site.btaBulgarian Business Singles Out Corruption, Political Instability as Main Obstacles

Bulgarian Business Singles Out Corruption, Political Instability as Main Obstacles

Sofia, December 22 (BTA) - Domestic political instability had
the most adverse impact on companies' business in 2014,
according to the affiliates of the Bulgarian Industrial
Association who responded to its annual survey entitled "2014
through the Eyes of Business." The results of the poll,
conducted between December 1 and 15, 2014 among 457 company
managers and owners, were presented at a news conference on
Monday.

Merely 9 per cent of those polled found that the business
climate in 2014 improved compared to 2013, when 20 per cent
shared this opinion. A total of 26 per cent said that their
companies' economic situation improved, 47 per cent managed to
keep their performance as it was a year before, and 25 per cent
reported a deterioration.

Respondents found that crime, corruption, the grey economy and
the regulatory burden were aggravated in 2014, and access to
credit worsened slightly. The business community has the
strongest negative perception of corruption which, according to
60 per cent of those polled, increased in 2014, according to
another 33 per cent did not change, and according to none
decreased.

The interviewees found the highest level of corruption in public
 procurement (50 per cent), the judicial system (45 per cent),
the Interior Ministry/Traffic Police (43 per cent), health care
(43 per cent), customs services (35 per cent), and regulatory
schemes (34 per cent).

Among the institutions, the tax administration got the highest
marks (63 per cent). The most negative assessment was given to
the performance of the Plamen Oresharski Cabinet, and the most
positive assessment to the Boyko Borissov Cabinet. On the whole,
 the executive branch of government received an average approval
 of some 20 per cent.

Among the four key developments in 2014: the Corpbank crisis,
the natural disasters, political instability and the sanctions
against Russia, companies experienced the worst impact on their
business from the frequent change of governments and the overall
 domestic political instability.

The increase of the bank deposit interest income tax drew 88 per
 cent disapproval and 9 per cent approval. As many as 86 per
cent of the respondents took a negative view of the minimum wage
 increase in 2015. The idea to nationalize the supplementary
retirement insurance funds was supported by as few as 2 per
cent.

Expectations of next year remain unchanged compared to the 2014
survey, when 34 per cent predicted economic growth, 33 per cent
were pessimists, and 25 per cent believed that the economy would
 stay at the same level.