site.btaMedia Review: October 20

POLITICS

24 Chasa, Trud, Telegraph, Sega, and Mediapool report that President Rumen Radev imposed a veto on revisions to the Energy Act adopted by the National Assembly on October 6. The head of State argued in his reasons that, without disputing the need to align domestic legislation to the commitments assumed by Bulgaria to the EU, the full liberalization of the electricity market for household users by 2026, as envisaged by the law, does not provide for the protection of energy-poor and vulnerable users which EU law enables and requires. Radev agrees with the need for liberalization of the market from July 1, 2024, but fears that this might increase the price for households.

On his part, Prime Minister Nikolay Denkov replied that there are mechanisms to protect households and that he hopes the President has not joined the opposition, which is trying to scare people with a "price apocalypse". There is no risk of a sharp increase in electricity prices, stressed Denkov, who was adamant that the electricity market must be liberalized and Bulgaria is significantly behind regarding the contracts it has signed and its commitments to the EU.

Sega, Trud, 24 Chasa write that in a letter to Prime Minister Nikolay Denkov, GERB floor leader Boyko Borissov and Movement of Rights and Freedoms co-floor leader Delyan Peevski questioned what measures have been taken regarding the implementation of the Agreement between the Prime Minister, Ministers, MPs and representatives of trade union organizations in the energy sector, concluded on October 3.

In their letter, the two are interested in the commitment to eliminate the project for a state enterprise that would create economic zones on the lands of the coal mines awaiting closure (with a deadline of October 31), as well as how far the Cabinet has come with the development of a new energy strategy for the country with a horizon of 2050, and the commitment not to limit the plants in the structure of the Bulgarian Energy Holding and other capacities operating on a market principle (deadline November 30). The two MPs hinted that the deal was reached thanks to them and they are its guarantors, therefore the Cabinet should inform them regularly of its implementation.

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Trud and 24 Chasa quote Ombudsman Diana Kovacheva, who was adamant the new body intended to fight domestic abuse would not be effective. Kovacheva sent a statement to Prime Minister Nikolay Denkov, in which she expressed her disagreement with the establishment of a department for the protection of vulnerable groups and interaction with civil society, which would serve as a secretariat of the National Council for Prevention and Protection Against Domestic Violence (NCPPDV). Kovacheva insists on the creation of an independent structure that will be involved in the administrative-technical, organizational, expert, and financial services and support the NCPPDV. She was adamant that the new body does not cover the set legal goal of an independent state policy in the field of domestic violence and stressed that it is inappropriate to mix areas that have their own specifics and are different from the topic of domestic abuse.

INTERNATIONAL

Trud quotes European Commissioner for Home Affairs Ylva Johansson, who said, prior to Thursday's meeting of EU interior ministers in Luxembourg, that the EC report on the implementation of the pilot project for the protection of European borders by Bulgaria and Romania was very positive. This is important for the integration of both countries in Schengen, she noted, adding that the progress of the two countries will also have a positive effect on the issue of migration to the EU. The results so far are promising, Johansson concluded.

Mediapool, Telegraph, Trud and 24 Chasa report that the European Commission is launching an investigation into a deal that allows Bulgarian gas operator Bulgargaz to gain access to supplies of blue fuel through Turkiye, amid concerns that the Bulgarian company is the only company in the European Union that has access to natural gas through the Turkish infrastructure and potentially acts as an intermediary for the raw material. According to the report, there are serious doubts about violations of competition rules in gas supplies in the country. The European Federation of Energy Traders expressed concerns about violations as early as January, when the Bulgargaz deal was announced. The reasons are a lack of transparency and illegal capacity reservation at the Turkish-Bulgarian border.

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Telegraph and Trud report of Bulgarians trapped in the blockaded Gaza strip who are trying to reach the border with Egypt in the hope that a humanitarian corridor will be opened. A grandmother of three children said in a NOVA interview that she lost contact with her grandchildren and their mother after the area where they spent the night was bombed.

