Borissov to Business Community: No Way to Form a Better Government


Sofia, January 20 (BTA) - Addressing the traditional annual
meeting of the government and business on Tuesday, Prime
Minister Boyko Borissov said: "I am far from saying that we have
come to deeply love one another, we just know that we cannot
have anything better than what we have now."

The Prime Minister said it had been important to form a
government in order to attract investments, to absorb EU funding
and ensure stability. The EU money lost - about 25 million
euro - will be transferred to the next programming period.

Borissov said it could have been better if the Bulgaria without
Censorship project had not been put into operation. He said
political analysts should turn their attention to that project
which showed "how money can push a party into Parliament".

Bulgaria's strength lies in consolidating everybody's efforts
and working for success, said Borissov.

Commenting on the South Stream gas pipeline project and the
aftermath of Russia's decision to abandon it, Borissov said:
"President Putin did us a great favour when he pointed a finger
at Bulgaria from Ankara. The pressure he exerted on Bulgaria
helped both the EU leaders and the United States as our partners
realize that Bulgaria has come under very strong pressure."
Once the emotions have calmed down, Bulgaria will seek a
pragmatic way - with Turkey and with the EU - to stay in gas
transit through the proposed gas hub.

The most important things for business are the judicial system,
infrastructure and financial stability, said Borissov. Over 5
billion leva will be paid out under EU programmes in 2015. "I
wish someone would tell me if the Eurasian Union or another
union can provide this funding," he said. Roads to Northern
Bulgaria are also among the priority projects.

Borissov said he was moderately optimistic about revenue
collection. An enormous effort is being made to ensure
compliance so there can be Easter supplements for pensioners,
among other things. The special services set a priority on
fighting VAT fraud, tax evasion and the grey economy. Between
600 million and one billion leva can be raised if this effort
succeeds.

As to pension funds, Borissov said the conclusion drawn at his
meeting with trade union representatives was that two or three
funds are in a good condition, while the rest need some
disciplining to become competitive and accountable and to
guarantee that they will be able to pay pensions when the time
comes. "I do not want people in the future to say that we shut
our eyes," he said.


Deputy PM Donchev: Expenditures should be optimized and the
quality of sectoral policies should improve

Tomislav Donchev, Deputy Prime Minister for EU Funds and
Economic Policy, said Bulgaria needs reforms in key sectors to
optimize expenditures and improve the quality of sectoral
policies.

The crises of 1996-1997 and 2014 in Bulgaria and the global
economic and financial crisis of 2008 have some things in
common. They show that the political and the economic system
failed and created too much injustice in society, said Donchev.
The mainstay of society is not necessarily standards, but a
sense of confidence and observance of rules, he said.

This year will be very strong as regards the absorption of EU
funds because it is a transition year between the old and the
new programming period. In 2015, 4,532 million leva of the
2007-2013 programming period will have to be absorbed.
Meanwhile, two operational programmes of the new period have
already been approved. Most of the rest of the operational
programmes are expected to be approved shortly.

Finance Minister Goranov: Legislative changes concerning
financial and bank regulators are needed

Finance Minister Vladislav Goranov said that people need to have
confidence in the State if confidence in the banking and
financial system is to come back. The idea that money likes
silence should not cover flaws of the financial systems. The
regulators' relative independence comes with certain weaknesses.
"It would be good to have collective decision making just to
be sure that the 'nuclear briefcase' will not be held by one
person only," said Goranov. That is why it is possible to change
legislation concerning the responsibilities in the banking and
financial system.


Radan Kanev of the Reformist Bloc: Agreement is needed on
pension reform, the rule of law and the financing of reforms

Reformist Bloc Co-Floor Leader Radan Kanev said Bulgaria's
development requires agreement among politicians on several
major points: to solve the pension system's problems caused by
the demographic crisis, to ensure the rule of law, and to find
financing for key reforms.

Kanev said: "Although the budget deficit threshold is 3 per cent
[as set in the Maastricht criteria], Bulgaria has a much
higher deficit due to the pension system, which will persist
for at least 15 or 20 years." The pension reform should have
two objectives: to deal with imbalances and to convince people
with jobs that it is worth paying social insurance
contributions.

Bulgaria failed to secure the necessary investments, said Kanev.
Using EU money all the time is an option, but it is also an
obstacle because this country must meet certain conditions.
Problems with the rule of law are the major hurdle for big
investors, while an inefficient, partisan administration hampers
small businesses.

The good news is that things can get better if the judicial
reform is implemented by eliminating political and corruption
pressure on that system, said Kanev. E-services will make the
administration efficient and transparent. However, even the best
reforms cannot be implemented unless financing is available,
he added.

***

Commenting on his statement at the WOMEN GERB forum over the
weekend that a woman could be Bulgaria's next president,
Borissov said it was not meant as an assessment of the incumbent
President but was prompted by the upbeat tone of the meeting.


President Rosen Plevneliev: 2015 Should Be
The Year of Action, Reforms,
Modernisation

2015 should be the year of actions, reform and modernization,
President Rosen Plevneliev said. This year is a rare chance to
move delayed reforms like those of an operational and fair
judicial system, health care energy, education, administration,
water supply and retirement, as well as the security sector, he
added. If these are delayed the economy will be unable to
implement its potential soon.

