site.btaMedia Review: December 18

THE HEADLINES

The headlines in Wednesday's print media are dominated by reports on a series of government formation meetings between GERB-Union of Democratic Forces (UDF) and Democratic Bulgaria (DB), and between GERB-UDF and the Bulgarian Socialist Party (BSP)-United Left.

POLITICS

Trud, 24 Chasa, Dnevnik, Mediapool.bg, Bulgarian National Radio (BNR), Bulgarian National Television (BNT), bTV and Nova TV report that GERB had two separate meetings with representatives of Democratic Bulgaria (DB), and the Bulgarian Socialist Party (BSP)-United Left to discuss the parameters of the draft State budget for 2025, focusing on financial stability and long-term goals. An urgent meeting with Finance Minister Lyudmila Petkova to address risks in the draft budget is also planned.

GERB and DB emphasize that "Stability in public finances and budget consolidation is necessary to achieve the country's main strategic goal—joining the eurozone."

GERB and BSP agree on the need for a regular government with a full term in office to overcome the ongoing political and financial crises and ensure a balanced budget, anti-corruption reforms, and social security measures. During their talks, the two coalitions reached a consensus on forming an anti-corruption majority with a pro-European nature and emphasized the importance of ending the cycle of elections to establish stability. BSP advocates for contributions from the ultra-wealthy to reduce inequality, while GERB prioritizes Bulgaria's entry into the Eurozone. Both parties will work on incorporating these measures into an agreement to form the basis of the National Assembly's legislative programme.

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24 Chasa covers comments by Vladislav Panev, former MP from Democratic Bulgaria (DB), on the ongoing coalition negotiations and key political developments. Panev, part of the negotiation team on the side of DB, stresses that DB will not join a cabinet without Continue the Change (CC) and speaks of the importance of parliament voting on amendments to the Judicial System Act to block [acting Prosecutor General] Borislav Sarafov's potential election as Prosecutor General before finalizing a government agreement. "Before that, there must be an agreement to support the law that will block Sarafov," Panev states.

He predicts that if negotiations succeed, the vote for a new government will align with the Prosecutor General's election on January 16. Panev envisions a responsible, non-partisan prime minister but notes that talks are still in the early stages due to differing party interests.

Panev criticizes the caretaker government's budget proposal, calling the capital expenditures of BGN 14 billion "excessive" and warning against adopting a budget without a regular government. He also highlights the influence of MRF-New Beginning's Delyan Peevski and says he is the person responsible for shelving of government plans to tax banks' excess profits after meeting with bank representatives.

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24 Chasa reports that Anton Kutev, spokesperson for two previous caretaker governments, describes Bulgaria’s political system as being in a "deep coma" and incapable of recovery under its current structure. Speaking on Nova TV, Kutev says, "The system needs to be changed," predicting either the emergence of new political entities or a collapse of the existing party system. He adds that discussions on transitioning to a presidential republic are becoming inevitable.

Kutev criticizes the role of the prosecution service in government negotiations, emphasizing its importance to figures like GERB leader Boyko Borissov and MRF-New Beginning leader Delyan Peevski. "They know that many people do not want Sarafov as Prosecutor General, but they can't do anything about it," he noted. Kutev expresses skepticism about the current negotiations, asserting that while all parties desire a government, fundamental change is necessary to address systemic dysfunction.

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Bulgarian National Radio (BNR), Bulgarian National Television (BNT), bTV, and Nova TV report on GERB leader Boyko Borissov's statement emphasizing the need to form a regular government. Borissov expressed optimism about ongoing negotiations, stating, "So far, the negotiations are going well... I am optimistic because what I see on the international stage requires us as a nation, as a state, as a people to form a regular government."

Borissov warned against Bulgaria's current passive role in regional processes, calling for a return to its influential position from four years ago. He noted that most political parties appear committed to forming a government, except for MRF-New Beginning and Continue the Change, which he claimed prefer elections. "They will join... when there is a framework to discuss," he added when asked about the possibility of a coalition agreement.

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BNR and Nova TV report that MRF-New Beginning leader Delyan Peevski stated that his party plans to act as opposition if GERB-UDF form a government. Peevski reiterated his call for new elections, stating, "We want elections to have a clear winner. As you can see, it currently takes a whole bunch of parties to achieve anything."

