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  11 Mar 2010, Issue 2812
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Bulgaria Business Sighs in Relief as Scandalous Regulation Nixed
Bulgaria's National Revenue Agency has revoked a scandalous regulation that obliged heads of small enterprises to be subject to double taxation, a requirement that is deemed detrimental for them.
| read |
EIU: Recession, Greek Crisis Stumble Bulgaria's Economy
The recession in Bulgaria's main trading partners and the Greek crisis will be among the major obstacles that Bulgaria's economy will face in the short term, a report of the Economist Intelligence Unit (EIU) says.
| read |

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Bulgarian Presidential Impeachment in a Teacup
By Ivan Dikov

The latest political "scandal" to occupy public attention in Bulgaria is not really a very exciting one even though, supposedly, much is at stake - the potential impeachment of President Parvanov initiated by the ruling GERB party of Prime Minister Borisov.

Why do the GERB party and its allies from the rightist Blue Coalition and the nationalist Ataka party want to impeach Parvanov?

This time (see below for the previous time) it all started when in a TV talk show Finance Minister (and Deputy PM) Simeon Djankov hinted that the President was a secret billionaire. When asked by the hosts if it was true that Parvanov was a young billionaire, Djankov said "He certainly is not young."

The Presidency reacted pretty strongly which led Djankov to go to the President's office last Friday in order to talk the situation over with Parvanov. Even though Djankov said after the meeting that the conflict had been resolved, this opinion was not share by the President whose administration swiftly released the transcript of their conversation publishing it on its website.

This was a pretty nasty move. First, because this is perhaps the first case ever in Bulgaria's history of a transcript of a conversation between two politicians of such rank which was released immediately and on the website of one of the two institutions involved. This double standard - i.e. the fact that this was a precedent - led the rightist Blue Coalition to demand the release of tapes of Parvanov's talks with the Russians over the large-scale energy projects, and with other Bulgarian politicians about the forming of the Stanishev government - because clearly Bulgaria no criteria when to release such transcripts.

Second, because the Finance Minister had not been notified or asked about the release of the transcript. Third, because the trascript made Parvanov seem as the winner in the dispute because he behaved rather aggressively and even interrupted Djankov a couple of times.

It is clear that Djankov made made an unpleasant hint about the President in that talk show - even though he later tried to portray it as a joke. But it is also clear that Djankov is not really good at being aggressive - and was actually rather apologetic during his meeting with Parvanov - even though he bluntly refused to apologize for his words saying he did not make the claims the President accuses him of.

Clearly, the ruling party had to react proportionally in order to help Djankov save face - otherwise it would seem as though he went to the Presidency to be shouted at by the Parvanov, and hardly managed to say anything in his own defense. Thus, on Wednesday the GERB party came up with the idea to start an impeachment procedure.

Now, this is not the first time Parvanov's presidential seat comes under such menace. In October-November 2009, just three months after the Borisov government came to power, it was much more likely that he could be impeached.

The reason then had to do with the recall of Bulgaria's Ambassadors to the USA and Turkey over violations they allowed in the July Parliamentary Elections. Parvanov, however, refused to okay the recall, leading the rightist majority to get ready to impeach him.

The moment would have been much better for GERB if they really wanted to do that because they had a lot of traction after just winning the elections, they had one more rightist ally - the conservatives from RZS who group later fell apart and they turned against them - and a much clearer motive. Eventually, however, the problematic Ambassadors resigned, and the Parliament dropped the impeachment issue off the agenda - fueling suspicions that there had been some deal between Borisov and Parvanov, or that Parvanov was simply "brought into line".

This time, however, it would be much harder to impeach Parvanov. For one thing - the motive for initiating the motion is rather murky - GERB claim the President violated the Constitution by taping Finance Minister Djankov without his agreement.

