Alasdair Ross, Countries Editor, “The World ahead 2024”
Alasdair Ross, The Economist’s countries editor, set the tone for the conference by presenting The Economist’s forecast for 2024. Projections indicate a global growth rate of approximately 2.2%, a significant improvement from the previous year, driven largely by the Asia-Pacific region. Growth dynamics are shifting from China to India, while Eastern Europe is poised for better growth than Western Europe, with countries like Germany and France to edge toward recession. Bulgaria stands out at the top end of forecasts for Eastern Europe.
In the United States, the outcome of the upcoming elections is already being priced in. The forecast suggests favourable chances for president Biden, with an improving economy and job market working in his favour.
Turning to European elections, projections anticipate political extremes on both the right and left to gain ground, collectively securing about one-fifth of the vote. However, the landscape is expected to be fragmented, ensuring that the centre-left and centre-right maintain control. Ursula Von der Leyen is likely to be reelected, but will be more beholden to parties on the far right.
In China, President Xi Jinping faces the challenge of delivering on citizens’ growth expectations, while the wider geopolitical landscape, shaped by conflicts in Gaza, Israel, and Ukraine, will drive public opinion in diverse directions. A frozen conflict is anticipated to persist in Ukraine, with no immediate resolution in sight. In Gaza, Israel is projected to prevail militarily, Alasdair Ross noted concluding his presentation.
Rumen Radev, president of Bulgaria
President of Bulgaria Rumen Radev discussed how projections of the country’s economic growth will materialise, stressing its increasing industrialisation and commitment to environmental sustainability. Corporate social responsibility and investments in human capital were highlighted as key components of Bulgaria’s development, and play a role in its businesses’ flexibility and adaptability. Foreign investments totaled 1.5 billion last year, but challenges persist, including demographic imbalances and the need for a long-term energy strategy, he said. Rumen Radev mentioned that the country is lagging behind European integration and convergence and urged efforts to improve rankings in certain indices, such as the media freedom index, to attract more and better investments from inside and outside the country. The president also emphasised the need for high-quality institutions and to leverage Bulgaria’s competitive advantages, while outlining plans to remove bureaucratic hurdles in energy interconnections with neighbouring countries like Greece. Addressing foreign policy, president Radev expressed the opinion that Bulgaria can support negotiations and diplomatic efforts in the context of Russia’s war against Ukraine.
Mariya Gabriel, deputy prime minister and minister of foreign affairs of Bulgaria
The country’s priorities for 2024 with an emphasis on dialogue and continuity were outlined by Mariya Gabriel, Bulgaria’s Deputy Prime Minister and Minister of Foreign Affairs. Bulgaria aims to maintain its role as a reliable regional partner and is committed to ensuring political stability, she said, and affirmed her government’s intention to continue its support for Ukraine, mentioning that joining the Schengen is a key step toward enhancing security and sustainability within the Schengen space. The deputy prime minister also emphasised the importance of innovation in Bulgaria’s strategic relations with the United States and Europe and advocated for supporting high-performing regional companies. Innovation is a key topic, and Bulgaria should seek partnerships with countries that share strategic interests, including in the Middle East and Africa, she noted. Bulgaria should develop its own foreign policy strategy, a result of public consensus, shaping the nation’s identity not just for 2024 but over the next decade. Mariya Gabriel was optimistic that Bulgaria can join the euro area by the end of 2024 and called for building Bulgaria’s image abroad through strategic cooperation and dialogue. Bulgaria’s ruling coalition can be kept together by working on common priorities and projects, including Schengen membership and joining the euro area by the end of the year, as well as supporting Ukraine, she said.
Vassil Terziev, mayor of Sofia
The pivotal role of technology and AI in shaping the city’s future was highlighted by Mayor of Sofia Vassil Terziev. Sofia is actively exploring the implementation of AI in waste and water management, sustainability, urban mobility, and security, requiring substantial investments to transition into a smart city, he explained. Prioritising technology, the city aims to leverage citizens’ feedback to enhance services, engage in decision-making, and address urban challenges. Vassil Terziev emphasised the need to lift administrative barriers for businesses and advocated for investments in education to enhance technological literacy. Responding to a question about the low presence of digital nomads, the mayor noted the untold success story of Sofia’s strong fundamentals and thriving startup ecosystem. Regarding equality, the focus is on improving public transport to reduce car usage, aligning with the city’s commitment to sustainable urban development.