Sega, Mediapool, Telegraph report that four of the sailors from the Bulgarian bulk carrier Rojen who requested evacuation from the port in the Israeli city of Ashdod, managed to return to Bulgaria. A total of 17 people remained on board the ship, 12 Bulgarians and five Ukrainians. Rojen was already half unloaded, but it is expected to leave the dangerous water area in a week at the earliest. That is why the evacuation of the crew was necessary. Earlier, the Bulgarian Navy said that there was no danger for the crew of the ship as the port was protected by the Israeli army. Subsequently, however, rockets were reported flying nearby by the ship's crew and they requested an evacuation.

DEFENCE

Mediapool and Trud quote Defence Minister Todor Tagarev, who commented on the increased activity of the Russian Federation in the Black Sea, where MiG-31s armed with Kinzhal missiles have been patrolling for several days. Tagarev called this a provocative action, but noted in the past few years, Russian aircraft have been regularly flying in this space to test the readiness of NATO's air defence forces, and there is no significant difference with the current situation. Tagarev added that Russian planes regularly fly over the Black Sea in the vicinity of Bulgarian airspace, which requires the Bulgarian MiG 29s to be in the air and additionally exhausts their already limited resources. The Minister stressed that the Bulgarian army needs new defence systems, including unmanned aerial vehicles, and that by the end of November, an investment programme will be submitted to the National Assembly. Tagarev also commented that the wave of refugees from the region of Israel and the Gaza Strip is not expected to increase in the near future, but noted that there is readiness to react if the situation changes.  

HOME AFFAIRS

24 Chasa and Mediapool report that Dirk Pergoot was appointed the new head of the state-owned Bulgarian Ports Infrastructure Company. He was appointed by order of the Minister of Transport and Communications pending a competition for the position. The state enterprise, which is responsible for the management and maintenance of Bulgarian ports, is headed by a foreign citizen for the first time and his hiring is in line with the Ministry of Tourism's policy of prioritizing experience and expertise in the relevant field, according to a press release from the Ministry of Transport. Pergoot is a Belgian citizen and has over 20 years of experience in port management and port operations. He managed projects in the ports of Antwerp (Belgium), Gdansk (Poland), Alexandroupolis (Greece), Kavala (Greece), as well as in the Bulgarian ports of Varna-Zapad and Beloslav.

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24 Chasa, Mediaool and Trud quote Acting Prosecutor General Borislav Sarafov, who said that since his appointment he has proposed to the Prosecutor's College of the Supreme Judicial Council to initiate disciplinary proceedings against 18 prosecutors and investigators for reasons including irregular work and systematic delay of files and cases against magistrates, persons with immunity and members of the Council of Ministers. Sarafov said that the investigation process of 71 pre-trial proceedings against magistrates and politicians had been checked. In 26 cases, gaps were found in connection with requests to extend the time limits for investigation, in 22 cases there were long periods during when no procedural and investigative actions were carried out, in 8 cases effective control over the investigative bodies was not exercised.

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Telegraph writes that the cause of the floods along the Southern Black Sea coast in September was determined to be extreme rainfall, poor infrastructure and drainage, as well as the large concentration of movable objects, as indicated by a report by the state commission established on the occasion of the disaster. The damages amounted to BGN 38 million.

Duma and Trud report that families of children killed in road accidents protested in front of the Courthouse in Sofia on Thursday. In 10 years, a total of 6,153 people have been killed, 84,556 injured in traffic accidents, according to a protestor sign. 

Duma also writes that Sofia is the most dangerous city for pedestrians in all of Europe, Bogdan Milchev, who heads the Road Safety Institute and a former head of the Traffic Police, said in a Bulgarian National Radio interview, that 129 people died in traffic accidents Sofia from January 2021 until October 2023, 62 of them were pedestrians. In 2022, 160,000 violators were caught by traffic police cameras, while for the first 9 months of 2023 alone, there have been 260,000 violations. "The more cameras and fines we impose, the more victims," he pointed out and added every institution tries to realize "statistical victories" and it is wrong for mayors to talk only about cameras and raised pedestrian walkways. Milchev stated that new cameras are not needed, what is needed is a risk assessment methodology. The Road Safety Institute organized Thursday a debate between candidates for mayor of Sofia.

