Bulgarian press review, February 22, 2010

Press Review
Sofia, February 22


THE HOME SCENE

The results of a nationally representative political survey conducted by the Alpha Research Agency for Market and Social Research between February 7 and 15 are at the focus of attention in the Monday newspapers. "Confidence in GERB Plummets but Not In PM Borissov" caps a report on the topic in "Sega" which says that public trust in GERB decreased by 13.3 per cent compared to late August but this failed to affect the personal rating of GERB leader and Prime Minister Boyko Borissov whose approval is at 51 per cent. The approval ratings of all political parties with the exception of the Movement for Rights and Freedoms decrease too. If elections were held at the moment, GERB would garner 38-40 per cent electoral support, the Bulgarian Socialist Party, 13 per cent, and the Movement for Rights and Freedoms, 6 per cent. The Blue Coalition and Ataka would win some 3 per cent each, and Order, Lawfulness, Justice 0.9 per cent. The average grade of the performance of the Borissov cabinet fell from 4.13 from its 100th day in power to 3.79 at the moment. The Interior Ministry's organized crime networks' dismantling operations, Kristalina Georgieva's election as EU commissioner and Rumiana Jeleva's resignation as foreign minister are the three events that have had the strongest positive impact on the Government's image in recent months, the poll found. Hospital closures, Rumiana Jeleva's failed EU commissioner candidacy and the non-payment by the State of part of the amounts owed to companies have had the most pronounced negative impact.

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"Monitor" quotes a statement by Interior Minister Tsvetan Tsvetanov on Sunday that the Octopus criminal group and what came to be known as The Impudent gang were structured not without support from the state. "The Octopus tentacles have reached politicians, as well as the Interior Ministry," Tsvetanov said. The battle is difficult, he says, because the criminal groups have ample financial resources and no one has worked against them "in depth". The Interior Minister said that next week there will be dismissals of officers in the system of the Interior Ministry on suspicions of involvement with criminal groups.

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In an interview to "24 Chassa" Interior Ministry Chief Secretary Kalin Georgiev says that commandos from the specialized squad for combatting terrorism will train officers in each regional directorate of the Interior Ministry how to conduct arrests of members of high-profile organized criminal groups. The commandos mini-squads will take part in all bigger anti-mafia operations nationwide, Georgiev says. He says that many of the victims of the methods of work of the Octopus crime gang reportedly wanted to meet personally top officials of the Interior Ministry and the Minister himself to see that the investigation against the Octopus members is true. In an operation codenamed Octopus, former State Agency for National Security officer Alexei Petrov and 13 other persons were arrested on the night of February 9 to 10 and were later charged with blackmailing, extortion and racketeering, inducement to prostitution, drug pushing, influence trading, money landering, concealment of income, tax evasion and fraudulent recovery of VAT input tax.

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Former National Assembly chairman and prominent lawyer Ognyan Gerdjikov says, interviewed by "Troud", that the legal team of the current Parliament is the weakest so far. Gerdjikov further comments that new political parties appear all the time and attract public trust. Such was the case with the National Movement for Surge and Stability, and also with GERB, which quickly managed to win voters' confidence and become "election hits". It is inevitable for such parties to have some people who are not cut out for political work, he says, noting that there is no way for quickly established formations to find the best persons.

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A report in "Troud" quotes Democrats for Strong Bulgaria leader Ivan Kostov as saying that Movement for Rights and Freedoms leader Ahmed Dogan was one of "The Untouchables". On Sunday Kostov urged the law-enforcement authorities and the prosecuting magistracy to do their jobs properly and reach up to the so-called Untouchables. Speaking on the Bulgarian National Radio Kostov decline to name more "Untouchables" saying that this is not a politicians' job.

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"Sega" writes that Bulgaria's first EU commissioner Meglena Kuneva, who was in charge of consumer protection, may be the National Movement for Surge and Stability (NMSS) candidate in the 2011 presidential elections. NMSS Chair Hristina Hristova broke the news in a Bulgarian National Radio interview on Sunday. Kuneva's nomination has not yet been formally discussed in the party. On Saturday Kuneva said she had declined an offer of President Barroso to continue to work at a high-ranking position in the Commission. Kuneva said she had decided to return to Bulgaria and get involved in politics.

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Interviewed by "Sega" Defence Minister Any Angelov says he pledges his reputation as a guarantee for the biddings held by his Ministry. Angelov stresses that the Ministry works in a very transparent manner. All orders, decisions, as well as answers to MPs' question are made public. Angelov says that since the new leadership of the Ministry took office, all public procurement competitions are open. He stresses that the new leadership does not resort to the ordinance concerning special public procurement in order to hold biddings under the cover of the protection of classified information.

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A headline in "Troud" alerts that the Commission for the Positive Medicines List has decided that patients with Parkinson's Disease and cataract sufferers will have to pay for their treatment while hitherto it was covered by the National Health Insurance Fund. Patients with osteoporosis will have to pay more for their medicines. The most alarming in the decision, which was made on February 18 and enters into force in March, is that diabetes patients will have to pay between 20 and 40 leva monthly for insulin while until now the medicine was provided free of charge.

ECONOMY

A snapshot of people's incomes in 2009 derived from a Gallup database shows that the economic meltdown spared the rich and the poor but badly affect the middle class. Gallup's Zhikov Georgiev comments the snapshot in "Troud", saying that the first 10 per cent of the richest people in Bulgaria hold 41.5 per cent of the aggregate cash incomes of all households. In the next group the percentage is 14.7, while the poorest account for 1.8 per cent of the aggregate incomes. The trends observed in the snapshot are that the middle class has been sharply impoverished and that the gap between the richest and the poorest has widened. Regional differences became more pronounced. Georgiev concludes that Bulgaria is no longer a single space economically, as well as socially.

