site.bta Grey Economy in Bulgaria Estimated at 32 Per Cent

Grey Economy in Bulgaria Estimated at  32 Per Cent

Sofia, February 16 (BTA) - Bulgaria is the EU member state with
the highest share, 32 per cent, of the grey economy in the Gross
Domestic Product, former leader of the Confederation of
Independent Trade Unions in Bulgaria (CITUB) Krustyo Petkov told
a news conference Monday. Petkov said that the grey economy has
grown, instead of diminishing, during the crisis.

On a global scale the grey economy is 40 per cent and has a
turnover of more than 20 trillion U.S. dollars, he said. India
is the world leader in the grey economy where it is 92 per cent.


Petkov said that the measures to eliminate the grey economy in
Bulgaria include the introduction of vouchers for social
services, increasing the minimum salary and negotiating its
increases by sectors, via collective bargaining, which give more
rights and a secure income to employees.

CITUB President Plamen Dimitrov said that the trade union and
employers are working on a joint opinion on how to formalize the
informal economy. He said that in June the International Labour
Organization is expected to adopt a recommendation to provide
better regulation and a clearer definition of who is who in the
informal economy so that they can be helped. The aim is for
employees in the grey economy to have an opportunity to
negotiate about the working conditions and the pay, to have
access to small loans and to achieve a more formal, visible and
worthy employment, he said.