HEALTHCARE

Telegraph reports on a conflict between the Bulgarian Pharmaceutical Union and the Bulgarian Medical Association regarding prescription and e-prescription regulations that do not allow the substitution of a prescribed drug for its alternative,  amid medication shortages.  Pharmacists insist that substitution be allowed, while doctors rejected the request. Medics noted the possibility of creating corrupt practices, which would be encouraged by the introduction of a generic substitution option without the consent of the doctor who prescribed the therapy.

On Nova TV's morning programme, Bulgarian Medical Association member and general practitioner  Dr. Gergana Nikolova and Margarita Grozdanova from the Bulgarian Pharmaceutical Union commented on the topic of issues related to e-prescriptions for both patients, doctors and pharmacists. Nikolova stressed that out of 40,000 e-prescriptions last year, only 800 were filled, which signals a massive problem. She noted that the practice of e-prescriptions was implemented suddenly without a pilot project and stressed that the main problems stem from the application that the medics use. The personal physician explained that the first condition for registration in the application is to be registered as a medical facility. The problem with different codes for the same drug depending on the importer was also discussed. 

Telegraph also adds that 425 prescription drugs are missing from the pharmacy network and distributors, with 160-170 of them vital and with no substitute, which is largely due to re-exports.

Telegraph reports that school principals are pushing for lighter quarantine rules for students with COVID-19 than the current 7-day quarantine and 5-day quarantine for classmates and teachers.  

ENERGY

Sega, Trud, Mediapool report that the Westinghouse Electric Company Thursday signed partnership agreements with five Bulgarian companies that will participate in a project for an AP1000 reactor to be located at the Kozloduy Nuclear Power Plant's site. The agreements were signed in the office of the American Chamber of Commerce in Bulgaria. The five companies are OSKAR EL, GBS (Glavbolgarstroy), ENPRO Consult, EnergoService, and EQE. Westinghouse Electric expressed confidence that the cooperation with Kozloduy will also create a large ecosystem of local companies working in the field of nuclear engineering, which will become the backbone of the future nuclear industry based on this technology throughout Europe.

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Sega, Mediapool report on the subject of a possible sale of the Lukoil Neftochim Burgas oil refinery. The Swiss-registered commercial division of Lukoil, Litasco SA, which is the main shareholder in Lukoil Neftochim Burgas AD, denied that it had received offers for the sale of the refinery. At the same time, Prime Minister Nikolay Denkov confirmed that there is investor interest in the refinery and it would be "quite strange" if Litasco did not know about it. However, Denkov confirmed that an official negotiation procedure is currently not underway.

Trud quotes energy expert Martin Vladimirov from the Centre for the Study of Democracy (CSD), who said on bTV that a CSD analysis from the end of August clearly shows that Lukoil has generated nearly USD 3 billion in excess profit over the past 18 months due to Bulgaria's temporary derogation from the EU's embargo on Russian oil imports, because it actually sells fuel in Bulgaria at a profit margin of between BGn 0.50 and BGN 0.35  per liter. Vladimirov said that Lukoil receives preferential treatment from the Bulgarian authorities and thus a monopoly was formed on the fuel market in this country, especially on the wholesale market. Over the past 10 years, Lukoil has been pursuing a large-scale strategy across Europe to sell off some of its assets, particularly those related to crude oil processing or fuel retailing. Vladimirov added that bidding is currently underway between various groups interested in the refinery, which is in a very advantageous position because of the derogation. The biggest paradox is that Bulgarian consumers have not seen much benefit from this derogation. All claims that Russian oil cannot be quickly replaced are simply false, Vladimirov stressed.

