The question how Bulgaria would exit the crisis caused by the Covid-19 epidemic has become more topical recently. At this stage, its solution is linked mainly with measures for support of the most vulnerable segments of the national economy-the small and the medium-sized enterprises. This is proved by the National Business Web Forum 2020 scheduled for today and organized by the United Business Clubs-Bulgaria with the support of The Bulgarian Small and Medium Enterprises Promotion Agency. The main topic of the forum –“Measures in support of the small and medium enterprises during the state of emergency” – clearly shows that the actions of the Bulgarian authorities after the state of emergency which ends on May 13 or earlier are now on the agenda.

Yesterday, Bulgaria’s Minister of Labor and Social Policy Denitsa Sacheva made it clear that the measures in support of the Bulgarian SMEs which have been in force since March will remain after the end of the state of emergency until the middle of June. Currently, the burden of keeping employment is shared between the state and the business in a 60/40 ratio, but Minister Sacheva made it clear that this may change and the business may start paying even less.

The National Business Web Forum will also discuss the new set of measures of the so-called Fund of Funds announced two weeks ago. Bulgaria will support with over EUR 600 million various entrepreneurial and community groups via this fund. However, the use of funds under programmes managed directly by the European Commission and the European Union will be also subject to discussions. Yesterday, the Commission approved a proposal of the Fund of Funds for easing the term of use of financial instruments in support of small and medium enterprises and start-up companies. Thanks to this approval, nearly 400 start-ups and innovative companies in the field of biotechnology, robotics, information technologies and pharmacy have now access to EUR 150 million.

Currently, the Bulgarian cabinet is facing an extremely difficult task. On one hand, it is forced to act quickly due to the criticism of the opposition which says that the government has no plan for exiting the crisis. On the other hand, however, it has to act extremely carefully due to the unpredictable situation in Bulgaria and elsewhere caused by the coronavirus pandemic. Yesterday, the government adopted the 2020-2030 Convergence Programme. The cabinet refrains from providing concrete medium-term data and speaks mainly of expected developments in the consolidated state debt, deficit and anticipated effects of measures aimed at overcoming economic constraints. Unlike the convergence programme, however, the cabinet must adopt mainly short-term measures to exit the Covid-19 crisis. We will soon learn the plan of the Bulgarian authorities to exit the crisis.

English version: Kostadin Atanasov