The Bulgarian Parliament will vote on second reading Wednesday and Thursday legislation relating to Bulgaria’s state budget for 2012.

Prior to that, the Bulgarian government had agreed with trade unions not to up the retirement age before 2021, and had signed an agreement with representatives of farmers regarding much larger subsidies than those stipulated in the draft budget 2012.

Key figures in Bulgaria’s draft budget for 2012, as defended by Minister of Finance Simeon Djankov, include a deficit of 1.35% of GDP, growth of 2.9%, and inflation of 2%.

www.novinite.com

They insisted on a meeting with Borisov and his Deputy, Finance Minister, Simeon Djankov, but did not get a positive response.

Meanwhile, the demonstrators, represented by the National Grain Producers Association, were invited to meet with Agriculture Minister, Miroslav Naydenov, but declined the invitation on the grounds he is not authorized to sign any decisions.

The Association’s Chair says – one the invitation came too late and two – people have trust only in Borisov’s words.

The grain producers demand adherence to the financial agreement signed by the cabinet in September, immediate lift on excise on fuel they use and Djankov’s and Naydenov’s resignations. They vowed to stage a new protest Wednesday. Their permit expires at 10 pm the same day, when they have to leave the city.

Meanwhile, Naydenov confirmed that the cabinet remains unwavering in not giving in to the grain producers in their demands for more funding, saying he favored their sector for a long time, and now is “enjoying the results of it.”

“They will receive what is slated in the budget – this is what we can do now; I wish it was more too. If we show weakness and yield to the pressure – we will have a domino effect,” the Minister stressed.

He appealed to the protesting farmers to act reasonably and stop the rallies, saying as a citizen and father, he wants Bulgarians to have on the table not only grain, but meat, fruits and vegetables.

Naydenov explained that the Association of Grain Producers first asked to meet at 9 am; then said it was too early and asked for 11 am, and then changed it to 2 pm, and finally were the only ones from the farming sector, who failed to show up.

www.novinite.com

The fiscal policy of PM Boyko Borisov‘s center-right GERB cabinet only leads to a prolonging the period of depression in Bulgaria’s economy, according to former Minister of Finance Plamen Oresharski.

Oresharski commented two years after Borisov’s GERB part swept general elections on July 5, 2009.

“The collectibility of revenue has visibly dropped, excessive budget deficits above 3% of GDP were realized, the fiscal reserve shrunk with some BGN 3 B, while state debt has grown with another BGN 1 M,” said the ex-FinMin and present MP from the Bulgarian Socialist Party.

He also snubbed present Minister of Finance Simeon Djankov early ambition to join the Euro, describing his 2009 priorities as “naive absolutization of the idea of joining ERM-II against all odds.”

Oresharski also criticised the delayed payment of arrears which not only proves detrimental to the economy, but also allows for warping of budget accounting.

“If we also take into account the chaotic signal that this government is sending out every other day regarding key fiscal parameters, it is not hard to explain the loss of trust on the part of businesses and households,” added he.

The former Bulgarian Minister of Finance further commented that although in 2009 the Borisov cabinet could well blame the former three way coalition government, with two years in power that is no longer plausible.

www.novinite.com

The average incomes of Bulgarians will surpass those of Romanians in two years, Bulgaria‘s Finance Minister Simeon Djankov vowed on Tuesday.

Djankov announced his ambitious plan speaking before the private bTV channel. He pointed out the Bulgarian GDP per capita expressed in Purchasing Power Standards is 43% of the EU average, while Romania‘s is just 2% higher, according to Eurostat.

In 2009, Bulgaria‘s GDP per capita expressed in PPS was a mere 37% of the EU average.

According to the International Monetary Fund, the Romania‘s GDP per capita in 2010 was EUR 5205, while Bulgaria‘s was EUR 4372.

Confronted by the anchor, who stated the average early salary in Romania is more than EUR 1000 higher than in Bulgaria, he called this piece of statistical information “strange” and reiterated the Eurostat data.

Djankov’s interview was focused on the 2-year anniversary since the centrist-right GERB was elected to create its minority government. According to the Finance Minister, the government’s biggest achievements are the construction of highways, the construction of new sport facilities, as well as museums and other cultural facilities. He claimed that investments in sport facilities will “keep people healthy”.

However, Djankov also stated that a larger share of the budget should go for education and culture, while spending on the Interior and Defense Ministries should be cut.

www.novinite.com

Bulgaria’s government is certain to set up a state-owned mega-company to be in charge of large-scale infrastructure projects, a somewhat controversial brainchild of Regional Development Minister Rosen Plevneliev.

The new infrastructure company will be called State Company “Strategic Infrastructure Projects”. It is to be established as on Thursday, the Bulgarian Parliament adopted amendments to the Road Traffic Act, which include provisions for its setting up.

The mega-structure will be place in charge of “strategic infrastructure projects”, namely the Struma Highway (running from Sofia to the border with Greece; expected completion date – 2014), the Hemus Highway (running from Sofia to Varna through Northern Bulgaria; expected completion date unknown), or the Cherno More (i.e. Black Sea) Highway (running between Varna and Burgas on the Black Sea coast; expected completion date unknown).

Unlike the Trakiya Highway (running from Sofia to Varna via Southern Bulgaria; expected completion date – 2012), the Maritsa Highway (running from the Trakiya Highway to the border with Turkey; expected completion date – 2013) and the just completed Lyulin Highway (running from Sofia to the Struma Highway), Struma, Hemus, and Cherno More have been lagging behind.

According to the MPs of the ruling center-right party GERB, Plevneliev’s proposal is supposed to accelerate the realization of these major infrastructure projects, and to lead to a more efficient absorption of EU funds, especially under EU’s “Transport” operational program.

Bulgaria’s Strategic Infrastructure Projects company will have a status of a state enterprise under the Commercial Act.

Opposition MPs such as former Socialist Transport Minister Petar Mutafchiev have criticized the establishment of the new company arguing that it will be eating away at the functions of the existing Road Infrastructure Agency.

The previous head of the Agency, Bozhidar Yotov, resigned from his post over disagreement with Regional Development Minister Rosen Plevneliev, including over the establishment of the new statement company for the three above-mentioned highways.

According to preliminary estimates, the planning of the Struma, Hemus, and Cherno More highways will cost EUR 160 M, while their construction will total over EUR 4 B.

The Struma Highway, whose construction is well under way, alone will cost EUR 1.1 B.

Bulgaria’s former foreign minister and current member of the European Parliament, Nadezhda Neynski, formerly Mihaylova, has confirmed plans to join the race for president in the autumn.

“I believe I am fit to run for the presidential office, which is the reason why I have agreed that my party debates my nomination,” Neynski told the morning broadcast of Nova TV channel on Friday.

“It does not matter what I think about my chances to win the elections. What my party thinks is what matters most.”

She stressed that the most important issue during the run-up to the presidential elections should be the debate about the prerogatives of the head of state office and warned of the danger of disappointment.

Nadezhda Neynski has been the name most often mentioned by media and public as a possible right-wing candidate. A recent poll has shown she enjoys about 10% support.

The Blue Coalition has said it is ready to negotiate with other parties as well. According to them the election platform of the presidential candidate must focus on education, health care and administration.