site.btaBCCI President on Latest Bulgaria in Figures Edition, Businesses' Expectations

Bulgarian Chamber of Commerce and Industry (BCCI) President Tsvetan Simeonov commented in a BTA interview the latest edition of BCCI's Bulgaria in Figures brochure, which includes data from over two dozen international rankings on various topics. Among the topics covered are rule of law, press freedom, ease of doing business. Simeonov also talks about businesses' expectations from the new caretaker government, forecasts and hopes for the future. 

Rule of law

Bulgaria is registering a serious decline in its Rule of Law Index standing, which is a natural consequence of the unsuccessful start of the judicial system reform. This country ranked 53rd in 2020 and has dropped down to 62nd in 2021, regardless of the fact that eleven new countries have been added to the index, Simeonov said, commenting the brochure, which can be accessed on BCCI's website. Hard copies are also available in the organization's offices.

Ease of doing business

When it comes to obtaining an electricity connection, Bulgaria ranks 110th in the Doing Business Index. So many governments came and went, but could not address the question of providing quick and easy access to electricity for a newly-built company or building, Simeonov commented. 

Press freedom 

Bulgaria has made progress in the World Press Freedom Index, having climbed from 112th to 91st place, out of 180 countries. This is serious progress. It's obvious that the lack of a strong government seems to loosen the knot around media and allows them to speak more freely and openly, the BCCI President said. Bulgaria retains its 53rd place in this year's IMD World Competitiveness Ranking. This country's presence in the ranking is a success in itself as only 63 of over 200 countries are included, Simeonov commented. 

Expectations from caretaker Cabinet

According to the BCCI President, the main tasks of the recently appointed caretaker Government are to conduct normal elections, tackle the COVID-19 pandemic, the high prices of electricity and natural gas. Bulgarian businesses care little about the source of natural gas or how it gets supplied. Ensuring sustainable and sufficient natural gas supplies by the caretaker and future government is crucial for the survival of businesses. This natural gas should come at a fair price, so as to allow Bulgarian companies to remain competitive, Simeonov argued. 

Businesses have moderate expectations from caretaker Deputy Prime Minister for EU Funds Atanas Pekanov when it comes to the Recovery and Resilience Plan and the operational programmes. There's widespread disappointment, because some countries have been working with these huge funds for a year already. Bulgaria is very late now, which reduces its chances to catch up to the other countries, Simeonov said, explaining that this is why he expects Pekanov to get to work as soon as possible. 

Unemployment and inflation 

He said that unemployment is not expected to increase by this year's end because it is difficult to compensate for the workforce shortage. The shortage of qualified staff will increase the pressure to increase wages, which is additionally enhanced by the double-digit inflation in Bulgaria. Employers will have to continue reducing their profit margins, which in turn will make it difficult for them to invest in modernizing production. Another factor aggravating the situation is the ill-thought out decision, including by the last government, to increase wages in certain sectors, such as education, without achieving the preliminary goals, as well as in unreformed sectors, despite the promises to optimize the administration, the BCCI head argued. All of this results in some of the work force being pulled out from direct production into other activities. These problems are expected to increase the grey economy, which will in turn reflect on the state budget revenues, Simeonov added. 

According to the BCCI President, inflation could reach 20% by this year's end only if the international situation is seriously complicated. He expressed hope that the war in Ukraine will not spill out and efforts will be made for its peaceful end. 

Meanwhile, however, Simeonov said that there is a chance for Bulgaria to enter a recession for a certain period of time, which he hopes will be short-lived.