While this raises a whole bunch of legal issues in Bulgaria about the taping of talks between officials, it is hardly a convincing argument even for people with little legal knowledge - just because every single meeting of this sort has shorthand records that Djankov was well aware of, and those are not forbidden by the Constitution. There seems to be little legal clarity about the double standards of releasing such transcripts to the public to achieve certain political goals.

Second, the GERB party will hardly muster enough Parliamentary support for an impeachment decision. It needs to have 60 MPs sign a petition to demand a debate on the issue. Then in the debate, it needs to have a majority of two-thirds, or 161 votes out of 240 MPs in order to pass an impeachment vote, which will throw the decision in the hands of the Supreme Constitutional Court. Together with its allies, the GERB party has 152 votes.

Even if it somehow got the other nine votes from the staunch opposition - Parvanov's Socialist Party, the ethnic Turkish DPS, and the conservative RZS, it is not very likely that the Constitional Court will rule in favor of impeachment.

The GERB party really cannot afford to suffer such a possible defeat. At the same time, if Parvanov got impeach, this will either make his deputy, former Warsaw Pact general Angel Marin, the President, or will lead to early Presidential Elections. Both scenarios are rather unfavorable for Borisov, especially the second one, which will hardly allow his government to meet the expections of its voters.

Finally, there was Borisov himself mentioning late on Wednesday that he didn't feel like having Marin as President.

The GERB party does not really seem to have any intention to impeach Parvanov; they just appear to want to carry out a short and decisive punitive campaign. As of now it is still unclear where along the way the charges against the President would be dropped but the ruling party would hardly risk holding a vote in which it did not muster enough votes, or seeing a Constitutional Court ruling unfavorable to them.

Allowing either of those would be a serious blunder for them. As will be the actual impeachment of Parvanov and going for early Presidential elections - which will totally throw the Bulgarian nation off course at a moment when it has got to focus on overcoming the crisis, fighting corruption and crime, and finally absorbing EU money for the public good.

Unless Borisov's party commits any major mistakes, the second motion to impeach Parvanov will share the fate of the first one - it will make a few headlines and will descend into oblivion.
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BULGARIA GOVERNMENT STARTS PRESIDENT IMPEACHMENT PROCESS

Bulgaria’s governing GERB party have announced that they will submit a request to Parliament for the initiation of the process for the removal of Bulgaria President Georgi Parvanov.

Co-chair of the center-right GERB parliamentary group, Krasimir Velchev, announced the desicion, which was taken after discussions were held Tuesday with NGOs, public experts and the legal implications of the ‘transcript scandal’ was looked into.

GERB’s Executive Committee announced that they interpreted the publication of the transcript of the President’s meeting with Finance Minister Simeon Djankov as a violation of the constitution. In Bulgarian law it states that “no citizen can be recorded without his knowledge or...except in cases provided by law”.

"The behavior of President Georgi Parvanov is an unprecedented act of defiance of civil and constitutional rights. It is a violation not only of the Deputy Prime Minister and Finance Minister but also of the GERB government. Such behavior is very bad sign to Bulgarian society and its citizens. It shows that the established rights in the Constitution of the Republic of Bulgaria can be violated even by the head of state. This precedent is a sign of an unacceptable political morality, and requires a clear policy response,” Velchev stated.

Any impeachment process is likely to meet strong opposition in the Parliament - it will require 160 MPs votes to trigger the mechanism to fire the President but the current government can currently only count on 154.

The conflict between Djankov and Parvanov flared up after the appearance of the Finance Minister in the talk show of the TV channel Nova Televizia last Monday night, where he was asked to confirm claims that the President is a “young billionaire” and has “dozens of luxury properties in the United States, Europe and Dubai.” Djankov immediately denied saying such things, but when the host reiterated the question: “Is the President a young billionaire?” the Minister replied: “He is definitely not young.” The very next day, Parvanov made an official call for Djankov’s resignation.

In an instant reply, the Minister denied any wrongdoing, but nevertheless and on the insistence of PM Borisov, who arranged a meeting between him and the President, agreed to try to iron out the “misunderstanding.”

