Meeting with representatives of BSP
The Confederation of Employers and Industrialists in Bulgaria (CEIB) organised a meeting between bilateral chambers of commerce and associations and the economic team of the Bulgarian Socialist Party (BSP). BSP representatives Ivan Krastev and Nina Dimitrova outlined the following priorities in their economic program, some of which significantly distinguish them from their sister left-wing parties in Western Europe:
- A principled pursuit of fiscal discipline and control of the debt spiral in the short to medium term. The costs of servicing the state debt are already high and could be far more useful if the same funds were directed to social activities.
- Introduction of a progressive tax system with a non-taxable minimum, with the higher rates affecting about 70,000 people. The reform aims to reduce inequalities in Bulgaria (CEIB expressed disagreement with such a step, which would erode the only stable competitive advantage of the Bulgarian economy – at the same time, inequalities are a long-term problem for the functioning of democracy and capitalism, for this reason, CEIBfocused on steps to brighten the housing market and curb the displacement of young Bulgarians from it).
- Initial review of the remuneration model in the public sector, including a change in the “automatics” that failed the adoption of the 2026 budget and are a major threat to the stability of public finances today
- Better tripartite dialogue and urgent achievement of a new model for setting the minimum wage
- Focus on regional policies, which are also an effective tool for reducing inequalities in Bulgaria
- Reform of financing in secondary and potentially higher education. The advantages of delegated budgets were outlined, and the “money follows the student” model was identified as the main problem.
- Controlling food and fuel prices in the short term by introducing temporary price ceilings and/or profit levels, as are known in several European countries (business expressed disagreement with such measures, since Bulgaria is a small consumer market and is at real risk of supply chain disruption).
Business representatives and the Bulgarian Socialist Party saw opportunities for consensus on many of the priorities, while significant disagreements remained only regarding tax policy and short-term measures to control food prices until the end of the conflict in Iran. The following cases were discussed in more detail:
- Problems in territorial expert medical committees and personal assistants. In this niche of social assistance, the state spends about 4.3 billion euros annually. The number of registered persons and their annual growth are unrealistically high, a consequence of abuses and too easy access to the system. Business and BSP representatives have calculated that soon, about 1/3 of the budget deficit will represent undeserved social payments in this direction, and this will gradually become a central threat to financial stability. Unfortunately, the longer this problem is postponed, the more difficult its solution becomes politically, since the income resulting from abuses is perceived as replacing or supplementing income from work. Business expressed its readiness to lead the public presentation of effective solutions.
- The challenges of retaining existing and attracting new industrial investments in the regions, which are the only instruments for reducing inequalities. The administrative burden falls disproportionately high precisely on industry compared to the service sector, but the latter is highly developed in the capital, and this is a driver of internal migration and depopulation of parts of the country.
- The BSP supports the import of workers from third countries for seasonal work, which is particularly important for tourism, but the party’s vision is for the one-year Permit to target highly qualified personnel
- Consensus on containing energy prices, a consequence of the Middle East crisis, and continuing proven energy compensation schemes
- Reform of the ETS
- One textbook in primary and secondary education, and revising the content so that it is accessible and understandable for students
- Update the Labour Code to retain workers in modern digital business models in Bulgaria as a jurisdiction. Business and the BSP have recognised the transfer of thousands of such employees to other jurisdictions, even if they physically work from Bulgaria, as a potential source of huge lost benefits for the social security system. The BSP agreed with the need to modernise the working conditions, which are inadequate and inapplicable to modern hybrid work, but did not agree with the reforms proposed by the business to make it easier to dismiss employees.
- Wider introduction of collective bargaining through positive incentives for employers and workers
- Wider introduction of food vouchers and analysis of the possibilities for introducing sports vouchers
At the end of the conversation, the possibilities for ensuring Bulgaria’s energy independence in the long term were also discussed, with the BSP looking positively at measures to extend the life of coal-fired power plants and the exploration of local natural gas deposits, but currently remaining against the exploration of shale gas deposits. Business and the BSP united around the growing problems that Toplofikatsia Sofia creates for the stability of the energy system, although no consensus was reached on solutions.