ECONOMY

24 Chasa reports that the Communication Strategy for Information on Bulgaria's Accession to the Euro Area has been updated by the Ministry of Finance. The document envisages a large-scale communication and information campaign, which will familiarize citizens with the benefits of the introduction of the euro. Measures will also be taken to counteract any misinformation The update plans the phases of the campaign, taking into account the changed perspective for Bulgaria's membership for January 1, 2025, adding a number of new communication activities and changing those envisaged in the previous strategy. Multiple institutions will be involved in the campaign, including the Council of Ministers, the Ministry of Finance, the Bulgarian National Bank, other ministries, the Consumer Protection Commission, municipalities, Bulgarian Posts and others.

Telegraph and Trud write that the necessary net monthly income to support a working person living alone in Bulgaria is currently BGN 1,427, according to the Confederation of Independent Trade Unions in Bulgaria's data (CITUB). CITUB presented the results of monitoring consumer prices and living wages. The calculations show that BGN 2,568 is the average amount needed per month by a three-member family of two working adults and one child under 14. These numbers increased by 1.8% on a quarterly basis and 8.1% on an annual basis, CITUB added. More than 2/3 of working citizens earn less than this living wage, the union also commented, stressing that 41.3% of the people have an income of up to BGN 1,000 (1.07 million people).

On Nova TV's morning programme, CITUB's Violeta Ivanova said that with the upcoming increase in the minimum wage, there will be a breath of fresh air. From January 1, the minimum wage will become BGN 993. "Budget 2023 came into force in August and we are observing a certain increase in wages. Those working with an income up to the minimum wage until August were 41%, but last year they were 46%," Ivanova said, explaining that a legally mandated minimum wage serves as a basis for big companies. 

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Bulgarian National Television (BNT) and bTV both focus on a new 8-month initiative by the Economy Ministry, titled "Affordable for You", which will begin in November and aims to promote affordable food prices.  The campaign is voluntary for merchants and retailers. The goal is to have cheap products from 15 categories in each of the stores that wish to join the programme, including cheese, yogurt, eggs, oil, chicken, etc. All are among the basic food products to ensure normal nutrition. The initiative aims to unite businesses and the State, instead of proposing restrictive measures. Bogomil Nikolov from Active Users said in the BNT discussion that the problem with food prices is social, not economic. In this regard, if there is an economic problem, it is not a managerial one, but a competitive one, and the Consumer Protection Commission should deal with it. A social policy is needed to support disadvantaged people. Dimitar Zorov, head of the Association of Dairy Processors in Bulgaria, defined the campaign as a good initiative, but noted that it is very important to consider at whose expense this idea will be implemented. He gave an example that at the moment, animal breeders are massively slaughtering their animals because the leadership of the Ministry of Agriculture for five months could not figure out the basis of the philosophy of the European agricultural policy, which is not based on a purely market principle.

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Telegraph reports that celebrating the New Year in some of the hotels in the SPA resort of Velingrad, Southwestern Bulgaria,  is more expensive than welcoming the holiday in Monte Carlo. This year, a 3-4 night stay in one of the luxurious accommodations in the country's spa capital will cost between BGN 2,500 and up to BGN 5,700  per room, with food and New Year celebration included. Offers in European capitals such as Rome, Vienna, Paris are more affordable than some in this country, the publication notes.

Mediapool reports that about 10,000 Bulgarians have paid for vacations or excursions in Egypt and Jordan in the next 6 weeks. In the event of cancellations due to the war in neighbouring Israel, tour operators will not offer refunds. At the moment, there are about 1,800 Bulgarians vacationing in the two countries, without problems or security risks. There have not been many cancellations so far. Trud and Mediapool reported that after issuing a recommendation against visiting countries in the region, the Foreign Ministry has now specified its recommendation, excluding trips organized with charter flights to Egypt and Jordan.