8 million leva, with an average price per admission of 5.95 leva.

* * *

Most papers report that the 6th World Meeting of Bulgarian Media, initiated and organized by the Bulgarian News Agency (BTA) and the Association of Bulgarian Media Worldwide, will take place in Vienna between May 16 and 20, 2010. The meeting will focus on the evolution of the terms "East" and "West" and the new East-West relationship in economic, social, cultural and media terms.

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 – March 19, 2010

· Motives for the impeachment of the Bulgarian President Georgi Parvanov are ready, the speaker of the National Assembly Tsetska Tsacheva told journalists, Focus News Agency reporter informs. Tsacheva noted the parties reached and agreement on the motives for President’s impeachment. The speaker of the National Assembly did not specify the motives for the impeachment.

· Finance Minister Simeon Djankov will familiarize the National Assembly with the government's anti-crisis package after the social partners approve it and the Council of Ministers adopts it. Djankov said that a team of representatives of most ministries was working on additional measures in support of Bulgarian businesses and the people. The measures are expected to be drawn up by the end of this week. They are to be discussed with employers and trade unions in the National Council of Tripartite Cooperation next Monday. After the government discusses the package, the Finance Minister will familiarize the National Assembly with it.


· Bulgarian Deputy Prime Minister and Interior Minister Tsvetan Tsvetanov and Greek Citizens Protection Minister Mihalis Chrysohoidis Friday inaugurated a Contact Centre for Police and Customs Cooperation at the Promachonas border crossing, on Bulgaria's border with Greece. The sides signed the rules of organization and procedure for the Centre, which will have a Greek and a Bulgarian manager. The Centre will allow Bulgarian and Greek border police and customs officials to cooperate in real time and to solve problems related to transborder crime.

· The design of the Bulgarian part of the Nabucco gas pipeline should be ready in late 2011. According to the final report on the pipeline route, the Bulgarian section will be 412 km, said Kirkor Topakbashiyan, head of Marketing and Commercial Operations Department of Chimcomplecт Engineering which is the local engineer for the Nabucco project. All details of the Bulgarian route will be clear in October or November this year. The pipeline is scheduled to be commissioned in late 2014 or early 2015.

torsdag den 18. marts 2010

Bulgarian press review, March 18, 2010

Press Review
Sofia, March 18 (BTA)


HOME SCENE

"Troud" writes that the Finance Ministry denies to have drafted the 28 anti-crisis measures, publicized by the trade unions. However, the paper cites Konstantin Trenchev, leader of the Podkrepa Labour Confederation, as saying that the draft package of measures originates from the Finance Ministry. He specifies that they have received it from an "honest employee". Prime Minister Boyko Borissov was allegedly very angry because he insisted that the draft document be not discussed in public before being approved by him.

It is not the Finance Ministry but economist Georgi Angelov, who is believed to be the author of the 28 horrible anti-crisis measures, which mounted tension in the country. "24 Chassa" writes this referring to Podkrepa Vice President Dimiter Manolov. The five most sever draft measures envisage the following: depriving working pensioners of their pensions or halving their size; reducing the period of paid maternity leave to 225 days; imposing income tax on pensions above 136 leva; imposing tax on the social insurance contributions; and introducing mandatory unpaid leave.

The "Troud" paper quotes Bulgarian Socialist Party's Anton Koutev as saying that the Government's anti-crisis measures are unprecedented and would not settle the problems. In his view it is not the expenditures that are big in the country but, rather, its revenues are small. Ataka MP Ventsislav Lakov describes the expenditure plan as "balanced and feasible". He voices the idea of introducing taxes for expensive yachts and limousines. Blue Coalition Co-Chair and Democrats for Strong Bulgaria leader Ivan Kostov describes the measures as "suicidal policy" adding that this is not the right action in the time of crisis. Yane Yanev, leader of Order, Lawfulness, Justice (OLJ), threatens that unless Deputy Prime Minister and Finance Minister Simeon Djankov be relieved of his duties in the government within several weeks, OLJ will protest in front of the Finance Ministry until Djankov himself resigns.

The Government's anti-crisis measures are categorically unacceptable, as they are proposed, Movement for Rights and Freedoms (MRF) MP Hasan Ademov comments.

These measures are not based on economic grounds but on panic, says Bozhidar Danev, President of the Bulgarian Industrial Association. They are indicative of the fact that Bulgaria is gradually falling into the trap of the double deficit: the one of the trade balance and the one of the current account. The first two months of the year witnessed increasing expenditures and falling revenues. If the country falls into this economic trap, the recession will deepen and there will be a risk of change of the key macroeconomic parameters, Danev warns.

