site.btaBulgarian Government, AmCham Agree on Importance of Carrying through Judicial Reform

Bulgarian Government, AmCham Agree on Importance of Carrying through Judicial Reform

Sofia, March 25 (BTA) - The American Chamber of Commerce in Bulgaria (AmCham) and members of the Bulgarian government attending an annual meeting with AmCham in Sofia Friday, agreed on the importance of carrying through the judicial reform. AmCham Vice President Alex Nestor noted the good dialogue that existed last year between the organization of American businesses in Bulgaria, and the Bulgarian government, but noted that despite the efforts of the institutions, the good macroeconomics, corporate tax of 10 per cent and competitive wages, foreign investors have little trust in Bulgaria because the rule of law is not observed.

To see more foreign investment for sustained development of the economy, this problem needs to be dealt with and the judiciary must be reformed, said Nestor.

He urged the government to bring to successful completion the reform in the judiciary so as to end the oligarchic model of doing business and make the Bulgarian economy truly free.

Deputy Prime Minister Tomislav Donchev said that the government is of the same mind in respect to the judicial reform. He also said that the reform is important first and foremost for the Bulgarian people, and then for foreign investors.

Donchev also spoke about some trends which emerged in the economic development of Bulgaria in 2015, and which give food for thought and for optimism. "The reason for optimism is that despite the unchanged level of EU funding for Bulgaria, this country did not grow dependent on it. EU funding adds up to 10 per cent of public spending and 4-5 per cent of the GDP," he said.

He argued that the trends in economic development last year raise the question about the kind of growth Bulgaria has. "We have experience with high growth but not with a stable foundation to make sure this growth can be sustained for years to come."

Donchev said, however, that the quality of economic growth in Bulgaria has improved: the production of industrial goods has grown by 7.2 per cent. "We are among the first seven countries in the EU with such significant growth," he said.   

The levels of business initiative, however, remain low in Bulgaria, with a mere 5.3 per cent of people ready to start their own business, said Donchev and called this "the key problem". "We have to put enterprise back into our value system," he commented.

Representatives of AmCham said that Bulgaria has plenty of capable young people but they live away from their homeland. They suggested that Bulgaria should try to create conditions to bring them back home instead of trying to attract foreign investors.

Donchev replied that young Bulgarians who live and work abroad want more than good incomes: they want quality environment, good roads, efficient administration and lawcourts. "They don't want just one thing: they want all."

Banker Levon Hampartsoumyan asked whether a decision has been made whether or not to have chips in the new IDs that will be issued to Bulgarian citizens. "Deciding against chipping the IDs will be a sign of backward thinking and will take us back to the 20th century," he argued.

The chipped IDs were proposed by Interior Minister Roumyana Buchvarova as part of her electronic government package but the competent parliamentary committee put it on hold earlier this month.

Donchev said that no final decision has been made as yet and the debate is still on. "If we solve the problem with the chipped IDs, it does not mean that we have also solved the problem with the chip in people's heads," he commented.

Another government representative, Health Minister Peter Moskov, spoke about the progress of the health reform. He said that the procedure for electronic health services starts in the coming months after a road map for this has already been approved. Everything that the road map for electronic health care says, will be implemented by the end of this year. The financial parameters of the National Health Insurance Fund (NHIF) have improved; the infrastructure of health services is changing and the changes will be carried through despite the resistence. The NHIF will pay for results and for quality, Moskov said. 

Justice Minister Ekaterina Zaharieva urged the AmCham members to share their commends on proposed changes to the Commercial Code, which have been put up for public discussion.

Speaking about the judicial reform, she said the important thing is to make sure the quality magistrates remain in the judicial system and are offered career opportunities.

Economy Minister Bozhidar Loukarski admitted that slow administration is a bad hurdle for businesses. "We are slowly fighting with this problem, step by step, and we have taken measures to reduce the administrative burden," he added.

Asked whether the government will provide more of the so called Blue Cards - visas for highly qualified experts which are not citizens of the EU, Loukarski said that the procedure for award of Blue Cards needs to be stepped up.
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