site.btaGovernment Programme on Stable Development of Bulgaria for 2014-2018 Period

Government Programme on
Stable Development of Bulgaria
for 2014-2018 Period


Sofia, January 24 (BTA) - The Bulgarian Government Friday
published on its website its governance programme entitled
Programme for Stable Development of the Republic of Bulgaria in
the 2014-2018 Period.

Public Finance

Keeping the currency board arrangement until Bulgaria joins the
Eurozone, applying for entry into the Eurozone and into the EU
Single Supervisory Mechanism for banks, transposing the EU
Directive establishing a framework for the recovery and
resolution of credit institutions and investment firms, and
establishing an entirely new resolution authority for such
institutions. The Government envisages an unchanged tax system
and the same low share of State-reallocated GDP. At the same
time, there are plans for a debate on the overall tax policy and
reforms with regard to the preferential tax treatment. It is
planned to introduce a capital gains tax after an analysis of
capital gains taxation in other EU Member States. Another
priority in this sphere is curbing the participation of offshore
companies in the Bulgarian economy. The long-awaited merger of
the National Revenue Agency and the National Customs Agency is
also included in the Programme, after an analysis of
effectiveness. The Government furthermore envisages financial
decentralization of municipalities and introduction of a
mechanism allowing them to conduct an economic policy of their
own.

Energy

Continuing the construction of the South Stream Project only in
full compliance with EU legislation, in a dialogue with the
European Commission and if the economic benefits are proved. The
Government plans a number of measures for energy efficiency,
financial stabilization of the sector and development of new
projects. In this sphere, the Cabinet prioritizes support for
and participation in the establishment of a European Energy
Union. The Energy Ministry and the Council of Ministers are
tasked with developing and adopting an energy strategy for the
period ending in 2030 and, in the longer term, until 2050, and a
National Energy Efficiency Strategy. The Government argues for
the need to keep the development capacity of the nuclear power
industry, to extend the service life of Kozloduy N-Plant Units 5
and 6, and to develop new economically effective nuclear power
projects without reliance on State aid. There are plans to elect
a new complement of the State Energy and Water Regulatory
Commission on the basis of principles guaranteeing its political
independence, to amend the Energy Act so as to safeguard the
interests of Bulgarian household and business electricity
customers in a fair price of electricity, to take actions for
the financial rehabilitation of the National Electric Company
(NEK). The Cabinet also plans to implement a large-scale
national programme for energy renovation of multi-family
residential buildings, which would cover 50 per cent of them
within two years. The Programme envisages liberalization of the
energy market, an acceleration of oil and gas exploration and
prospecting, including in the Black Sea, while complying with
the National Assembly resolution that banned use of the
hydraulic fracturing method.

Social Policy

Introducing a flexible minimum hourly wage, seeking
possibilities to increase pensions, gearing the pension reform
to the country's demographic and socio-economic profile. The
Government's priorities include promotion of responsible
parenting and support for the three-child-family model with high
intensity of the social assistance until the third child. The
Family Allowances for Children Act will be amended to this end.
A proposal to amend the Labour Code is expected to be drafted to
regulate a separate employment contract for on-the-job training
(dual education).

Education and Science

There are plans to streamline the pre-school and school
education financing, control and reporting system, with a
quality component being added to the delegated budgets system.
The Programme envisages the opening of new kindergartens and
introducing innovative organization forms for pre-school
education. Vocational school syllabi will be coordinated with
branch organizations, and hands-on training in real-life
business will be increased. Higher school financing must be
changed, with a gradual increase of the share of their State
subsidy for quality of education to at least 50 per cent and
with the introduction of State quality controls. Under the
Programme, the main fields of study in higher education are to
be identified. The key objectives include encouraging the
internationalization of higher education. The Programme
envisages setting up high-tech parks and centres for frontier
research, for innovation and technology transfer to Bulgarian
industry.

Defence

The Government Programme envisages developing a Roadmap for
Acting on the Decisions of NATO's Wales Summit, Implementation
of "Vision 2020: Bulgaria in NATO and the EU" and of the
National Programme "Bulgaria in NATO and in European Defence
2020". Developing a financially backed Armed Forces Development
Plan, setting up a defence cluster of enterprises, institutions
and trade companies to support the implementation of the
National Programme, establishing a new project-oriented model of
regional defence cooperation in Southeastern Europe. The
Government also plans to deepen Euro-Atlantic cooperation
through the adoption of a Multiannual Programme for Cooperation
with the US on an increase of the participation of the armed
forces in exercises and training events with the NATO Allies and
a tangible contribution to NATO's Connected Forces Initiative.
Measures are outlined to halt the degradation and to build and
develop defence capabilities, including through participation in
NATO's Smart Defence and EU's Pooling and Sharing. The
Programme further envisages elimination of the dependence in the
field of armament and materiel on countries which are not NATO
and EU members. The numerical strength of the Bulgarian Armed
Forces will be preserved. The nine priority investment projects
stated in the National Programme will be started, national
elements will be affiliated to NATO Force Structure
Headquarters, the cyberdefence capacity will be increased, etc.

Foreign Policy

Under the Programme, Bulgaria will become an active participant
in the decision-making process in the European Union. Regarding
NATO, measures are planned to safeguard Allies' security and
adapt the Alliance to the changed security environment, as
provided for in the Readiness Action Plan, to participate in the
NATO initiatives, to support NATO's Open Door Policy, and to
get effectively involved in the formulation of the strategic
priorities and guidelines for development of the Organization
for Security and Cooperation in Europe (OSCE). The Programme
proclaims a policy in support of the European and Euro-Atlantic
integration of the Western Balkans and Turkey with a clear
protection of the rights and legitimate interests of the
Bulgarian communities there. Defending the rights and interests
of Bulgarian citizens abroad through more effective consular
protection, effective cultural and educational policies for
expatriate Bulgarians and the historic Bulgarian communities
abroad. The priority areas include developing Euro-Atlantic
partnerships (more specifically with the US and Canada), joining
Bulgaria to the US Visa Waiver Program, maintaining political,
economic and cultural relations with the Russian Federation,
pursuing active relations with the countries of the Asia-Pacific
region, and distributing Bulgarian goods and services in
Central Asia. The Programme goals further include accession to
the Organization for Economic Cooperation and Development (OECD)
and to the European Space Agency. Measures are envisaged to
prepare for the Bulgarian Presidency of the EU Council in 2018,
to continue the campaign for Bulgaria's bid for a non-permanent
member of the UN Security Council (2018-2019) at the autumn 2017
elections, and to run a campaign for a Bulgarian nomination for
UN Secretary-General. Within the term of office of the
Government, Bulgaria will actively share in the
counter-terrorism efforts of the democratic international
community. PK/LG