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In a "24 Chassa" interview Economy, Energy and Tourism Minister Traicho Traikov says that "temporarily, Bulgaria will use Russian money for the Belene nuclear power plant". Traikov notes that only a few months back such an option was "a distant dream". "We now have an offer for financing whereby we do not take a commercial risk and are not asked to offer state or corporate guarantees. However, for this to happen, the sides need to agree on certain key issues so that we are sure that we have a lasting structure," he says, adding that such an entity should include a big strategic investor, a western utility company. According to Traikov, this is the wish of the Russian partners as well.

"Pari" quotes Union of Democratic Forces (UDF) leader Martin Dimitrov as saying that the lobbies in favour of the construction of the Belene N-plant are very strong and that only UDF is against the project. Dimitrov urged Traikov to provide more information about the possible loans for the project and their conditions. The UDF leader is of the opinion that the project can easily ruin the Bulgarian economy and is even dangerous for this country. "The project must be stopped," he says.

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A front-page report in "Sega" says that public servants' monthly salaries vary between 600 and 2,400 leva. The article says that the remuneration in the state administration is chaotic and that the average salaries in some departments are four times higher than elsewhere for no logical reason. An employee of the Commission for the Protection of Competition gets 2,416 leva while an employee of the Social Assistance Agency, as little as 567 leva, says the report. The findings are quoted in a secret report of remuneration in the state administration sent to the Council for Administrative Reform a copy of which "Sega" obtained. Shocked by the findings in the report, Finance Minister Simeon Djankov said last week that a new model of remuneration will be introduced as of January 1, 2011.

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Contraband trade in cigarettes will "swallow" 800 million leva in revenue to the budget, says a report in "Troud". Unofficial data show that the contraband trade in cigarettes reaches 50-60 per cent of the market, and even 70 per cent in some border areas. Chairman of the Association of Producers and Sellers of Tobacco and Tobacco Products Hristo Lachev is quoted as saying that illegally sold cigarettes increased by 30 per cent compared to 2009 while the official market shrinks by 5-10 per cent monthly.

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"Sega" informs that the tax authorities are starting checks of members of the public who reported incomes of more than 50,000 leva for 2009. More than 90 per cent of the natural persons who earn the largest incomes in Bulgaria have failed to register under the Value Added Tax Act even though such registration is mandatory, National Revenue Agency Executive Director Krassimir Stefanov said.The one hundred top earners of incomes from sources other than employment relationships declared an aggregate 347 million leva in their tax returns for 2009. Between them, the top three on the list earned over 48 million leva.

FOREIGN POLICY

"Sans Emotions towards Russia" caps an interview in "Standart News" with Foreign Minister Nickolay Mladenov. Mladenov says that in the past few months the government has undertaken actions to ensure more flexibility in energy supplies. The fact that a given country is looking for ways to diversify its energy sources and this ensure security of supplies does not mean that the issues is directed against Russia, Mladenov says. "Our relations with Russia should be based on the understanding by both sides that we are sovereign states which solve the outstanding issues between themselves in a normal dialogue, without excessive emotions," Mladenov says. He is categorical that Bulgaria does not hold talks about elements of the United States' missile defence system.


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, February 22, 2010

· Most likely, the Bulgarian National Security Strategy will be adopted before the new strategic concept of NATO, which is expected to be approved in Lisbon in the autumn, Secretary of the Security Council in the Prime Minister Gen. Rumen Milanov explained at a round table discussion: "Strategy for Homeland Security - public expectations and political consensus”.

· Bulgaria will continue talks with Russia on lending some EUR 2 million to back the construction of NPP Belene until a strategic investor is attracted, Bulgarian Minister of Economy, Energy and Tourism Traycho Traykov told media. Last Friday Traykov met with his Russian counterpart Sergey Shmatko and Rosatom Director General Sergey Kirienko. Traykov said a new project company involving the National Electricity Company (NEK) or the Bulgarian Energy Holding will be set up and financed by the Russian side to ensure the project moves forward. The loan will be secured by existing and future construction with no state guarantees required, he noted. In an interview with 24 Hous Daily, Traykov explained that it was so far impossible to determine what stake the Russian side would have based on the EUR 2 billion investment, but assured that Bulgaria will hold the majority share in the project. He commented on Mr Shmatko’s statement implying that RWE might return as the strategic investor in the project, saying that when the German company had withdrawn the conditions were different. Traykov added that during the official visit of the Bulgarian delegation to Germany, German Chancellor Angela Merkel had promised to encourage German companies to participate in energy projects in Bulgaria. He said that Bulgaria relies upon Russia’s support during negotiations with potential investors.

· Number of unemployed people in Bulgaria is 272,800 in the Q4 in 2009 and the unemployment rate is 7.9%. Compared to the same period in 2008 the number of jobless people is increased with 95,100 and the unemployment rate with 2.9. This emerged from the statistics of NSI. Unemployment rate increases more sensibly among men compared to women (increase in the rate is respectively with 3.5 and 2.3 points), as in the Q4 2009 jobless rate of men (8.4%) exceeds the jobless rate of women (7.4%) with 1 percent.
Unemployed young people (15-24 years of age) are 53,200 and the rate of youth’s unemployment reaches 19.5%- respectively 20.9% for men and 17.3% for women.
In the period Q4 2008 – Q4 2009 there is significant increase in number of long-term (less than a year) unemployed people n Bulgaria. It rises with 86.8% and reaches 155, 200, or, 56.9% of all unemployed people.