BULGARIAN ECONOMY

Urgent measures for stabilization and improvement of the living conditions of Bulgarian citizens and for creating better business climate


The National Assembly has approved the proposed by the cabinet “Urgent measures for stabilization and improvement of the living conditions of Bulgarian citizens and for creating better business climate, and for democratization of the governance”. The parliament has assigned the implementation of the measures to the cabinet and asked the latter to report on the progress at the end of each month.

The plan of the cabinet was presented by PM Plamen Oresharski. The proposed measures could be divided into 3 main groups. Measures to improve people’s life (aimed at the energy sector, a package of measures in the social sphere, in the labor market, indexation of pensions, consumer protection; the second group is aimed at the business and the third at the democratization of the country’s governance).

In particular the measures envisage upping the minimal wage as of 1 October 2013(after consultations between the government, the trade unions and the employers’ organizations). In the energy sphere – to not allow further increase of electricity prices (the request is for 40% increase) and to change the methodology of price formation. The foreseen new methodology of price formation should lead to 5% decrease in the price, after July 1st 2013.

In the social area, the government plans to increase the mother’s benefits for children between 1 and 2 years of age, from BGN 240 to BGN 310, as of 1 July 2013. The plan is also to up the one-time aid for first graders from BGN 150 to BGN 250, to enlarge the group of people eligible to receive special need assistance, to restrain unemployment and to help young people start working.

The government has proposed to introduce as of 2014 the so called “Suisse formula” for indexation of pensions, and a package of measures to protect consumers from the market monopolies.

As for the business the cabinet foresees legislative amendments  aimed at easing the administrative burdens and bettering the business climate, to make public procurement procedures more transparent and such that allow for more candidates to participate, as well as to speed up the late payments of the state towards the businesses by August 30th, 2013. There are also measures proposed in the area of absorption of the European funds, among them to hold broad public discussion related to the priorities for funding of the Partnership Agreement and the operational programs of the EU, followed by their consideration by the National Assembly.

Premier Plamen Oresharski proposed decisive measures against the contraband and undeclared delivery of goods in the EU.

The measures for democratization of the governance set the date of September 30th 2013 as deadline for drawing up of the new Election Code. Proposals are to diminish the state subsidies for the political parties, facilitate   the participation of independent candidates in the elections, the setting up of civil bodies to the ministries, as well as for the restart of the work of the Council for Decentralization.

 

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