The Bulgarian Prime Minister Simeon Saxe-Coburg announced first measures of the government to start radical economic reform program. It was done in a dramatical statement to the Bulgarian people, broadcasted by the National radio and television last night. From October 1 the minimum wage in Bulgaria will be BGN 100 (about USD 45). The electric power and central heating prices will also be increased from the same date. The income up to BGN 110 will be exempt from taxes. Starting from the next year mothers will get twice as big family allowances, which now amount to BGL 8.5 a month per a child. The state fund for micro credits will be established in October. USD 20 million will be allotted for it. All privatization deals will be scrutinized by the Privatization Agency. A new institution for post-privatization control will be established apart from the Agency. The system of preferences for the Managers` & Employees` Associations will be abolished. From October 1 the state administration will be reduced 10 per cent. Simeon Saxe-Coburg won the June 17 elections with his National Movement Simeon II, having 120 seats in Bulgarian parliament out of 240 and promised fast end effective measures to improve living standard and to develop market economy in the country. Sunday`s statement of Simeon was the first one he makes as a Prime Minister since he took the office July 22.

Read more today in:

FOR THE RECORD SECTION - Full text of the statement of the Prime Minister

POINT OF VIEW section - What Financial Times says today on Simeon Saxe-Coburg radical reforms

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