Bulgarian teachers' trade unions and the education ministry failed to reach an agreement on the wage rise demands at their first meeting in months.

The cabinet's offer was a 15% increase in January and another 15% in July next year, but the teachers demanded 25% hikes in October, January and July, which would almost double their wages, now averaging at BGN 440 (EUR 226), according to government data.

The teachers have also rejected the cabinet's plans to introduce performance-based pay, delegated budgets in all schools across the country and imposing ban on transferring money from the education system to other spheres.

The syndicates said that according to their calculations the savings in the education sphere in 2007 are set at BGN 68 M and demanded that this money should be allocated for paying higher salaries to the teachers.

For his part, Minister Valchev said such calculations are rough and incorrect.

"If there are some savings, I will fight for giving them to the teachers," the minister added.

The next meeting between the Education Ministry and the teachers' syndicates are scheduled for Sunday, October 7.

Asked if the ministry is to offer a new agreement to the teachers, Minister Daniel Valchev said he rather expects changes in their demands.

The double wages demands have caused the teachers to go on strike last week, bringing the school year to a grinding halt.

Friday talks came one day after the two sides met President Georgi Parvanov, a meeting that brought little progress, as participants said afterwards.

It would cost Bulgaria's cabinet around half a billion levs to satisfy the teachers wage demands, but with a growing current account deficit, it can hardly afford to spend its budget surplus on wage hikes, which will further fuel the external imbalances.

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