Meeting with representatives of GERB-SDS
The Confederation of Employers and Industrialists in Bulgaria organised a meeting between foreign chambers of commerce and associations and the economic and legal team of the GERB-SDS coalition. The coalition representatives, Vladislav Goranov, Georgi Georgiev, and Alexander Ivanov, outlined the completed reforms under the Zhelyazkov cabinet, especially regarding entry into Schengen and the Eurozone, and the “rescue” of funds under the National Recovery and Resilience Plans. Regarding basic principles in the economy and business environment, GERB-SDS declared readiness to uphold the following in the next parliament:
- Fiscal stability and striving for balanced budgets
- Removing “automatics” in determining remuneration from all special laws
- Preserving the tax and social security model and rates in Bulgaria, as this will be a red line for GERB-SDS when forming a potential future coalition government
- Completing the steps required for Bulgaria to exit the “grey list” for money laundering
- Continuing reforms in the judiciary, especially in terms of digitalisation and balancing the workload by region
- Ensuring a clear and predictable regulatory framework for business that adapts to modern economic models
The discussion was particularly in-depth regarding the “grey list” for money laundering, which was the main focus of the business representatives. CEIB emphasised that it is increasingly becoming an insurmountable barrier to opening bank accounts for Bulgarian entrepreneurs and international companies abroad. GERB-SDS expressed their hope and confidence that with political stability and effective governance, Bulgaria can be removed from the list in the second half of 2026, as 24 out of 25 commitments have been fulfilled, including all required regulatory changes. At the request of business representatives, GERB-SDS presented their specific ideas in the field of:
- Removing territorial expert medical committees from the healthcare system and delegating responsibilities to the National Social Security Institute, where, with good organisation and small public investment, much higher efficiency can be achieved (CEIB emphasised that abuses in the territorial expert medical committees system already threaten the financial stability of the country).
- Targeted measures to calm inflationary processes, a consequence of the military conflict in Iran, but bearing in mind that it is already emerging as a long-term crisis that cannot be fully controlled with fiscal instruments
- Several measures to facilitate the import of labour from third countries, including optimising the organisation of interviews by consulates, increasing staff in intensive countries, since the investment pays off predictably, and raising the allowable quota of foreign workers to 50%. The latter is especially important for the tourism sector.
- Concentrated investments in transport infrastructure and connectivity in areas with high tourism potential
- Possibility of revisions to the law on lobbying (business representatives expressed a particularly critical position on the adopted texts)
- Modernisation of the commercial law and legal stability for business, including inheritance of membership relationships, digitalisation at the level of civil and commercial cases, law on experts, and others.
- Deposit system administered by the industry
- Examining the possibilities for gradual demonopolization of the National Health Insurance Fund to increase the effectiveness and efficiency of spending and control over public resources
- Shared services between municipalities on a regional basis to optimise administrative costs
- Accelerating efforts to join the OECD
Regarding Bulgaria’s entry into the OECD and certain signals of a slowdown in the process, business expressed its concerns that the OECD sees a wavering in the management model of state-owned enterprises and, in general, the philosophy of their creation and behaviour on the market. Business representatives expressed hope for a clearer framework for the activities and more transparent management of large enterprises such as BEH, NEK, Information Services, and concessioning of loss-making enterprises such as Toplofikatsiya Sofia, which has already become a major threat to the country’s energy system. The business saw a high degree of overlap in priorities with the representatives of “GERB-SDS” as both parties declared their readiness to conduct a more effective and sustainable dialogue in the future, eliminating some of the mistakes made during the previous management term.
Meeting with Representatives of the Political Coalition Democratic Bulgaria
The Confederation of Employers and Industrialists in Bulgaria (CEIB) organised a meeting between foreign chambers of commerce and associations and representatives of the political coalition “Democratic Bulgaria” (Yes, Bulgaria and DSB). Bozhidar Bozanov, Nadezhda Yordanova, Vladislav Panev and Katya Paneva attended the meeting.