On Friday, following the talks between the two, Socialist President Parvanov published the transcript on his website triggering a wave of comments and criticism.

 


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BULGARIA HEALTH INSURANCE PAYMENTS TO INCREASE FROM APRIL 1

Health insurance contributions will be put up from 8 to 10% starting on April 1, Regional Development Minister Rosen Plevneliev reported Wednesday.

Plevneliev confirmed the April 1 date while speaking after a meeting of the Council of Ministers.

Bulgaria PM Boyko Borisov first announced the increase in health insurance payments on Monday after meeting with protesting doctors.

Borisov promised the doctors an additional BGN 350 M from the budget of the National Health Insurance Fund to make money available for delayed payments. The 2% raise was designed to cover this budget increase.

Borisov also pointed out that Bulgaria has the lowest employee health insurance payments in the EU – currently 8%.


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BUSINESS

BULGARIA BUSINESS SIGHS IN RELIEF AS SCANDALOUS REGULATION NIXED

Bulgaria's National Revenue Agency has revoked a scandalous regulation that obliged heads of small enterprises to be subject to double taxation, a requirement that is deemed detrimental for them.

Social securities will be paid only for activities that go with a concrete salary, the new regulation states.

The revocation of the previous document, which banned chief executives of small companies to be treated only as self-insured people and demanded for the payment of more social securities, came under huge pressure from Bulgaria's business.

The controversial regulation was adopted on February 25 and was backdated as of January 1. According to business representatives the regulation deals a heavy blow to thousands of small companies across Bulgaria, who are fighting for survival under the conditions of an economic crisis and spells their death.

The association of small enterprises went as far as to threaten to take the matter to the court.

Bulgaria's National Revenue Agency spokesman Rossen Bachvarov commented on Wednesday that the interpretation of the amendments to the Social Securities Code was “in fiscal terms alone”, which made imperative its revocation.

He declined to cite the amount of revenues that was expected to flow to the agency under the double taxation requirement, but insisted that it was not illegal.


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BULGARIA INDUSTRIAL OUTPUT DOWN 0,9% IN JANUARY Y/Y

Industrial production in Bulgaria decreased 0,9% year-on-year in January, compared to the 12,1% fall in the previous month, shows data from the national statistics office.

On a monthly basis, industrial output declined 14,7% in January, after falling 0,7% in December.

Production of electricity,gas,steam and air conditioning supply increased 1,1%, while that of energy products – more than 6%.

Retailer turnover on an annual basis increased up to 12,9% in January after marking a 11% increase a month earlier, which shrinks the turnover total in the trade sector by 19% in comparison with the first month of last year.


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BULGARIA JANUARY CONSTRUCTION INDEX DOWN 31% Y/Y

In January 2010 the construction production in Bulgaria is down 31% year on year, data published by the National Statistics Institute (NSI) reveals.

The reduction is explained by the crisis in building construction – over 38% less compared to January 2009.

In the infrastructure construction, the decrease is 12% year on year, which according to NSI experts, is a sign building contractors are redirecting their attention.


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GREEK STRIKE FORCES CHANGES IN BULGARIA TRAIN SCHEDULE

The Bulgarian State Railroad company, BDZ, informs Wednesday changes in the schedule of 6 trains to and from Greece.

The changes are triggered by the 24-hour strike in Greece beginning Thursday.

The international express train between Bucharest and Thessaloníki via Sofia will travel only to Sofia and will leave Thursday morning for Bucharest.

Also on Thursday, the two morning and the two afternoon trains between Sofia and Thessaloníki are canceled.

BDZ reassures all passengers that their tickets will be reimbursed.


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FINANCE

EIU: RECESSION, GREEK CRISIS STUMBLE BULGARIA'S ECONOMY

The recession in Bulgaria's main trading partners and the Greek crisis will be among the major obstacles that Bulgaria's economy will face in the short term, a report of the Economist Intelligence Unit (EIU) says.