"Troud" runs a commentary by political analyst Kuncho Stoichev, who says that reducing of maternity benefits or fining working pensioners does not constitute a reform. The real reform involves cutting expenditures on inefficient systems and structures maintained by the incumbents. The reform means to fill in the numerous holes through which tax-payers' money leak due to their inefficient and, often, criminal management. In other words, the reform entails harder work on the part of the incumbents and the administration at considerably lower expenditures.

"The confidence in the Cabinet allows the implementation of unpopular reforms." "Klassa" runs an interview with Vassil Tonchev, Director of the Sova Haris Agency, under this headline. Tonchev says that the situation in the country is very serious. The big confidence placed with the incumbents makes it possible to overcome easier the economic crisis. The Prime Minister should avail himself of that opportunity, according to him.

Whole guilds are planning to stage protests on Saturday against the anti-crisis measures, contemplated by the Cabinet. Protests of police officers will be staged in front of the Ivan Vazov National Theatre. They will be joined by military, security and even tax officers. Over 5,000 people, including mothers and pensioners, are expected to gather at the protest.

The strikes push Bulgaria towards the Greek scenario, says Menda Stoyanova, Chair of the National Assembly Budgetary and Finance Committee, cited by "Standart News". If people go on strikes and insist on payments higher than the budgeted ones, Bulgaria may have the same problems as Greece. Everyone sees that there are problems with the revenue part of the budget. This is why expenditures should not be exceeded and even ways should be sought to cut them, says she.

***

The Interior Minister wants that the court enters the fight against crime, "Sega" writes. Speaking at a conference, Interior Ministry Tsvetan Tsvetanov said that there is political will, but no judicial will to deal with organized crime and corruption. In his view crime should be combatted by all institutions, the court inclusive.

***

"I do not think there is a war between the Interior Ministry and the court," Supreme Administrative Court President Konstantin Penchev says in an interview for "24 Chassa". "Besides, I am categorically against such conflicts because they undermine the prestige of all parties involved." Power is conditionally divided into three branches: legislative, executive and judiciary. Each has its field of actions and the failures of one of them may not give dividends to the other. This is why, it is inadmissible that they quarrel and criticise one another as every conflict undermines people's confidence, Penchev also says.

***

"24 Chassa" publishes the results of a March poll carried out by the National Public Opinion Centre. The poll shows that the scandal with the published transcript of the talk between President Georgi Purvanov and Finance Minister Djankov has affected the popularity rating of both of them. Yet, the popularity of Prime Minister Boyko Borissov and his deputy Tsvetan Tsvetanov has increased.

On March 5 the President's Office published the verbatim record from a meeting between the President and Finance Minister Simeon Djankov. The two met at Djankov's initiative and were expected to iron out frictions resulting from Djankov's participation in a TV show and controversial remarks that were exchanged there about the President. GERB argue that Djankov was not aware his conversation with the President was recorded and was not asked for permission to make the recording public, which they say was a violation of the Constitution. GERB has said that this week signatures will start to be collected on a motion to impeach President Georgi Purvanov.

The poll, published by "24 Chassa" shows that the approval of the Cabinet has dropped by 6 per cent. However, Borissov's rating remains unchanged: he keeps on being at the top of the ten politicians enjoying highest approval with 68 per cent. He is followed by his deputy Tsvetanov with 66 per cent. According to the poll, if elections were held now, GERB would have won them by 36 per cent.

BULGARIA - EU

The European Commission backed the Bulgarian Government's plans to tighten the belts, "Troud" writes. The Commission says that if the economic growth and the tax revenues are below the target, this would be compensated by the financial restrictions. The Commission reminds the Cabinet, however, that, apart from economizing, it should also implement structural reforms.

***

"Sega" reports about a letter from DG Agriculture and Rural Development notifying Bulgaria that it will have to pay about 50 million leva for violations in the 2008 single area direct payment campaign for farmers. Only a month ago Brussels said that Bulgaria will be fined by 40 million leva for the payments made in 2007. The fine is most likely to be deducted from the nearly 1,000 million leva that are to be extended in subsidies.

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 – March 18, 2010

· The Bulgarian parliament approved Thursday the appointment of a minister with responsibility for stamping out corruption in the use of EU funds. Tomislav Donchev, 36, is a former director of the Sofia branch of George Soros' Open Society Institute and has worked extensively in the area of EU project management and consulting. Amid concern over corruption Brussels froze 825 million euros in pre-accession aid for Bulgaria in 2008 and subsequently stripped Bulgaria of 200 million euros of that money. Last month, Sofia obtained permission from Brussels to apply for some 6.4 billion euros of post-accession aid available between 2007 and 2013. Nevertheless, a parliamentary commission recently found that the country risked losing most of that aid because Bulgaria has so far used just 1.3 percent of the total of 15 billion euros of pre- and post-accession aid. A member of the ruling right-wing GERB party, Donchev was elected mayor of the small town of Gabrovo in 2007, where he managed to win Brussels' approval for a water distribution project worth 63 million euros (86 million dollars).
· Bulgarian MPs unanimously passed the leading proposal moved by MP Lachezar Toshev for ban on cultivation and release of genetically modified organisms (GMO) in protected areas, Focus News Agency reporter announced.
· Bulgaria, Latvia and Romania are the catching-up countries in the EU in terms of innovation performance, with performance levels significantly below the EU average. However, all three countries are rapidly closing their gap to the average performance level of the EU, and Bulgaria and Romania have been improving their performance the fastest of all Member States.This observation is contained in a survey on innovation performance in the EU, which was presented on Wednesday by Antonio Tajani, European Commission Vice President responsible for Industry and Entrepreneurship, and by Maire Geoghegan-Quinn, European Commissioner for Research, Innovation and Science.

