Bulgarian Press Review August 25, 2009

Press Review
Sofia, August 25 (BTA)

HOME SCENE

The proposals of the Finance Ministry for tightening of the belts in the income policy due to the crisis has triggered the first clashes in the government, "Dnevnik" writes on its front page. According to the paper, Social Minister Totyu Mladenov objected against the freezing of the minimum working wage and the welfare pension planned within the medium-term fiscal framework for the 2010-2013 period. Monday the employer organizations within the Tripartite Council (emplo) backed the position of Deputy Prime Minister and Finance Minister Simeon
Djankov while the trade unions - of Minister Mladenov.

"Dnevnik" writes that Prime Minister Boyko Borissov did not find any misunderstanding between the two saying it is normal that the Social Minister would insist on an increase of pensions and salaries, otherwise he would not be a typical social minister. "At the same time, thinking realistically, the Finance Minister finds this impossible for the time being," Borissov is further quoted as saying. At its Wednesday meeting the Cabinet will adopt the final version of the framework. The document envisages that the 2010 public-financed sector incomes would keep their level as of the previous year while in the following years the wages will grow proportionally to the increase of the gross domestic product. Freezing of the pensions is planned for next year as well given that this year they increased by 19.7 per cent. This is one of the few budget expenditures, which the new cabinet promised not to curtail despite of the deficit, which is expected to be inherited from the previous government. However, the incumbents are planning to reduce compensations for unemployment by over 10 per cent as the new levels will be 110-220 leva, given that now they are 120-256 leva, "Dnevnik" further writes.

"Troud" gives prominence to the news that 70,000 white-collar workers are to be laid off. The paper cites Finance Minister Simeon Djankov as saying that the ministers will have to reduce
their staff by about 15 per cent as of January 1, 2010 as the beginning of a large-scale administrative reform.

In June a total of 199 officials received remuneration higher than the Prime Minister's pay; ex-finance minister Plamen Oresharski ranked 37th in terms of salaries, bonuses and royalties within his Ministry, "24 Chassa" writes referring to a report ordered by Finance Minister Djankov. The system of payments and bonuses is wrong and will be replaced, the Finance Minister says cited by the paper. A full analysis of the public administration in terms of structure, functions, human
resources, salaries and bonuses will be made within several months.

Pensions account for about 22 per cent of all public expenditures in the country, writes Georgi Stoev of "Industry Watch" in an article published by "24 Chassa". In 2009 alone they equalled about 6,500 million leva. The social security system cannot be self-financing, i.e. the revenues from contributions do not suffice to cover the current expenditures for pensions, he notes. In his view the public debt to the pensioners should begin to be reduced and the state should openly recognize this as its obligation.

The crisis will reach its peak next year, when unemployment is expected to reach 11.4 per cent and 2011 will see economic growth, "Standart News" writes. The paper publishes these figures referring to the Finance Ministry's medium-term fiscal framework 2010-2013.

A purge is about to be launched in the energy sector, "Pari" writes on its front page. The CEOs of the National Electric Company (NEK) Lyubomir Velkov and Mardik Papazyan are about to be dismissed for inaction, the daily notes. The same paper writes that Kozloduy N-plant chief Ivan Genov has also tendered his resignation and Bulgarian Energy Holding Deputy Chairman
Tencho Popov has promised to held them liable.


BULGARIA - EU

This is the second time that Brussels halts funds within Operational Programme Transport that were about to be used for the completion of the Trakiya Motorway and sections of other motorways, "Standart News" writes. The reasons are persisting weaknesses in the building up of the central electronic system for payment management and control.

The government is discussing two possibilities to "save" funding under the operational programmes, "Sega" writes. It transpired on Monday that the European Commission has rejected four out of seven operational programme compliance assessment reports submitted by Bulgaria. The plans are to revise quickly the already submitted compliance assessment reports or draft new
ones. This may be done by November, when the Commission will finally decide on the reports. If they are rejected again, Bulgaria would have to reimburse already absorbed funds, the daily writes.

***

"24 Chassa" runs an interview with EU Commissioner for consumer policy Meglena Kuneva. According to her, Bulgaria's Permanent Representation to the EU should outline concrete steps for the following weeks. "We have very difficult coordination among the ministries; there is a problem with the assuming of responsibility," says Kuneva. She also notes that Bulgaria may face trial at the European Court of Justice due to the delay of the construction of the waste plant in Sofia.

***

The EU funds still remain inaccessible for Bulgaria as Brussels does not believe that the country may handle them, writes Svetoslav Terziev in an analysis in "Sega".

***

All EU-related projects of the Education Ministry will be published on the Internet, says Deputy Minister of Education, Youth and Science Svetlana Lomeva, in an interview for "Sega". She lists out citizens' education in schools and incentives for first employment of youth as priorities in her work.


JUSTICE AND HOME AFFAIRS

There are 194 skilful safebreakers in this country, of whose operation the police is aware, "24 Chassa" writes. They conduct six strikes against the safes of rich people weekly and steal 50
to 200,000 leva.

"I do not want to be a judge in Bulgaria," says Helmut Palder [name may be misspelt] in charge of international relations at the Justice Ministry of the State of Bavaria in an interview granted for the "Troud" paper. In his view there is no political climate, in which magistrates may feel well rather than sweating and trembling, when investigating the high echelons of power, that their work is undesired.

***

The Holy Synod declares itself against the concert of Madonna in Sofia on August 29, the dailies write. In a special address the Synod says it wants to prevent people from temptation on the day, when the church marks the beheading of John the Baptist. "In almost all of its concerts Louise Ciccone has shown disrespect for the believing Christians," reads the statement. "Troud" writes that Madonna is coming to Sofia together with her children. Her escort and she will fly on two private aircraft.

***

Every year, a total of 35,000 children, students and veterans will spend a holiday at the International Children's Camp in Kamchiya, owned by the government in Moscow, the Varna edition of "24 Chassa" writes. The facility should be completed by mid-2012.




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 – August 25, 2009

• Several fires have been raging in Bulgaria over the past 24 hours. The biggest one – close to the southern town of Simeonovgrad – has been already contained. A locomotive and rose plantation caught fire in the municipality of Plovdiv. The dry and hot weather is a prerequisite for fires. Because of the situation in Greece, Bulgarian-Greek border is being closely monitored.

• One of the reasons for the poor financial condition of the National Electricity Company (NEK) is the EUR 270 million credit agreement, said State Energy and Water Regulatory Commission (SEWRC) Chairman Konstantin Shushulov, cited by FOCUS News Agency. The agreement was signed to construct Belene NPP. Shushulov says that the irregular repayment of installments and rise in interest rate from 4.5% to approximately 5% are some of the reasons for the company’s poor financial condition. He added the state would suffer losses of more than 10-11%, between EUR 8 million and EUR 20 million. He noted that if the conditions were not met, the loan would become executable immediately.

• The deadline for the positive completion assessments on the European Union operational programs that Bulgaria is working on is October 21. This has been announced Monday by Bulgaria's ex-Vice Prime Minister, Meglena Plugchieva, in an interview for the Bulgarian National Radio. "The EC is returning these completion assessments in order the latest lapses to be corrected, so theses schemes can be accepted as working with positive evaluation", Plugchieva said. The dead line until which Bulgaria must receive positive correspondence evaluation for the operative programs is October 21. This is the data when the two-year accreditation of the programs expires. Two year ago the first advance payment were made, too.

• Economy, Energy and Tourism Minister Traicho Traikov said Tuesday that Dimiter Angelov will be appointed as the new Executive Director of the Kozloduy N-Plant. Angelov has held various positions at the nuclear plant and is currently chief engineer.