He dismissed claims that MRF-New Beginning and CC are obstructing government formation, adding, "Borissov is the leading force. Let them form it quickly and work for Bulgaria, and if they succeed, we will be the opposition and point out all mistakes."

Peevski noted that preparations for new elections are already in place and warned that forming a government with the current mandate would only delay inevitable snap elections. He emphasized that "people want a New Beginning" and expressed openness to collaborate with those committed to Bulgaria's progress.

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BNR and Nova TV reported that CC Co-chair Kiril Petkov clarified his party’s stance on government negotiations. Petkov emphasized that CC is not participating in the talks but is closely monitoring them, while Democratic Bulgaria (DB), the other half of the coalition, remains actively involved.

Petkov sets clear conditions for CC’s participation, demanding an "equidistant prime minister" and the signing of a declaration rejecting ties with MRF-New Beginning. "We cannot take GERB leader Boyko Borissov's hand and pull him out of Peevski's dark room," Petkov said, adding that CC will not compromise on these points.

He further stressed the urgent need for parliamentary committees to begin functioning, particularly to address critical legislative priorities. Petkov said the most important thing at the moment is for parliamentary committees to start functioning.

Nova TV quoted Petkov, saying: “We left our colleagues to negotiate. These two points, which we promised to our voters, were not to be compromised”. He also emphasized the need to quickly form parliamentary committees, particularly the legal one, to advance judicial reforms and block Borislav Sarafov’s nomination. "If it is not formed this week, we have no chance to stop Sarafov."

LAW ENFORCEMENT

Trud, 24 Chasa, Dnevnik, Mediapool, Bulgarian National Television (BNT), Bulgarian National Radio (BNR), bTV and Nova TV report that acting Prosecutor General Borislav Sarafov justifies the need to request the lifting of MP immunities when warranted by investigations, stating, "If I do not request immunity when it is requested of me and the grounds are there, it means that I am in a situation of personal concealment." Sarafov clarified that the role of the Prosecutor General in such cases is procedural, describing it as a "mailbox" for requests from supervising prosecutors.

He stressed that there can be no "convenient moment" for such actions. To the question if he would seek to have more members of parliament stripped of immunity, Sarafov says that "considerations have to be made."

Mediapool provides more background on the circumstances surrounding Borislav Sarafov's nomination and his recent actions as acting prosecutor general. They highlight the concentration of formal power in the hands of the prosecutor general, which renders much of the prosecutorial system a "voiceless tool" under its leader. This dynamic, illustrated by the dismissal of former prosecutor general Ivan Geshev, reveals how prosecutorial powers can be used for political purposes without accountability.

This week alone, the prosecutor's office made several high-profile moves: seeking the immunity of CC-DB Co-chair Kiril Petkov for his 2021 arrest of GERB leader Boyko Borissov, arresting an associate of CC-DB Co-chair Assen Vassilev in an investigation targeting Vassilev, and requesting the immunity of CC-DB MP Lena Borislavova over a four-year-old document forgery case. These rapid developments over three days raise concerns about the prosecutor's office's role in the political process.

Earlier in the summer the prosecution service played a prominent role in internal conflicts within the Movement for Rights and Freedoms (MRF), initiating cases and arrests against high-ranking allies of Alliance for Rights and Freedoms leader Ahmed Dogan in favour of Delyan Peevski. These events unfolded over three days, raising questions about the prosecution service's role in the political process.

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Trud, 24 Chasa, Dnevnik and BNT also report that Nikolay Nikolaev, spokesperson for the Sofia Regional Prosecution Office, denied political influences in the judicial system in an interview on BNT. Responding to acting Prosecutor General Borislav Sarafov's comment about being a "kind of mailbox" for immunity requests, Nikolaev says, "We have determined it is justified, and he [Sarafov] should also make his decision," referring to the request to strip the immunity of CC-DB MP Lena Borislavova. "The investigation cannot continue if [Borislavova's] immunity is not stripped".

Nikolaev discussed the timing of the request. He said it is linked to an expert report, crucial for determining the charges, which was only recently finalized. Additionally, a functioning Parliament is needed to submit a request to the National Assembly to strip the immunity of an MP. Nikolaev also cautioned that urging the Supreme Judicial Council not to appoint a new prosecutor general could give the impression that the judiciary is in the same state of disarray as the National Assembly.