The representatives of the political coalition “Democratic Bulgaria” presented and reaffirmed the following main commitments from their program:
- Preserving the tax and social security model and rates in Bulgaria
- Abolition of “automatics” from all special laws, such as for defence, a careful approach will be taken, with a potential revision
- Reforms in the European institutions and regulatory framework based on the “Draghi Report”.
- Postponement of the entry of transport and construction into the ETS
- New formula for the minimum wage
- Maintaining compensation for electricity, but targeted and with special attention to the energy-intensive industry
- Reducing state spending and a balanced budget through aggressive measures in certain sectors, such as the abuse of TELK and personal assistants
After presenting the general policies and principles in the coalition’s program, the discussion focused on specific sectors and cases, among which the following positions of the political coalition “Democratic Bulgaria” stood out:
- Reducing the number of employees in the state administration by merging ministries and agencies, as well as by optimising and replacing human labour with artificial intelligence, where appropriate. Attention was drawn to state-owned companies with staff levels more than 4 times the average for similar companies in other European countries.
- Reducing product fees and liberalising access for new operators to the market
- Preserving the viability of the mining industry by strictly observing the deadlines for the work of institutions and shortening the deadlines for legal proceedings. It is possible to rethink the position of the responsible directorate in the institutional hierarchy. (Business noted the need for more ambition in this direction)
- Urgent measures to alleviate inflationary pressure on the fertiliser industry
- Continuing displacement of natural gas in the Bulgarian energy sector, as it creates dependence on external factors and crises (business noted that in some sectors, gas is a resource, not just fuel)
- Differentiation of social benefits and payments, and limiting most to citizens with incomes below the average wage. Dealing with the absurdity of wealthy Bulgarians receiving social benefits.
- Public Procurement Law Orders for Private Hospitals (CEIB expressed disagreement and position that these should be competitive and digital procedures)
- Infrastructure concessions with fast action for the concession of Toplofikatsia Sofia and deposits of important minerals
Business explained to the representatives of the Democratic Bulgaria Party that the majority of foreign investments are currently investments of existing businesses, which must be preserved, since the interest in new greenfield investments is relatively low.
The participants in the discussion agreed that on many of the topics, there is a unified view between the representatives of the Democratic Bulgaria Party and the business representatives and undertook to continue the consultations of their views in a similar format and details after the elections.
Meeting with representatives of the Movement for Rights and Freedoms
The Confederation of Employers and Industrialists in Bulgaria (CEIB) organised a meeting between foreign chambers of commerce and associations and the economic team of the Movement for Rights and Freedoms (MRF). The representatives of Movement for Rights and Freedoms – New Beginning, Yordan Tsonev and Iskra Mihaylova, presented and reaffirmed the following main commitments from their program:
- The party is undergoing an ideological transition and is oriented towards social conservatism
- Preservation of the tax and social security model and levels in Bulgaria for at least one full government cycle. Particular attention to pension insurance, where the system is under stress
- Elimination of “automatics” from all special laws
- Allowing budget deficits within 3%, but only if they are fully investment-oriented
- Reviewing the carbon emissions trading policy, with Bulgaria taking a proactive position
- Unified investment regime – one state project coordinator (one-stop shop policy)
- Full digitalisation of all permits and introduction of “tacit consent”
- Preparation of sites and infrastructure for large private investment projects by the state
Business representatives saw an overlap of most of the presented priorities with the current needs of investors and entrepreneurs in Bulgaria. KRIB (CEIB) expressed its concerns that even with capital investments, the deficit increases money circulation and is a driver of inflation.
The conversation also went into more detail on certain cases and sectoral policies, discussing:
- The problem with the rapidly increasing number of TELCs and personal assistants, which is now clearly unrealistic and is becoming a danger to public finances. Certain options for solving it were identified, which require broad political consensus and stability due to the scale of the challenge.
- Opportunities for public-private partnership in health insurance, which would increase the effectiveness of control over health costs.
- The need for more aggressive concessioning of land for tourism and the extractive industry, especially in mountainous regions, where Bulgaria has both proven experience and proven investors with socially responsible behaviour.
- The need for an active policy for the development of regions in which industrial production is naturally concentrated. Preserving regional universities as an anchor for maintaining vibrant regions, increasing their autonomy and differentiating between state and business procurement.