· The European Commission urged Bulgaria to pursue “strict” fiscal policies that will compensate for “slightly favorable assumptions on growth and revenue collection”. Prime Minister Boiko Borissov’s government envisages economic growth of 0.3 percent this year after last year’s contraction of 5.1 percent. The government ran up a deficit of 500 million lev ($350 million) in January and projects the gap will widen in February and March as it completes outstanding payments on infrastructure projects and other public orders.

onsdag den 17. marts 2010

Bulgarian Press Review, March 17, 2010

Press Review
Sofia, March 17 (BTA)


THE HOME SCENE

"Troud" leads with a story ("Anti-Crisis Axe for All") reporting of contemplated government measures to bring down the budget deficit. Among these is to start charging an income tax (of 10 per cent) before payment of social and health insurance; and start charging a tax of 10 per cent for all pensions bigger than 136 leva. The plan sends to forced two-weekly unpaid leave budget-paid emplyees; slashes by half the paid maternity entitlement (from the current 225 days) of young mothers.

"Standard News", too, writes about this ("Mothers' Money Cut Down"). The paper explains also that it is one of 37 anti-crisis measures that the Finance Minister will present to employers and unions at a discussion on Friday.

The measures' authors in the Finance Ministry said that these are difficult days and that the draft copy which the unions have, is only one possibility. "Nothing will go through in Parliament before it is discussed by the tripartite council," the story says quoting Labour Minister Totyu Mladenov. Mladenov was reportedly told by Prime Minister Boyko Borissov that he wants to hear out people's opinion before he makes a decision. "But one thing I can guarantee: the money that is paid to policemen and the military will remain unchanged," said Borissov.

"Sega" writes in a front-page story that the government's anti-crisis plan will be a severe blow on all incomes. The story says that the plan has 28 proposed measures and two parts: one for reducing the costs of the state administratuin and one for increasing the recipts from the population by cutting back on a number of social perks. The plan was reportedly prepared by a working group set up by the Prime Minister.

In "Troud", the deputy leader of the influential Podkrepa Labour Confederation, Dimiter Manolov, is quoted as saying that the plan is "imbecile" and that it is aimed at the low-income population groups. In "Zemya", Manolov is quoted as saying that the measures are "terrifying". In "Douma", the proposed measures are described as "monstrous".

***

In a "Troud" interview, former Foreign Minister and former deputy head of the intelligence service, Lyuben Gotsev, says the government is beginning to have trouble - "serious trouble with some things," he says. "It will be hard for Mr Borissov from now on. How long the downturn will last and whether next winter will be more difficult, is for the economic analysts to say. On the other hand, we shouldn't forget that the Wolrd Bank and the IMF have their way to pull the strings," says Gotsev. He is supportive of the idea for opening up the economic files from the transition - "if they exist".

***

Politican analyst Ognyan Minchev says in "Troud" that he is optimistic about the opening of the communist-era secret files - but the files are economic and political and one cannot open the former without opening the latter. "I see hope in the relatively firm position of the government and most of all of Deputy Prime Minister Tsvetan Tsvetanov, in respect of organized crime, as well as the conflict with the government and the GERB majority, pushed through by President [Georgi] Purvanov."

Minchev goes on to say that the President is an indicator of the olygarchic interest in politics. "The more this conflict picks up intensity, the bigger indications we are going to have that GERB is determined to cross the line of olygarchic control."

Minchev says further that the economic shape of the country gives a reason for concern and yet a political crisis and early elections are unlikely. "Sooner or later, there will be a GERB alternarive but Purvanov will not be the one to take the helm of it."

***

In "Dnevnik", social analyst Zhivko Georgiev says that some people in GERB have emerged as spokespersons of an interest which does not match fully the vision of Prime Minister Borissov. He mentions Interior Minister Tsvetan Tsvetanov as one example. Georgiev believes that Finance Minister Simeon Djankov is the first candidate for the role of a safety fuse about to blow. "1997 was worse economy-wise but at least [then Prime minister] Ivan Kostov had a clear vision of what he was doing and tangible instruments: the currency board combined with political will and a strong public consensus about what exactly was to be done. At the moment the government is totally helpless," says Georgiev.