By 2020 Bulgaria will have over 30,000 million euro at its
disposal for investments as the Partnership Agreement with the
EU provides 15,000 million euro and the national budget will
provide at least as much.

Plevneliev underscored the pressing need of restoring
confidence in the Bulgarian National Bank, the Financial
Supervision Commission, the State Energy and Water Regulatory
Commission and the judicial system. Bulgaria needs effective and
independent regulators, as well as a functioning judicial
system, he said.

The current 2015 is definitive for achieving a positive change
and continuing the reform in the judicial system, the President
said, and appealed to Parliament to pass the Judicial System
Strategy and support its implementation.

Deputy PM on Coalition Policy, State Administration Roumyana
Buchvarova: Reform cannot be made without joint effort of
public, politicians

Bulgaria is at the beginning of a process which has to lead it
to concrete results like improvement of the situation in the
judicial system and the condition of the social environment, but
the horizon when we should expect results is distant, it is
seven years, Buchvarova said. No reform can be carried out
without accompanying efforts of the public and the politicians,
she added.

Legislation was among the problems outlined by Deputy PM
Buchvarova who focused on the exceedingly large accumulation of
laws and secondary legislation which are proving a hindrance to
business and the functioning of governance itself. The condition
of the media and the media environment was another subject on
which she commented, including insufficient transparency of
ownership and concentration which cannot be proved.

Bulgaria will become euro-zone, Schengen member, but when we
learn how to govern our own country: Finance Minister Gorabov

It is most natural to talk about becoming part of the euro-zone
because we belong there. BulgariaТs EU membership passed through
three stages, the first being in 2007. The next two, Schengen
and the euro-zone will be overcome when Bulgarians learn how to
govern their country instead of inviting foreign experts to
resolve its problems, Goranov said.

Energy Minister: Urgent Solutions Are Needed to Avoid Collapse
of Energy Sector

Energy Minister Temenouzhka Petkova said that the deficit at the
National Electric Company (NEK) is slightly over 3,000 million
leva, while the current deficit for 2014 is 598 million leva. In
her opinion, there is a serious drama at the Energy Sector and
this predetermines the need of urgent solutions in order to
avoid a collapse of the sector.

Regarding the country's energy independence, Petkova said that
the country relies on exploration and extraction of gas and oil
from local deposits. Another important task in this area is the
completion of the interconnectors with Greece, Turkey, Serbia
and Romania. Bulgaria attaches priority to the accelerated
building of the interconnector with Greece, the Minister
recalled. Eighty million leva have been allocated in the 2015
budget for a state guarantee for this project. Efforts are being
made to ensure full financing of the project by the EU, Petkova
added.

Delyan Dobrev: Bulgaria Does Not Lose Anything from Halting of
South Stream

National Assembly Energy Committee Chair Delyan Dobrev said that
Bulgaria has not lost anything from the abandoning of the South
Stream project by the Russian side because it would have been
profitable only if its capacity had been fully used. However, if
only 50 per cent of the capacity is used - as is usually the
case with such projects - the South Stream Bulgaria company -
would go bankrupt in two or three years' time, Dobrev added.
Statements that Bulgaria would have to buy gas from Turkey via
Turkish Stream are not serious because it is not economically
logical, said Dobrev. He recalled that Bulgaria has signed gas
contracts and would defend its interests in case of violation of
these accords.

Justice Minister Hristo Ivanov: Achieving good governance
within the judicial system and clearing it of corruption are
among the reform's goals

Achieving good governance within the judicial system and
clearing it of its own corruption, which is seriously present,
are among the judicial reform's main goals, said Justice
Minister Hristo Ivanov.

According to Ivanov, there is serious corruption in the judicial
system, not just in the form of individual actions by separate
judges, prosecutors or investigators, who decide to take a
bribe. There are organized corruption groups, which have been
practicing it over many years and who are selling court
verdicts, exercising malicious influence over the way decisions
are made regarding the judicial system's governance and assuming
control over ever increasing parts of it, Ivanov noted.

A large package of anti-corruption measures is provided for
cleansing the judicial system, which include creating a watch
dog institution to conduct checks on and monitor the properties
and lifestyle of judges and prosecutors, and ask the questions
which are not being asked, the Minister further said.

Deputy Prime Minister for European Policy and Institutional
Affairs Meglena Kuneva: Bulgaria must have programme for
reducing regulatory burden

Bulgaria must have a programme for reducing the regulatory
burden, similar to the one of the European Commission, said
Kuneva. She listed the numerous ratifications that have been
made since Bulgaria has started waging battle against
corruption, including three conventions, eleven European
regulations, the Constitution, three codes, five regulations and
ordinances, 16 Council of Ministers decrees, etc. What is
needed, however, is political consensus between the
parliamentary forces on a specialized body for fighting
corruption, which can consolidate all functions and work without
political intervention and pressure.

Among the things needed to be done, Kuneva listed reform of the
control authorities, the introducing an anti-corruption test,
preparing the creation of an independent body for investigating
high-level corruption, introducing electronic public
procurements, electronic medical cards, etc.