„Despite risks the Bulgarian economy is faring well”, President Rosen Plevneliev said at the Tenth Annual Meeting of businesses with the government in Sofia focused on “Bulgaria in the global insecurity – risks and opportunities for the economy”. He also said that 20 years ago the Balkans had been isolated but today the picture was different:

„Today we have grown more interdependent in the region. Today we work to create trust. We do not erect economic walls; we do not redefine Balkan borders. We want to see borders collapsing, not moving. Never before have cooperation and good neighbor relations been such a decisive factor for positive development.”

The head of state also said that in Bulgaria and the region we could see virtually every day a clash between the oligarchic model and authentic entrepreneurship, between responsible business built with plans for the next generation and shady structures born in backstage deals. He believes this is a clash between the past and the future.

„Urgent reforms are an imperative, not only in Bulgaria but across the region. They are practically the same – a functional system of administering justice, electronic services and e-government, full transparency in public procurement and anti-corruption legislation.”

Rosen Plevneliev urged the businesses to think larger than the national picture, and above all, to think regionally.

Where the judiciary reform is concerned, the government’s agenda includes five bills that should be submitted to parliament – the Judiciary Act, the anti-corruption bill, two codes and the Law on Combating Terrorism.

Prime Minister Boyko Borissov pointed out he hoped that the “Balkan” Gas Hub would provide gas from various sources. He stated he had expected the refugee crisis to take place, as well as a possible rupture in Schengen. According to him a good option is the scheme used by USA – introduction of green cards for legal work in the territory of Europe. Asked what side Bulgaria took regarding Russia and Turkey, the premier’s answer was “neither side”, and he added, "We have clear European and Atlantic policies and we have to maintain good relations with our neighbors”. Borissov was explicit that he would never enter a coalition with DPS (the predominantly ethnic Turkish Movement for Rights and Freedoms), and that possible snap elections would spell instability for the country.

European Commissioner Johannes Hahn attended the meeting of Bulgarian businesses with the government. He praised this country for the high percentage of absorbed European funds during the past programming period. He said Bulgaria was a good example for other countries. It has opened thirty new factories for automotive parts. As to exports, he commented that the key driver of Bulgarian exports was Germany, with volumes having tripled over the past ten years. More generally, Hahn said that strengthening outer borders should already be a fact, not a topic for discussion.

Economy Minister Bozhidar Lukarski hopes that the economic growth of Bulgaria in 2016 will not be below 2015 growth despite developments in the Middle East, the Turkey-Russia conflict and the state of the Chinese economy – all key factors likely to influence economic indices. In 2015 Bulgaria’s Gross Domestic Product exceeded three times original predictions and despite skepticism this year may see a growth in investments. Lukarski summed up the main problem facing investments in Bulgaria as follows:

„The lack of qualified hands for middle management and top executives especially in machine-building and the automotive sector hinders the investment flow to Bulgaria. Bulgaria experiences a shortage of engineers and IT specialists.”

On behalf of businesses, Ivan Mihaylov from Visteon Bulgaria commented that skilled staff was not returning to the country due to insufficient motivation.

”The market is quite auspicious and we have to encourage it, but this is only possible with support from the state. People are paramount. We will buy technology or equipment but we need people first to get business going”.

Ivan Mihaylov believes that we are still below the maximum of alleviating the business environment and exports.

Tomislav Donchev, Deputy Prime Minister for EU funds and Economic Policies, said that there was well organized resistance against key reforms that the country needed and this prevented politicians from decisive action.

„A country with 3.1 million employed, 2.2 million pensioners, 279,000 unemployed, 604,000 pupils and 257,000 university students cannot possibly have a stable social structure. Our major challenge is to learn how to attract and keep people.”

Corruption is seen as being at the toot of the problem with growth. More from Tomislav Donchev:

„The worst thing about corruption is that it in fact replaces fair competition. With rampant corruption at hand, it is useless for a business to try to become better and to compete. Corruption distorts the rules of the game and in a most grotesque way at that.”

Regarding the energy sector Energy Minister Temenuzhka Petkova pointed to three top priorities: financial stabilization of the sector, introduction of full liberalization of the energy market and diversification of sources of energy supply. She announced the launch of a Bulgarian independent energy market that had already started work in real time.

English version Daniela Konstantinova