ECONOMY

Before the end of March Bulgaria is beginning talks with Gazprom for a new contract, Bulgargaz CEO Dimiter Gogov tells "Klassa". He adds that this year, too, Bulgaria will be unable to use up the whole requested amount of natural gas due to the economic stagnation.

***

"Monitor" reports that Allianz Bulgaria and the person who controls it, Dimiter Zhelev, have syphoned 200 million leva from insurance in the past 5 years. They did that through insurance policies of state-owned energy companies for a single insurer: the Energiya insurance company. Allianz controls half of the Energiya shares. The said companies chose Energiya as their insurere with no tender as required by the Public Procurement Act. They paid to Energiya premiums for a total 311 million leva. Only 22.7 million leva were paid in compensations during the same period.

***

Yanko Georgiev of the management of Bulgaria Air will be the new CEO of the national air carrier, "Standard News" reports. The long-serving CEO, Dimiter Pavlov, was relieved of his duties last Friday.

***

"Pari" warns that without a clear idea about the mechanism whereby the government will sell residual shares in companies, the whole operation which is meant to rescue the budget, may fail.

***

"24 Chassa" has a front-page story about a major knitwear producer, Nitex of Dospat, and how it is struggling with the crisis. Instead of their full wages, the Nitex workers last month were paid only 35 leva and a box of sweaters each, to sell and supplement their meagre wage. Before the crisis they used to make 400-500 leva a month.


FOREIGN POLICY

"Troud" has a report on the Moscow visit of Parliament Chair Tsetska Tsacheva and her talks with the Speaker of the Russian State Duma, Boris Gryzlov. It says that the possibility of deployment of parts of the US missle defence system in Bulgaria were high on the agenda. Gryzlov is quoted as saying that Russia is not going to sign the nuclear weapons reduction agreement unless it is paired up with the missle defence system. The paper comments that these words can be considered a clear message from Prime Minister Vladimir Putin because Gryzlov is a senior member of the ruling party in Russia.

In his capacity as chairman of the United Russia party, Gryzlov offered his party's cooperation and handed to Tsetska Tsacheva a draft agreement between the two parties. Tsacheva says that this is not going to be ideological partnership but interaction between two ruling political parties.

***

"It seems that the power-holders in Skopje don't have enough problems with Greece and are consistently working to have more problems, this time with Bulgaria," "Troud" writes. The Macedonian government reportedly plans to insist that the European Framework Convention for the Protection of National Minorities be included in a new base bilateral agreement that would put Bulgaria under an obligation to recognize a Macedonian minority.

***

The Macedonian Stock Exchange hopes for Bulgarian investors, CEO Ivan Shteriev says in "Dnevnik". On Thursday, Sofia is hosting Day of Macedonian capital market and Macedonian issuers.

***

Meeting with Vietnam's Deputy Prime Minister Pham Gia Khiem in Vietnam, Bulgarian Deputy Foreign Minister Marin Raikov suggested that Bulgaria's ports of Varna and Bourgas start to be used as a doorway to Europe for Vietnamese exports, "24 Chassa" reports.

The story further reports that the Bulgarian side raised the issue of scrapping visa requirements for business people.


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 – March 17, 2010

· The government approved a national action plan to fully implement the provisions of the acquis of Schengen rights and the removal of internal border controls. Implementation of the measures of the plan will provide the successful preparation of Bulgaria for accession to the Schengen area in 2011, which our national goal is.



· The Government cancelled Wednesday a last week decision to increase health insurance contributions from 8 per cent to 10 per cent, the government information service said. Wednesday's decision follows a broad discussion and a careful consideration of the effects of the possible hike on all parties involved.

· Interior Minister Tsvetan Tsvetanov will take part in the protest of the police on Saturday, a reporter of FOCUS News Agency announced. Minister Tsvetanov explained to journalists that he has always supported the "peers", regardless of the assessment that they would gave emotionally and largely objective as requested, however the Minister must be supportive of their problems. Realities in the country should be taken into account, because there is no Minister of the Interior who doesn’t want the police to receive more money and to work in better conditions.

tirsdag den 16. marts 2010

Bulgarian press review, March 16, 2010

Press Review
Sofia, March 16 (BTA)


HOME SCENE

"Boyko: I Sent Djankov to President with Flag of Truce" is the headline of a "Troud" item which says that Prime Minister Boyko Borissov on Monday tried to distance himself from the impeachment of President Georgi Purvanov, referring the problem to Parliament and the Constitutional Court. "It's not my move now, this is not my problem. My move was played in a very clear way by sending [Finance] Minister [Simeon] Djankov to call on the President with a flag of truce," Borissov is quoted as saying. However, Purvanov does not want this page to be closed, the prime minister said at a joint news conference with European Commissioner Kristalina Georgieva. Georgieva also took Djankov's side and said that in the conditions of a global financial crisis "we are not the only ones dancing tango : two steps ahead, one step back."