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Duma reports that the Association of Prosecutors in Bulgaria and the Chamber of Investigators strongly oppose the proposed amendments to the Judicial System Act submitted by CC-DB, arguing that parts of the changes conflict with the Constitution. In a joint statement, they criticize the proposal for creating instability and perpetuating stagnation in the judiciary.

The organizations emphasize that parliament is constitutionally obligated to elect its quota for the Supreme Judicial Council (SJC) and blame the legislative branch for the judiciary’s crisis and declining public trust. They argue that instead of addressing the issue, the proposed bill "aims to cement the vacuum" in the judicial system. The statement asserts that "legitimate and socially beneficial results cannot be achieved through unconstitutional means."

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Telegraf reports that police and penitentiary staff are ready to protest over concerns about funding for salary increases approved in the 2025 budget. Trade union leaders emphasize that the hikes, averaging 50%, are a legal requirement but question why no action has been taken to secure the funds. "Why has no one sought a way to secure the funds for nine months?" asked Genadi Tenev, a board member of the Trade Union Federation of Employees in the Ministry of Interior.

Ilia Kuzmanov, the union's chair, spoke on Nova TV and highlighted the disparity in salaries compared to other sectors, stating, "The average salary here [in Bulgaria] is BGN 2,400, while in the Ministry of Interior it is BGN 1,466." He added that proper compensation reflects the value of their work and Bulgaria’s progress, including its Schengen membership.

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BNR, BNT, and Nova TV report that the Chair of the National Assembly, Nataliya Kiselova, received a request from acting Prosecutor General Borislav Sarafov to strip the immunity of MP Dzheyhan Ibryamov from the Parliamentary Group of Democracy, Rights and Freedoms (DRF).

The request, dated December 13, 2024, concerns a pre-trial investigation, and has been formally submitted to the National Assembly for permission to initiate criminal proceedings, GERB-UDF's Raya Nazaryan said from the parliamentary rostrum.

FOREIGN POLICY

Duma reports that BSP Chair Atanas Zafirov criticizes the proposed security cooperation agreement between Bulgaria and Ukraine, calling it "an affront to the interests of the Bulgarian people" and a betrayal of national priorities. The agreement commits Bulgaria to a 10-year obligation to provide military aid, training, and support for Ukrainian refugees, which Zafirov argues "fuels the conflict rather than helping to end it and achieve lasting peace."

Zafirov condemns the caretaker government for pursuing long-term commitments without public mandate, asserting that such actions exceed its authority. He emphasizes BSP's stance that the conflict in Ukraine cannot be resolved militarily, stating, "Diplomacy is the only way to achieve a ceasefire." BSP pledges to oppose the agreement and demand accountability, insisting Bulgaria’s policy should prioritize peace, state security, and citizen interests.

SOCIETY

24 Chasa and Dnevnik report on the results of a survey by Trend Research Centre. Some 60% of Bulgarians are satisfied with their lives, with satisfaction levels remaining consistent with those before the COVID-19 pandemic and subsequent crises. The survey indicates an increase in the number of people uncertain about their expectations for 2025. A total of 24% of respondents believe 2024 was a good year for Bulgaria, a decrease of 4% compared to 2023.

ECONOMY

Dnevnik reports on the formalization of the proposed merger between the National Revenue Agency (NRA) and the Customs Agency, included in the transitional and final provisions of the 2025 draft state budget bill. Initially announced in February by CC-DB’s Assen Vassilev, the proposal has faced significant criticism due to ambiguities and the broad powers it grants to tax inspectors. These include the ability to search offices, seize documents, and interrogate individuals, without clear procedural safeguards or corresponding amendments to the Criminal Procedure Code. CC-DB’s Bozhidar Bozhanov highlights these concerns, describing the powers as "excessively broad" and potentially repressive.

The reform lacks supporting justifications, causing concern among businesses, accountants, and legal experts. Discussions in specialized forums show worry that the proposed changes might let tax authorities ask business owners or employees for oral explanations without prior legal consultation. Furthermore, it is unclear if the investigative roles currently held by customs officials will automatically transfer to the NRA.

Despite the lack of clarity, work on the merger continues. NRA Executive Director Rumen Spetsov said (in June 2024) that efforts are underway to implement it by January 1, 2025. Spetsov acknowledges unresolved issues, such as the restructuring of territorial directorates, but argues there is no fundamental problem since both institutions operate under similar regulations. Finance Minister Lyudmila Petkova appointed Customs Agency Director Georgi Dimov, formerly of the NRA, with ensuring a smooth transition and applying best practices to improve revenue collection.

