Bulgaria PM: Businesses Limit Investment, Fearing GERB Return to Power

Politics » DOMESTIC | March 16, 2014, Sunday // 12:25| Views: | Comments: 8
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Bulgaria: Bulgaria PM: Businesses Limit Investment, Fearing GERB Return to Power Bulgaria's Prime Minister Plamen Oresharski, photo by BGNES

Attempts to exacerbate the politically instability in Bulgaria continued to erode the trust of businesses and households, according to Prime Minister Plamen Oresharski.

Speaking Saturday during a seminar of the ruling socialist party in Borovets, Oresharski drew attention to the complex environment in which the socialist-led coalition government was functioning.

Oresharski , as cited by the government's press office, suggested that the option of a return to power of former ruling party GERB (Citizens for European Development for Bulgaria) made the majority of economically active persons refrain from investments and substantial expansions of business activity, adding that it also applied to foreign investors.

"Weak responses to domestic demand also suggest insufficient consumer confidence, which is another economic growth factor," he added.

Oresharski went on to say that the administration had been repeatedly subjected to political pressure and kept restraining its activity.

"We are all convinced that the unnecessary administrative burdens are a major inhibitor to the business climate and economic growth," Bulgaria's Prime Minister declared, adding that laws and secondary legislation on the matter had to be amended as soon as possible.

As regards the next steps on the government's agenda, he said that the Cabinet would continue efforts aimed at improving the business environment, as well as seek to boost the efficiency of revenue collection, to finalize the Partnership Agreement with the European Commission for the 2014-2020 programming period and to launch projects under new operational programs, to curb unsustainable practices in education and redirect policies towards students, to fight for increasing the efficiency of rule-of-law activities, to implement reindustriualization policies,to streamline the administration and implement e-government.

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Tags: Plamen Oresharski, Bulgarian Prime Minister, Socialist-led government, Bulgarian Socialist Party, red tape, administrative burden, GERB, Citizens for European Development of Bulgaria, e-government
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» To the forumComments (8)
Intelligence - 18 Mar 2014 // 13:32:07

Man, after reading John Doe's informative post I can understand why we have people like Optimistic and Yane say the things they do..........

John Doe - 18 Mar 2014 // 12:27:30

@OMG, I do run a couple of buisnesses in BG.
Let me run it down for you:
1) Faster return of VAT is nice, but not a game turner
2) I have yet to see one government branch that works more professional than 3/7/11 years ago.
3) The majority of the Bulgarian labor force has no skills, the exception confirms the rule. And all plans of the current government I heard so far are a joke.
4) More than 50% of the population is the facto analphabetic. More worrying; 40% of students leaving high school can hardly understand what they are reading.
5) I avoid getting in contact with government officials; they are a waste of time. They have no clue about their supposed work. All they are really good at, is waiting for handouts.
6) Reindustrialization of Bulgaria is a nice catch phrase, but who will be working the high qualified jobs. If you don’t believe me go to one of the technical gymnasiums or even university, I even offer you a napkin for your tears.
I don’t know where you look at, but I don’t see any improvement, that really helps Bulgaria and its peoples.

Riichie - 17 Mar 2014 // 14:35:18

@OMG: at least one (myself). But I agree with you that sending Djankov to Russia was a good idea, and the improved VAT refunding is a positive accomplishment of this government (can't think of any other, though).

dabu - 17 Mar 2014 // 00:13:19

This business person will say "last one out, turn off the lights!" The turnstyles are spinning in the direction of the exit.

OMG - 16 Mar 2014 // 22:18:10

How many business owners have replied on this topic so far?

Could it be that will be around the magic number of zero?
Because people doing business would know that the business climate has shown drastic improvements since Djankov was send to Russia. Only the speeding up of VAT refunding made already a huge difference.

Riichie - 16 Mar 2014 // 20:45:51

More likely that businesses limit investment because they are waiting for GERB to return to power...

Behemoth - 16 Mar 2014 // 18:21:05


"all businesses"? Wow, you really asked them all? I am impressed, lol.

Honestly you haven't got a clue regarding business people in Bulgaria. Boyko is a moron but compared to the present government he seems now to most business people as the smaller evil. And regarding foreign investors: the will reconsider their engagement in Bulgaria and many of them will reduce or give up following the wave of xenophobic slurs of government members and laws that are introduced to discriminate foreigners, even when they are EU citizens and entitled to legally non-discriminatory treatment. Being branded as crooks and tax fraudsters by the present Prime Minister and being not allowed to buy land are just two of the many outrageous and destructive decisions of this idiotic government that likes to place mutra, prostitutes, convicted criminals, Russian spies and chalga singers in key positions and that depends completely from the mercy of a dangerous nutcase that is financed by the Big Brother in the Soviet Union (I am referring to Russia as the Soviet Union from now on).

Agent Piccadilly - 16 Mar 2014 // 13:44:47

Oresharski is right - all businesses in Bulgaria are terrified of a return to power of GERB fascists and this is stopping them from investing in the country. The parliament should immediately outlaw GERB and all other political parties apart from the BSP - this would ensure a return to democracy and provide businesses with the confidence to invest billions of $'s in Bulgaria.

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