* * *
"Purvanov's impeachment is not the cause of GERB but of [Democrats for Strong Bulgaria leader] Ivan Kostov," political scientist Tatyana Bouroudjieva says in an interview given to "Novinar." In her view, the collection of MPs' signatures on a motion to impeach the head of state is "an act of symbolic personal commitment on the part of the respective persons to a common cause. GERB is creating this communion of a cause at the moment. It is another question that this is not the cause of GERB but rather of the old UDF [Union of Democratic Forces], of Ivan Kostov who practically used to tolerate the opposition criticism Purvanov levelled at him as leader of the BSP [Bulgarian Socialist Party] at the time. It seems that this is a very personal, painful moment Kostov has not been through with yet. In the person of Purvanov, the BSP achieved something that is difficult to forgive. This is the cause of Kostov and of DSB, not even of the UDF. At the moment, GERB is behaving like a party that operates under other people's dictate," Bouroudjieva says.

* * *

"Purvanov: Check the Donors of Family-owned Foundations," "Novinar" says in a headline. Responding to PM Borissov's suggestion about a check on oligarchs, President Purvanov called for a probe of those well-off Bulgarians who benefited from privatization during the transition years and made considerable donations to major family-owned foundations of Bulgarian politicians. Commenting on Interior Minister Tsvetan Tsvetanov's statement that a letter would be sent to the Presidency requesting the names of oligarchs to which the law-enforcement authorities have "a special attitude," Purvanov said the minister should know that the presidential institution was not in possession of such information.

* * *

"24 Chassa" carries an interview with Prof. Dimiter Yonchev, a security expert and one of the architects of the State Agency for National Security (SANS), headlined "I Have Written Off SANS after the Scandals". In Yonchev's words, a national security strategy should have been adopted first to define the place and role of the agency, as well as its relationship with the other components of national security and then establish the agency itself. Anyway, now the agency has been gradually finding its identity and emerges from the state of information closedness, he notes. It tries to resolve its problems and most probably has future.

* * *

"24 Chassa" comments on an opinion poll the MBMD agency held in Sofia and Bulgaria's big cities last weekend which shows that the cabinet wins the debate with the head of state. PM Borissov (approved by 58 per cent) and Interior Minister
Tsvetanov (56 per cent) enjoy considerably higher ratings than President Purvanov (40 per cent). However, the contemplated impeachment procedure is supported by 34 per cent of respondents while 51 per cent are against it.

ECONOMY

"Government Starts Urgent Privatization," "Sega" says on it front page. The government will accelerate the privatization of all state-owned minority shares held in companies. The Ministry of Economy, Energy and Tourism will consolidate the 55 state-owned minority shares in a holding company which will quote its own shares on the Bulgarian Stock Exchange, Finance Minister Simeon Djankov said on Monday. In parallel to it there will be a process of classical privatization implemented through competitions and tenders. The purpose of the cabinet is to revive the stock market and ensure solid contributions to the Silver Fund [a state fund guaranteeing stability to the public pension system]; by law, 90 per cent of all privatization proceeds go into this Fund. This will stabilize the fiscal reserve, too, as the Silver Fund is part of it.

* * *

Referring to PM Borissov, "Troud" reports that in February the government paid 650 million leva to companies in settlement of its debts, promising to pay another 250 million leva to the business. Borissov apologized to people "locally" that he is faced by a fait accompli and has got to pay to "circles and rings of companies" because there are contracts concluded with them. Otherwise the companies to which the government is indebted may sue him, he said. According to Borissov, in July the national budget will be updated. He described the millions of leva that had been poured into energy projects as "crazy, criminal waste" citing as an example the Belene N-plant project and the Tsankov Kamuk Dam.

* * *

"24 Chassa" writes that as of April, 150,000 civil servants, including policeman, the military and civil service clerks, will have to pay a share of their health and social insurance contributions, all of which have so far been covered by the state. On Monday the cabinet gave up the idea of increasing the portion of the health insurance contribution paid by those employed in the private sector from 8 to 10 per cent. "Everybody should be equal before the law. It is not fair to make some people pay while others do not," Djankov is quoted as saying. According to estimates of the Finance Ministry, the remuneration of public sector employees will drop by 12 per cent as a result of making them pay social and health insurance contributions. In this way the government is expected to economize 150 million leva.

