site.btaAssociation of Innovative Industries Slams Government for Refusing to Recognize It as Nationally Representative

The Bulgarian Employers' Association Innovative Technologies (BRAIT) slammed the government for refusing to recognize it as a nationally representative employer organization and thus keeping it out of the tripartite council of government, employers and the unions. In a strong-worded position put out February 4, BRAIT said that the government "condemns the Bulgarian economy to backwardness, zero competitiveness and an irreparable lag behind the global trends". 

On January 29, the Council of Ministers refused to recognize BRAIT as a nationally representative employers' organization, arguing that it failed to meet all criteria set out in the Labor Code, and did not include it in the composition of the National Council for Tripartite Cooperation (NCTC).

BRAIT unites the most innovative sectors of the Bulgarian economy, including the automotive and software industries, IT and ICT, biotechnology, artificial intelligence, blockchain, fintech, agritech, renewable energy, e-commerce, and others.

According to BRAIT, the government’s decision does not align with global realities and is the result of a controversial selection process for NCTC members, conducted by a special commission under the Labor and Social Policy Ministry.

"In recent years, Bulgaria has maintained fragile economic growth, largely thanks to high-tech industries, which continue to show double-digit expansion. These are the very industries that attract young people to stay in Bulgaria, generate positive international recognition for the country, and add value to both the economy and society. Against this backdrop, Bulgaria’s entire political class suffers from a lack of awareness and understanding of key technological advancements such as digital transformation, artificial intelligence, cybersecurity, and strategic ICT infrastructure - factors that will shape the global economy for years to come," BRAIT stated.

In its official position, BRAIT emphasized that the government's refusal to admit it into the NCTC is a deliberate rejection of an opportunity to develop a modern economy, increase productivity, and enhance competitiveness.

"It is clear that the intent is for the NCTC to remain a visionless forum, serving merely as a rubber stamp for opportunistic decisions. The consequences of this irresponsible governance are already evident: Bulgaria remains on the grey list for money laundering oversight, ranks last in the EU for digitalization, faces a lack of investment, an unpredictable business environment, an inefficient and bloated public administration, low-quality public services, inadequate education, a tolerance for corruption, a lack of rule of law, unstable public finances, and, most concerning of all, a clear deviation from Bulgaria’s Euro-Atlantic path," the statement reads.

BRAIT also asserts that it fully meets the formal criteria for NCTC membership. Official data from the National Social Security Institute confirms that BRAIT applied for NCTC participation with 106,746 employees and 2,913 member companies and employer organizations. However, in what BRAIT describes as a completely non-transparent and undemocratic process, the Commission for Establishing Representativeness Criteria ultimately concluded—without explanation—that BRAIT has only 1,127 members and a total of 70,140 employees.

To date, BRAIT’s Board of Directors has not been informed of the reasoning behind the Council of Ministers' decision. "For us, it is evident that the NCTC selection process is flawed, with rules so open to interpretation that they can be manipulated at will. We believe this government decision is deeply detrimental to future generations in Bulgaria, and we will respond using all legal means available," the statement concludes.

About BRAIT

BRAIT was established on February 5, 2020, in Sofia, as the successor to the Association of Business Clusters. BRAIT aims to support the development and strengthening of its members, representing high-value industrial sectors linked to innovative technologies.

BRAIT’s Board of Directors includes organizations representing some of the most significant industries in Bulgaria, such as the Association for Innovation, Business Excellence, Services, and Technology (AIBEST); Bulgarian Association of Software Companies (BASSCOM); Bulgarian Association of Information Technologies (BAIT); Institute for Agri-Strategies and Innovation; Mechatronics and Automation Cluster; Cluster for Information and Communication Technologies Foundation; Renewable Energy Sources Cluster; Trakia Economic Zone Cluster; AI Cluster Bulgaria; Bulgarian Entrepreneurial Association (BESCO).