The reform takes cues from several EU countries, such as Denmark, Estonia, and Spain, along with non-EU countries like the United States. In February 2024 Assen Vassilev said that the merger is intended to streamline customs, taxes, and excises, reduce bureaucracy for businesses, and enhance coordination in monitoring state debts and cash flows. However, critics caution that the merger might disrupt revenue collection during the transition and could set a risky precedent by granting unchecked powers to tax authorities, potentially leading to abuse, and diminishing public trust.

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Dnevnik features an opinion by Vladislav Panev, who sharply criticizes the proposed 2025 budget, calling it unsustainable due to unprecedented expenses that will strain the economy and taxpayers. Panev argues, "Expenditures amounting to 46% of GDP mark an absolute record," warning that such a budget will lead to higher debt, inflation, and declining investments without significant tax increases.

Panev dismisses the Finance Ministry's revenue projections from capital amnesty as unrealistic, stating, "To collect BGN 5 billion with a 15% rate on illicit money, over 30 billion would need to be laundered. I strongly doubt there is even that much." He also criticizes parliament’s fiscal irresponsibility, adding, "[GERB leader] Boyko Borissov said that when it comes to increasing expenditures, everyone should remain silent because they have all been complicit. I believe among MPs I have earned the right to speak, as I have done in Parliament. I was the only voice against energy compensation without commitments, that the biggest beneficiary of was Lukoil Neftohim, receiving hundreds of millions in the form of compensation."

Panev calls for the rejection of the draft budget and advocates returning to fiscal conservatism by cutting expenditures to 40% of GDP, reducing administrative staff, and reforming state-run energy companies. Without these measures, he warns, Bulgaria risks long-term economic stagnation and increased financial instability.

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Dnevnik reports that the Supreme Administrative Court (SAC) rules former transport minister Georgi Gvozdeikov's decision to directly appoint a contractor for 35 electric trains as unlawful. The SAC overturns the Commission for Protection of Competition's prior dismissal of a complaint by Consortium Bulemu, which challenged Gvozdeikov's actions. The process now goes back to the transport ministry to continue from its last legal stage. The court's decision is final. Gvozdeikov has since left politics.

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BNT reported that former energy minister Alexander Nikolov attributed the 9% increase in electricity prices during the winter to poor management of Bulgaria's energy system. Nikolov stated, "The capacities available in Bulgaria are not being used in the best way. There is no framework to encourage investment and asset renewal." He criticized the lack of clear policies for the Stara Zagora [coal mining] region, highlighting unfulfilled promises and billions invested without results.

Nikolov said that the energy sector should only be liberalized if Bulgaria's energy resources are used efficiently. "If we harness Bulgaria's energy potential, prices won't be a public concern because they won't be too high," he said, noting that poor state management is causing prices to rise. He added that the energy sector has the potential to generate over BGN 1 billion in revenue if managed effectively.

HEALTHCARE

Trud, Telegraf and Mediapool report that caretaker Health Minister Galya Kondeva says the main issue with in vitro procedures lies in regulations, not funding. In an interview with Nova TV, Kondeva explains that while there are currently funds available for assisted reproduction, changes are needed in the Centre's regulations and in optimizing the activities funded by the State.

The Center for Assisted Reproduction's BGN 22 million budget is expected to cover costs for 2024, with BGN 1.4 million remaining as of mid-December. Kondeva clarifies that the reallocation of BGN 2 million from the 2025 Budget was addressed, adding, “We received assurances that if necessary, these funds will be provided.”

Following a meeting with the Iskam Bebe [I want a baby] Foundation, Kondeva announces plans to update regulations within three months to improve funding criteria and support for donor programmes, saying, “This can be done earlier than mid-year, even with the current funding.”

The funding for in vitro procedures in Bulgaria has become a contentious issue following Decree No. 407, which reallocates BGN 2 million from in vitro and research budgets to farmers, sparking criticism from the Iskam Bebe Foundation and political parties, which have demanded an explanation from the Finance Ministry. The Health Ministry clarified that the funds come from a central reserve, not the Center for Assisted Reproduction's budget, which remains fully funded at BGN 22 million for 2024, ensuring all eligible couples are supported.