* * *

"Let us make clear the foggy part of the health care reform," "Troud" says. A reform consists of two parts: the way in which the money is collected and the way in which it is expended. "You cannot get the right answer about revenues when you have not the right answer about expenditures. Now the incumbents are trying to focus on the way of collecting the money and how much more they could collect to spend it on an unreformed second part, i.e. to cover unreformed expenses. The second part of the reform should be ready first, i.e. the foggy part of it should be made clear, and then the incumbents can go and tell people: we need that amount of money for the reformed part and divided by the number of working people, this means that they have to pay such and such insurance contributions."

* * *

"GERB does not have a vision about pulling out of the crisis," UDF leader Martin Dimitrov says in an interview for "Sega." In his words, "raising the health insurance contribution rate is insane." "It is like adding fuel to the fire," he says. According to Dimitrov, 2010 will be a very difficult year, there will be a boom of bankruptcies and unemployment will increase. The UDF proposes to reduce tax and social insurance rates and believes that the state should help the business to survive instead of paying more and more benefits to the jobless and the poor.

* * *

"The number of civil servants should be substantially downsized," Menda Stoyanova MP of GERB who chairs the Budgetary and Finance Committee of the National Assembly, says in an interview given to "Monitor." In her view, the anticrisis measures suggested by the UDF are unacceptable at the moment because tax and social insurance rates are among the lowest in Europe and the world. "The budget and the currency board arrangement do not allow us to restrict further the revenue side of the budget," Stoyanova says. The economy has not registered and is not expected to register any tangible growth, therefore there will be nothing with which to compensate a reduction of taxes, she says.

* * *

Interviewed for "Troud," former finance minister Plamen Oresharski MP of Coalition for Bulgaria says that Bulgaria is threatened by a Greek scenario of financial instability but is still far away from it and that he believes the government will find a way to prevent it. His commendation is that the cabinet should be in no hurry to spend money from the fiscal reserve. If the fiscal reserve is expended and revenue collectability is not improved, the government will have to look for another source of money. And if this source is an arrangement with the International Monetary Fund, Bulgaria will not be allowed to enter "the waiting room" of the Eurozone [EMR2].

* * *

"We Are Not Well but We Are Not Greece Either," reads the headline of an article in "Sega." According to its author, there may be a wave of protests in Bulgaria but only because the government "organizes them, no matter how absurd this may sound." The Interior Ministry employees are going to stage protests on Saturday, followed by the employees of the judiciary and civil servants because their incomes will be cut down as the state refuses to cover their social insurances any more. However, the author describes the problem of social insurance contributions and who pays them, of incomes and of who has or has not the right to protest as a minor problem, saying that the big problem is that the government cannot implement its budget at the moment. "Now it does not have money for health care, tomorrow it will lack money for education. And will prompt protests again. And finally nobody will pay the state anything. As it is in Greece now. But even then we will not be like them. We will not protest, we will stop using the services of the state."

BULGARIA - EU

In the Justice and Home Affairs section of the European Commission interim report on Bulgaria's progress, expected to be published on Friday, the government is praised for its political will to combat organized crime while the justice system is criticized for the lack of convictions. The judiciary is reproached for the poor results in fighting high-level corruption and organized crime, but on the other hand the efforts of the Interior Ministry to cope with the underworld are described in positive terms.
In an interview given to "Standart News" Justice Minister Margarita Popova explains that the European Commission interim reports register facts and outline trends. Assessment phrases are rare in them and that is why they are particularly important, she says. "The reports are brief but very helpful to check whether one is moving in the right direction at the right speed. They can easily be subjected to a comparative analysis and encourage constancy," Popova says. In her words, by talking with its European partners "in one language" help reach the same conclusions about what has been accomplished and what has not.


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 – March 16, 2010

· The Bulgarian MEPs from all political groups will ask next week for a meeting with European Enlargement Commissioner Stefan Fule to present him with the cases of human rights infringement in the Republic of Macedonia, in which citizens with Bulgarian identity are involved, in particular the case with Spaska Mitrova, the press service of the socialists in the European Parliament announced. The Bulgarian MEPs plan to focus on the violation of the Copenhagen criteria in the area of human rights in an EU candidate country. Living in RM with a Bulgarian passport Spaska Mitrova lost the custody of her baby girl to her former Macedonian husband after a ruling of the Macedonian Court in the town of Gevgelia.

· Turkish Foreign Minister Ahmet Davutoglu will visit Bulgaria on March 18-19, Foreign Ministry Spokesperson Vessela Cherneva said at a regular briefing on Tuesday. Davutoglu will meet Foreign Minister Nickolay Mladenov, President Georgi Purvanov, National Assembly Chair Tsetska Tsacheva and Prime Minister Boyko Borissov.

· Speaking at the opening of a three-day conference on counter corruption best practices for Europe, US Ambassador here James B. Warlick commended the Bulgarian Government for its efforts to fight corruption and organized crime. The three-day conference is arranged by the George C. Marshall European Center for Security Studies, with the support of the US Embassy in Sofia. Ambassador Warlick stressed in his opening speech that "the work that is going on in Bulgaria today is brave," adding that "this government has taken some important, huge steps in the area of law enforcement to arrest key figures in the organized crime."