At the end of the conversation, the energy crisis caused by the mismanagement of certain assets and the war in the Middle East was also discussed. DPS agreed with the business on the need for rapid measures to support the transport sector and compensation for electricity, as well as a focus on the Maritsa East mine and Sofia District Heating Company, where public-private partnerships seem to be the only possible solutions to the drastic crises.
Meeting with representatives of the Progressive Bulgaria
The Confederation of Employers and Industrialists in Bulgaria (CEIB) organised a meeting between foreign chambers of commerce and associations and the economic team of the Progressive Bulgaria, Alexander Pulev, Konstantin Prodanov and Ivan Vasilev, outlined the following priorities and key commitments in their economic programme, aimed at creating a high value-added economy based on knowledge and high technology:
- Maintaining a stable tax and financial policy with low and predictable taxes while strengthening incentives for reinvestment and R&D. A principled pursuit of fiscal discipline and containing the debt spiral in the short to medium term;
- Maintaining sustainable levels of public debt and its targeted use to support the country’s investment policy. The budget deficit should be used as a counter-cyclical tool – a balanced budget during times of economic growth and transitioning to a deficit only during a crisis;
- Reviewing the remuneration model in the public sector, including a change in “automaticity” as a major threat to the stability of public finances today;
- Creating conditions for attracting and retaining high-skilled specialists, including Bulgarians from abroad;
- Accelerating the digitalisation of the administration and promoting the implementation of Artificial Intelligence (AI) in the public sector, business, and education;
- Stepping up efforts for OECD accession as a hallmark of high governance standards and economic stability;
- Completing the necessary steps for Bulgaria’s removal from the “grey list” for money laundering;
- Strengthening the rule of law and continuing judicial reforms, particularly regarding digitalisation and balancing the workload across districts;
During the discussion, business representatives and “Progressive Bulgaria” discussed in detail a number of instruments that can be implemented to achieve these principles, including:
- Implementation of full programme budgeting in the “General Government” sector to achieve structural budget balance;
- Reducing the administrative burden on business through a single digital portal for permits, reducing licensing regimes, and introducing the principle of “silent consent”;
- Promoting patent activity, intellectual property (IP) protection, and innovation development to transition from a model based on low labour costs to one based on knowledge and technology (CEIB noted that updating IP regulations is crucial for retaining intellectual property created by Bulgarian entrepreneurs within Bulgaria as companies grow and internationalise);
- Unified investment regime – a single state project coordinator (“one-stop-shop” policy);
- Establishment of a central coordination unit under the supervision of a relevant Deputy Prime Minister to manage the processes of structuring, negotiating, financing, and executing strategic investment projects;
- Focus on regional policies as an effective tool for reducing inequalities in Bulgaria – especially through the development of tourism and industry. For the latter, improving transport infrastructure is of particular importance;
- Full transparency in public procurement and public spending: public registers, open data, clear evaluation criteria, and traceability of execution;
- Measures to curb inflationary processes resulting from the military conflict in Iran, considering it is emerging as a long-term crisis that cannot be fully managed by fiscal instruments alone;
- Consensus on managing energy prices resulting from the Middle East crisis, maintaining electricity compensations, but ensuring they are targeted with special attention to energy-intensive industry;
- Updating the Labour Code to retain employees within modern digital business models in Bulgaria;
- Opportunities for public-private partnerships (PPP) in health insurance to increase the efficiency of health expenditure control;
- Regarding the reduction of inequalities, which are a long-term challenge to the functioning of democracy and capitalism, CEIB highlighted steps to bring the housing market out of the grey economy and curb the displacement of young Bulgarians from it. This measure is expected to be better received by Bulgarian society and more effective in the long run than transitioning to progressive taxation and increasing the overall tax burden.
The participants in the discussion agreed that on many of the topics, there is a unified view between the representatives of the “Progressive Bulgaria” coalition and business representatives and undertook to continue the consultations of their views in a similar format and detail after the elections.
We would like to extend our thanks to CEIB for inviting us to join the meetings and to BBCC board members Diana Pazaitova and Kamelia Slaveykova for their participation.
