site.btaEconomy Minister Does Not Rule Out Closing State Consolidation Company

Economy and Industry Minister Bogdan Bogdanov does not rule out the possibility of closing the State Consolidation Company (SCC). He told a news conference on Monday that working for the future of state-owned enterprises is a priority this year. "The future of these enterprises requires structural adjustment, and probably closure of the SCC," Bogdanov commented.

He noted that the SCC was set up to enable the state to consolidate businesses in which it holds a minority stake, in order to sell them. The SCC has failed to do its job, the economy minister said.

An in-depth analysis is underway to see how existing jobs can be retained. The plan is to categorize the state-owned enterprises under the SCC umbrella into four groups: clean technologies and circular economy, defence and aerospace industry, food and biotechnology, and critical minerals, metals and materials, Bogdanov said. According to him, these are the four main areas in which enterprises can continue to operate effectively on the market without relying on government contracts, and above all, without illegitimate subcontracting, which has inflicted BGN 700 million in detriment on the public purse.

Such companies can form public-private partnerships with leaders in the respective key industries; privatization is not the purpose, Bogdanov explained.

Another line of structural adjustment is to downsize the boards of state-owned companies to between 20 and 30 members from the current average of about 70 people.

The proposals will be discussed with the government, party leaders and the Economic Policy Committee in the National Assembly. The process will take time as the ideas require broader support to be put into practice, Bogdanov said.