· The Supreme Cassation Prosecution Office unit specialized in investigating abuse of EU funds submitted 60 indictments to court since the start of 2010, the unit's head, prosecutor Angelina Mitova, told a news conference here on Tuesday. Twenty-one sentences have come into effect. In comparison, some 125 indictments were submitted in 2009, with 28 effective sentences. Eighty-five case files were suspended, added prosecutor Mitova. The largest number of irregularities were detected under the single area payment scheme.

mandag den 8. marts 2010

Bulgarian Press Review, March 8, 2010

Press Review
Sofia, March 8 (BTA)


HOME SCENE

The national dailies give prominence to the scandal between President Georgi Purvanov and the Government. Last Friday Purvanov received Finance Minister Simeon Djankov at the latter's request in connection with Djankov's controversial statement in a TV entertainment show on March 1 regarding the President's property status. In the show on Nova Television, the anchors asked Djankov whether he had any evidence to prove his earlier claim that the President was "a young billionaire" and that he owned upscale estates in the US, Europe and Dubai. The Finance Minister denied recollecting having ever said anything of the kind. "Still, is he [Purvanov] or isn't he a young billionaire?" the anchors insisted. "Definitely, he isn't young," Djankov said.

"Standart News" publishes an interview with Prime Minister Boyko Borissov under the headline "Purvanov Is Young But He Is Not a Billionaire". According to Borissov, if someone feels insulted from another person's statement he should sue this person in court rather than attacking the Government's policy. "With all our actions we have shown that we do not seek a conflict," says Borissov. "When we formed a Government of the minority, I relied on the statesmanlike attitude of the party leaders and of the President, inclusive, because I have taken up the whole risk of leading the country out of the crisis. Now it turns out that I have to take over all the liabilities of the three-party coalition, masterminded by him [Purvanov]," the Prime Minister also says in the interview.

According to "24 Chassa", in the first hours after the bursting out of the scandal with the transcript of the talk between President Georgi Purvanov and Finance Minister Simeon Djankov, Prime Minister Boyko Borissov said he is ready to tender his resignation, if President Georgi Purvanov makes an analogous move. Such scenario was reportedly discussed in a very closed circle. The paper further refers to what are described as well informed sources as saying that the Prime Minister even appealed for "such fair play" ending in early elections in a telephone conversation with Purvanov. At a discussion held Sunday, however, GERB decided that the triggering of early elections should not be on the agenda now.

"Troud" refers to magistrates as saying that, if the Constitutional Court ends the term of President Purvanov, there will be no early presidential elections. It would be Vice President Angel Marin that would take up his duties for the remaining two years of the incumbent President's term of office. This clarification is provided by former Constitutional Court members Pencho Penev and Dimiter Gochev. The two comment on the case with the publicized transcript and the incumbent accusations that, by doing so, the President violated Article 32, Paragraph 2 of the Constitution prohibiting the recording of persons without their consent. If the Constitutional Court is petitioned on the matter, it will have to clarify what the nature of the talk held was and whether legal or moral requirements for observing of confidentiality could be associated with it.

Georgi Markov, also former Constitutional Court member, comments the case for "24 Chassa". In his opinion the attempted impeachment of President Purvanov will fail for two reasons: first, there would be hardly seven Constitutional Court members to vote for Purvanov's removal and, second, it is highly disputable whether there has been violation of the Constitution. Markov explains that four of the Court' members have been appointed by Purvanov while the Court's President used to be his personal advisor.



"Troud" publishes commentaries on the Purvanov-Djankov scandal. Order, Lawfulness, Justice (OLJ) leader Yane Yanev is quoted as saying that a demand for impeachment should be supported by two thirds of the MPs or at least 161 votes. This means that the votes of GERB, Ataka and the Blue Coalition would not suffice. "Georgi Purvanov's reaction is a preventive counter-attack against the risk of surfacing of his links with businessmen from the underground world. We have always said that he is not worthy of the position he holds and with his conduct he is becoming dangerous about the stability of the state," Ataka leader Volen Siderov says. In his view the Head of State is trying to discredit the Government and the reforms, which it has been implementing. According to Socialist Tatyana Doncheva, Djankov made a gaffe, which he then tried to cover up in his talk with the President but was highly unsuccessful. The paper also cites Bulgarian Socialist Party (BSP) leader Sergei Stanishev as saying that when a Finance Minister has a formal meeting with the President, he should be aware that the talk is public.

