site.btaBulgaria Prioritizes Economic Relations with Germany - Economy Minister in Berlin

Bulgaria Prioritizes Economic Relations with Germany - Economy Minister in Berlin

Sofia/Berlin, October 12 (BTA) - Opening the 9th Session of the Bulgarian-German Cooperation Council in Berlin on Monday, Economy Minister Bozhidar Loukarski said: "Bulgaria sets a priority on developing its trade and economic relations with Germany. The proof of Germany's importance as a leading foreign trade partner of Bulgaria is the ever growing number of German companies operating in the Bulgarian market."

The Economy Ministry quoted Loukarski as saying that after an agreement was reached on the Kloesters-Cemeko case and the Federal Government's investment guarantee for projects in Bulgaria was restored, German companies have been showing an increased interest in Bulgaria.

The case involved a failed investment project for the construction of a plant at Kremikovtzi, for which the Federal Government furnished an investment guarantee. Kloesters Beteiligungsgesellschaft mbH of Kempen became a partner in the Cemeko project company in 2005. An environmental impact assessment authorization for the construction of the facility was not received until 2008, when the German company withdrew from the project. Under an agreement reached between the Bulgarian Ministry of Economy and the Federal Ministry of Economics and Energy, Bulgaria undertook to pay Germany a claim to the amount of 2,093,352 euro. Under the agreement with Kloesters, the German company renounced the laying of additional claims for compensation against Bulgaria in the Cemeko case.

Uwe Beckmeyer, the Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Energy, who is the German co-chairman of the Council, expressed a hope that the Council would help to make Bulgaria even more attractive for German investments. A clear course towards reform with the help of the EU's Structural and Cohesion Funds can help to strengthen Bulgaria's role as a stability factor in the region. He also said that Bulgaria is of a great importance to Europe's energy projects. Beckmeyer stressed Germany's readiness to help Bulgaria introduce the dual education system so that young people would stay in their country and develop its economy.

The participants in the 9th Session discussed aspects of energy efficiency, agriculture and the food industry, e-government, trade, small and medium-sized enterprises (SMEs), education and tourism.

At a meeting of the working group on agriculture and food industry within the Council, it was proposed that the Bulgarian agricultural produce receive a German quality sign. It was also decided that a contact group on production cooperatives be established.

In the sphere of tourism, the German side recommended that Bulgaria strengthen the popularization of the Thracian heritage as an attractive tourist product, as well as the opportunities for the development of cruise tourism. The two sides agreed to strengthen the cooperation in the advertising of Bulgarian tourist products on the German market.

The two sides confirmed the agreements reached at a meeting of the working group on energy one month ago, concerning the cooperation and exchange of experience in the preparation of the regulatory policy in the energy sector and, more specifically, the liberalization of the gas market.

In the sphere of information technologies, the two sides agreed to cooperate in the introduction of the digital single market and e-government.

The two sides also discussed the guaranteeing of the just participation of Bulgarian and German SMEs in bidding procedures and competitions.

At a meeting of the working group on infrastructure, it was proposed that a contact point be created at the Bulgarian Transport, IT and Communications Ministry for German investors in infrastructure. It was also proposed that the experience of Deutsche Bank in working with the State be used. The Transport Ministry presented its concession programme and reached an agreement with the German side on partnership in the development of port infrastructure.

Prior to the start of the 9th Session, Minister Loukarski attended the signing of a Letter of Intent between the Bulgarian Development Bank (BDB) and the KfW Development Bank, related to the preparation of a loan agreement to the amount of 100 million euro for the funding of the Bulgarian National Energy Efficiency Programme (2015-2016). BDB Executive Director Bilyan Balev and Ingrid Hengster, member of the KfW Executive Board, signed the document.