Saša Marković, general manager, Coca-Cola HBC Bulgaria
Saša Marković, general manager of Coca-Cola HBC Bulgaria, focused on his company’s commitment to sustainability. Coca-Cola’s focus is on solutions aligned with green goals, targeting a significant reduction in emissions across the supply chain by 2040 and aiming to collect and recycle all packaging globally by 2030. Despite a decrease in absolute emissions, global carbon emissions have risen, he noted. Nevertheless, the company has already invested 17 million leva in the green transition of its Bulgarian operations, with plans to double this investment in the coming year. Mr Marković outlined local achievements, including a 30% reduction in direct carbon emissions and both plants operating with 100% green electricity consumption since 2023.
Demian Pintos, general manager, Philipp Morris Bulgaria
Demian Pintos, general manager of Philip Morris Bulgaria, referred to a need to recognise and attract Bulgarian talent from abroad who are eager to repatriate. Focusing on sustainability, the company’s primary goal is to transition people away from cigarettes, with alternative solutions provided for those who do not wish to quit entirely. Demian Pintos highlighted that over 28 million users globally are currently using their main smoke-free alternative and nearly 21 million from them have switched to it and have stopped smoking completely. Sustainability is embedded in every aspect of the business, evident in their collaboration with a startup to address cigarette butt littering in the city, he said. Responding to a question about vape litter, Mr Pintos clarified that Philip Morris Bulgaria does not currently have a vape business in the country. To address environmental concerns, he stressed the importance of adopting circular product principles, using reusable and recyclable materials, and encouraging long-lasting product designs. There is a need for partnerships with the government and industry to expedite these initiatives, he noted.
Tsvetanka Mintcheva, CEO and chairperson of the management board, UniCredit Bulbank
Tsvetanka Mintcheva, CEO and chairperson of the management board at UniCredit Bulbank, talked about the pivotal role of banks in driving sustainable development, outlining several reasons why banks and the financial sector are crucial for sustainable development. The role of banks now extends beyond financing, requiring an understanding of customers’ businesses to advise on transitioning to a green economy, she said. Banks excel in risk management, and failure to comply with the EU’s transition plan could lead to significant financial, legal and reputational risks for them, according to Ms Mintcheva. Banks are also adept at managing data, which is important to prevent greenwashing, and they play an additional vital role in providing employment and supporting vulnerable groups through initiatives like educational schemes, she highlighted – among others.
Jesus Caballero, CEO, Sofia Airport
Jesus Caballero, CEO of Sofia Airport, outlined the company’s ambitious project aimed at decarbonising the airport by 2036, which is financially supported by UniCredit and other banks and reflects a substantial investment of almost 70 million euros. The initiatives include the installation of solar panels, transitioning to electric vehicles, and adopting digitalisation measures, positioning Sofia Airport among the top 10 in Europe for emissions reduction. Jesus Caballero also emphasised the airport’s initiatives in terms of talent development and retention, for example through their collaboration with the Technical University of Sofia and by organising job fairs. In the realm of technology, the airport is deploying AI in its security operations and using chatbots to enhance customer service, he mentioned.
Galya Dimitrova, managing partner, IRIS Solutions
Galya Dimitrova, managing partner of IRIS Solutions, highlighted the transformative impact of the open banking directive PSD-2 in the EU. Galya Dimitrova pointed out the growing trend of open banking in Europe, particularly with the new rule mandating instant euro payments by 2025, which is expected to drive increased adoption. With over 90 million open banking users projected in 2024, the focus has shifted to enhancing financial and digital literacy and introducing these services into the public sector. In response to a question about AI challenges, Ms Dimitrova noted that open banking gives data ownership back to the people to manage and share as they wish.
Michail Petrov, CEO, Schwarz IT Bulgaria
Michail Petrov, CEO of Schwarz IT Bulgaria, referred to debates about AI at the Davos Economic Forum, highlighting the significant increase in AI capacity and parameters used, resulting in a global chip shortage and some countries restricting sales of semiconductors. Stakeholders at Davos unanimously viewed AI as the new steam engine, providing a competitive advantage for those who integrate it more effectively into their systems, he said. While Michail Petrov acknowledged the potential for AI misuse, such as through deep fakes or vote manipulation, he said the opportunities offered by AI far outweigh the potential damages.
Sofiya Kalinova, barrister-at-law, Ireland, board director, Irish Deaf Society, member, EUD’s Deaf Lawyers Group
Sofiya Kalinova, barrister-at-law in Ireland and board director of the Irish Deaf Society, shared her journey as a deaf individual pursuing a legal career. Facing discrimination in Bulgaria due to a hearing component in the exam, she successfully defended her right to take the test. In Ireland, government-funded programmes allowed deaf individuals to study freely, and she was eventually able to pass her exams in sign language. Sofiya Kalinova highlighted the need for more inclusive policies, citing limitations in Bulgarian law for sign language interpretation, as well as the importance of investing in education, early programmes for sign language use, and creating an inclusive job market for everyone, including people with disabilities.