"Standart News" publishes the opinion of four political analysts under the headline "Transcript as Boomerang". According to Yulii Pavlov, rather than requesting a meeting with the President, Djankov should have stated the facts in a public declaration. As far as the published transcript is concerned, it presents Purvanov as petty-minded and quarrelsome person, Pavlov states. Vassil Tonchev predicts that clashes between the President and the Government will become more frequent with a view to the presidential and local elections due next year. Miroslava Radeva describes the scandal as a possibility for Purvanov to reap dividends for his political future. Zhivko Georgiev is categorical that this is only a waste of public energy. In his view getting rid of the Finance Minister would be a successful move for the incumbents.

"It is madness to make a drama from a show," Prof. Dragomir Draganov says in an interview for "Troud". In his view Purvanov's reaction was inadequate. "He [the President] was either angry with the Government and was seeking a way to say what the reason for his anger was or he was desperate for not being heard. It is not fair on the part of Djankov to carry out the tricks of the World Bank, while the private business waits for the payment of 2,000 million leva in outstanding obligations from the state."

"Is it time for a war between institutions," "Pari" asks. The case made Prime Minister Borissov begin talking again about early elections. "Yet, who would win, if such elections are held?", the author asks. The public support for GERB has dropped by 13.3 per cent. The fight with Purvanov may prove dangerous for the Prime Minister and the Government and divert the Cabinet's attention from its most important objective - preserving the country's financial stability.

ECONOMY

The Cabinet is secretly preparing a plan for quick overcoming of the crisis, "Sega" writes. The said measures have been drafted for a month now by a taskforce and will be adopted within a special law on recovery of the Bulgarian economy, the paper says referring to Deputy Finance Minister Vladislav Goranov. The package of measures includes accelerated repayment of the state debts to the business, reduction of the social security burden, etc. The plan will rely on privatization as a quick source of revenues for the Treasury in the conditions of exhausted economy. The bill will be ready in two or three weeks, the paper says.

***

Bulgaria loses 133 million leva from the 15 per cent drop of imports, "24 Chassa" writes. The paper refers to data of the Customs Agency showing that in the first two months of the year imports decreased by 15 per cent year-on-year. This was the reason for the drop of revenues from customs, excise duties and VAT. In January-February 2010 the Customs Agency collected 913.8 million leva, 12.7 per cent down from the like period of 2009. The excise duties gathered were 575.4 million leva marking a decrease of 13.8 per cent. The revenues from VAT dropped by 7.4 per cent while the ones from customs duties halved.

***

Last year the real estate market saw its biggest ever decline as of the beginning of the democratic changes, "Troud" writes. About 200,000 transactions were signed then, which is by over one third down compared to 2008. In the 2006-2008 period the transactions struck annually were not less than 300,000, the paper recalls.

***

In an interview for "Sega" Rositsa Steliyanova, Executive Director of the Employment Agency, says that 52,000 unemployed will undergo re-training and will be offered new jobs. As she put it, nothing unexpected has happened on the labour market. "We even expected that January unemployment was slightly higher but it remained below 10 per cent. We expect it to be over 10 per cent in the first quarter of the year. What matters for us are the offers for seasonal workers that would be made in the beginning of April." Steliyanova said that the Agency is absolutely certain for the time being that the average annual unemployment would remain within 11.4 per cent as projected.

***

Pharmacies insist that patients pay a fee for having their prescriptions fulfilled as is the practice in the other EU Member States, "Troud" writes. This transpired at the 3rd Congress of Bulgarian Pharmacists. In the United Kingdom this fee is allegedly three pounds.

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 – March 08, 2010

• The President's administration has sent to Parliament Chair Tsetska Tsacheva an audio recording and a hard-copy transcript of Georgi Purvanov's conversation with Deputy Prime Minister and Finance Minister Simeon Djankov of March 5 when the two met at Djankov's request.

• Gold jewellery worth over 50,000 leva was intercepted by customs officers at Kapitan Andreevo border checkpoint. Two Polish citizens were attempting to smuggle it across the border.

• President Georgi Purvanov conferred the Order of the Balkan Range, First Class, on the outgoing Ambassador of the Republic of Korea, Kim Myong-jin, for his great contribution to the development and strengthening of bilateral relations. Purvanov said that there had been different periods in the two decades of official diplomatic relations between Bulgaria and the Republic of Korea, but that the last few years were seeing a boom in political dialogue, economic contacts and cultural interaction.

• The money for dentists and general practitioners for January will be paid on Monday and 100% of the payment for February for pre-hospital aid will be paid regularly, while on Wednesday some BGN 350 million will be poured into the healthcare system, said Dr. Vanyo Sharkov, chairperson of the Bulgarian Dental Association, announced in interview to BNR, after the meeting between the medical organizations and the Prime Minister.

• Bulgarian government will propose 2% increase of health insurances, government’s press office announced. On Wednesday, the Council of Minister will decide to allocate extra BGN 350 million to the National Health Insurance Fund and will propose 2% increase in the health insurances.