How many Times were Diplomatic Relations between Russia and Bulgaria Severed
If we look at history, there are not many cases in which relations between Bulgaria and Russia at the state level were as bad as they are at the moment.
Businessman Hristo Kovachki: We Need More Clarity in Euro Funds Absorption
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Photo by Nadya Kotseva (Sofia Photo Agency)
The businessman Hristo Kovachki, considered to be one of the wealthiest Bulgarians and informal leader of the newly founded Liberal Initiative for Democratic European Development (LIDER) Party, spoke before Darik radio about the future of the party, the need for more transparency and better work in order to absorb Euro funds, and the fact that the biggest electric power distribution companies could be in debt to the Bulgarian Energy Industry
Darik: What do you think about the idea of the Head of the State to bring changes to the election Law and especially to bring a halt on party financing by legal entities?
Kovachki: I give him credit for fact that he is talking about those things since we all witness how in reality, during election times, some not so good things happen, how some gamble with financial stimuli to entice people to vote for certain parties.
Darik: Do you have the buying of votes in mind?
Kovachki; Yes. I think that we must think about this issue and create the entire policy and philosophy regarding political parties financing with maximum clarity and transparency. I think that the LIDER Party would seriously participate in the debates related to all of the President's proposals. I believe that this would be useful for our society.
Darik: With whom at election time?
Kovachki: My wish is for LIDER to enter in coalition with VMRO and the Agrarian People's Union and I believe that this process is now on a very serious level and things are moving forward quire well since local elections demonstrated that together the three parties could achieve much better results than on their own.
Darik: Why with those two parties? Why not with GERB (Citizens for European Development of Bulgaria) for example or some of the other, bigger political parties?
Kovachki: One has to join those who are equal. At the moment, the biggest political forces, I think, would look a little bit down on LIDER and it is only normal that in such situation one searches for equal partners. As far as other smaller parties, I believe that they could be affiliated to our coalition, but is all a matter of time.
Darik: Why up till now, the business parties have not been successful? What is LIDER's destiny going to be?
Kovachki: LIDER does not see itself as a business party. LIDER is seen as a party to defend the interests of the most active part of the population, mostly of the emerging middle class. If LIDER is going to develop as a party expressing the interests of particular economic structures, I would be the first one to withdraw. What I wish for is for the Party to express the interest of a large group of people, to lead a policy contributing to the development of our society and to prove useful to the society. I do not wish that the LIDER project would last for one mandate or four years. I wish that it turns into a long-term project really useful to Bulgaria.
Darik: What is your position regarding the scandal around the Euro funds absorption? What is the successful economic and political structure to deal with this problem's resolution?
Kovachki: I wish to tell people hoping for the absorption of a big Euro funds percentage, that even Germany has absorbed only 40% of them so far. An average of 40% to 50% of the Euro funds have been absorbed by the big European counties and this is statistics. The fact that problems between the EU and our Cabinet exist is not good for us, but I think that we must work to resolve this issue and we should not see it as something fixed, as something that would remain constant. I think that with good work and better transparency, better possibilities to absorb the Euro funds would be created. The main thing, I believe, is for the Cabinet to create conditions to allow the receiving of more information both by the municipalities and the individual economic subjects and that the strictly administrative obstacles for those procedures must be better explained. There is lots of darkness in this entire process i.e. things are not clarified well enough to people and this created problems with the Euro funds' abortion and further tension regarding this situation.
Darik: Don't you see the situation regarding the electric power prices determination as quite absurd? There is political pressure on one side to keep it at the same level, however, in the same time the electric power companies insist that they would receive a very small percentage as profit from such increase?
Kovachki: The problem is that the electric power distribution companies are in debt to our Energy industry. For the last four-five years they maybe have been working with a norm of return in the vicinity of 16%. In addition, I believe that they do not conduct a good enough investment policy and as result we all see that there are many problems in the electric power supply and in the entire electric power distribution network. I think that right now the fact that such big companies such as CEZ and EVN own the electric power distribution network had not drastically changed its status i.e. a state owned company, which used to be entirely Bulgarian property was replaced with another state company, Austrian or Czech, but the management methods have remained the same.
Darik: What do you think about the idea of the Head of the State to bring changes to the election Law and especially to bring a halt on party financing by legal entities?
Kovachki: I give him credit for fact that he is talking about those things since we all witness how in reality, during election times, some not so good things happen, how some gamble with financial stimuli to entice people to vote for certain parties.
Darik: Do you have the buying of votes in mind?
Kovachki; Yes. I think that we must think about this issue and create the entire policy and philosophy regarding political parties financing with maximum clarity and transparency. I think that the LIDER Party would seriously participate in the debates related to all of the President's proposals. I believe that this would be useful for our society.
Darik: With whom at election time?
Kovachki: My wish is for LIDER to enter in coalition with VMRO and the Agrarian People's Union and I believe that this process is now on a very serious level and things are moving forward quire well since local elections demonstrated that together the three parties could achieve much better results than on their own.
Darik: Why with those two parties? Why not with GERB (Citizens for European Development of Bulgaria) for example or some of the other, bigger political parties?
Kovachki: One has to join those who are equal. At the moment, the biggest political forces, I think, would look a little bit down on LIDER and it is only normal that in such situation one searches for equal partners. As far as other smaller parties, I believe that they could be affiliated to our coalition, but is all a matter of time.
Darik: Why up till now, the business parties have not been successful? What is LIDER's destiny going to be?
Kovachki: LIDER does not see itself as a business party. LIDER is seen as a party to defend the interests of the most active part of the population, mostly of the emerging middle class. If LIDER is going to develop as a party expressing the interests of particular economic structures, I would be the first one to withdraw. What I wish for is for the Party to express the interest of a large group of people, to lead a policy contributing to the development of our society and to prove useful to the society. I do not wish that the LIDER project would last for one mandate or four years. I wish that it turns into a long-term project really useful to Bulgaria.
Darik: What is your position regarding the scandal around the Euro funds absorption? What is the successful economic and political structure to deal with this problem's resolution?
Kovachki: I wish to tell people hoping for the absorption of a big Euro funds percentage, that even Germany has absorbed only 40% of them so far. An average of 40% to 50% of the Euro funds have been absorbed by the big European counties and this is statistics. The fact that problems between the EU and our Cabinet exist is not good for us, but I think that we must work to resolve this issue and we should not see it as something fixed, as something that would remain constant. I think that with good work and better transparency, better possibilities to absorb the Euro funds would be created. The main thing, I believe, is for the Cabinet to create conditions to allow the receiving of more information both by the municipalities and the individual economic subjects and that the strictly administrative obstacles for those procedures must be better explained. There is lots of darkness in this entire process i.e. things are not clarified well enough to people and this created problems with the Euro funds' abortion and further tension regarding this situation.
Darik: Don't you see the situation regarding the electric power prices determination as quite absurd? There is political pressure on one side to keep it at the same level, however, in the same time the electric power companies insist that they would receive a very small percentage as profit from such increase?
Kovachki: The problem is that the electric power distribution companies are in debt to our Energy industry. For the last four-five years they maybe have been working with a norm of return in the vicinity of 16%. In addition, I believe that they do not conduct a good enough investment policy and as result we all see that there are many problems in the electric power supply and in the entire electric power distribution network. I think that right now the fact that such big companies such as CEZ and EVN own the electric power distribution network had not drastically changed its status i.e. a state owned company, which used to be entirely Bulgarian property was replaced with another state company, Austrian or Czech, but the management methods have remained the same.
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