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.