site.btaPodkrepa President Trenchev: State Should Raise New Debt to Restart Social Systems

118 ECONOMY-LABOUR CONFEREDATION- PRESIDENT-INTERVIEW

Podkrepa President Trenchev:
State Should Raise New Debt
to Restart Social Systems


Sofia, November 13 (BTA) - "Many systems in the state are in
collapse and we are faced with a difficult choice to inject
money and revive them through painful reforms," Podkrepa Labour
Confederation President Konstantin Trenchev said in a BTA video
interview on Thursday. Trenchev suggests that in 2015 the state
should raise new debt in order to be able to restart social
systems and carry out reforms. According to him, the funds that
will be raised should be managed by the Bulgarian Development
Bank and should be overseen by the state, the trade unions and
employers, said Trenchev.

Trenchev warned of pending protests in the energy sector because
of suspended payments. He said that the National Electric
Company has a deficit of 4 billion leva, which will increase to
6 billion leva if Bulgaria loses an arbitration case about the
Belene N-plant.

Trenchev suggested that the minimum working wage should be
increased. and that the progressive income taxation should be
reintroduced. Trenchev said that still there is no concrete
proposal by Labour Minister Ivailo Kalfin about a minimum hourly
wage.

The pension system suffers chronic deficits due to low
contributions, income concealment and aging population. Trenchev
underscored that contributions should increase, without
specifying a rate. He said that the same holds true about
medical insurance contributions which were fixed at a 12 per
cent rate as early as 2005.

Trenchev voiced a hope that the cabinet would have the courage
to take on reforms. PK/PP