According to the experts for the time being concerns over Bulgaria's competitiveness could hardly trigger the dismantling of the Currency Board that keeps the Bulgarian currency at 1.9558 to the euro.

The report points out that the weak demand on the market of the EU member states will limit the exports of Bulgarian goods and services, but considerable changes are not expected in the levels of the current account deficit in 2010 and the year after.

According to EIU the current account deficit will stand at an average of 6,8% of GDP by the end of 2011, driven mainly by the trade deficit. The Economist's analytical unit projects inflation at about 2,2% in 2010 and 2,5% in 2011. Bulgaria's economic growth has been set at 0,6%.

Prior to the economic crisis Bulgaria was among the countries with the highest inflation in the European Union, but due to the recession, prices in Bulgaria and across Europe started falling.

Statistics office data recently showed that the harmonized index of consumer prices rose 1,8% on a yearly basis in January and was up 0.6% on a monthly basis.

The experts forecast that the crisis in Greece will probably hurt Bulgaria regarding its trade contacts, investments and the Greek banks.

The foreign analysts also warn that the deteriorating debt crisis in Greece and the Greek banks, which hold nearly 30% of the Bulgarian banking sector, may trigger funds outflow from Greek bank subsidiaries in the country to headquarters in Greece.

Bulgaria's central bank has recently assuaged fears over funds outflow from Greek bank subsidiaries in the country to headquarters in Greece, saying this is part of the free movement of capital

“There is no liquidity withdrawal from Greek banks subsidiaries in Bulgaria,” representatives of the Bulgarian National Bank commented last week.

Most of the bankers that manage the Greeks banks subsidiaries in Bulgaria have also denied that the Greek mother-banks were draining funds from their Bulgarian units.

Some of the biggest lenders in Bulgaria are managed by Italy's UniCredit, Greece's National Bank of Greece, Hungary's OTP and Austria's Raiffeisen.

Other Greek banks present in Bulgaria include EFG Eurobank, Piraeus, Emporiki and Alpha Bank.


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BULGARIA FEBRUARY BUDGET REVENUE SLUMPS - REPORT

The revenues in the Bulgarian State budget continue the January trend of going down, Deputy Finance Minister, Ana Mihaylova, said Wednesday.

Mihaylova spoke in an interview for the TV channel Nova Televizia, but warned that the official data is still to be released by the Finance Ministry.

The Deputy Finance Minister pointed out this trend is due to the continuing effects of the economic crisis and the recovery is expected to begin in the second half of 2010. She reminded the January revenues were BGN 1,7 B while the budget deficit stood at BGN 500 M.

Mihaylova further explained all measures to up revenues are applied accordingly and there is an increase in their collection, but the crisis is influencing the lower amounts, adding the budget must go according to plan and the situation requires limited expenses.

Economic expert, Georgi Angelov, commented during the same interview that the beginning of the year is in general a hard time to increase the revenues in the budget.

Just one day earlier, the National Statistical Institute published preliminary data showing Bulgaria’s export increased by 13,1% in January 2010 year-on-year, prompting Bulgaria’s Finance Minister Simeon Djankov to comment this was the first sign the Bulgarian economy has started to recover.


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PRODI: GREEK CRISIS OVER, EURO SYSTEM SECURE

The worst of Greece’s financial crisis is over and other European nations won’t follow in its path, said former European Commission President Romano Prodi.

“For Greece, the problem is completely over,” Prodi, who was also Italian prime minister, said in an interview for Bloomberg in Shanghai.

“I don’t see any other case now in Europe. I don’t think there is any reason to think the euro system will collapse or will suffer greatly because of Greece.”

The Greek government has promised to slash its budget deficit from nearly 13% of gross domestic product, more than four times the EU limit, to less than three percent by 2012.

French President Nicolas Sarkozy has promised that eurozone nations, the 16 countries using the euro as their currency, will not let the Greek economy fail. German Chancellor Angela Merkel, who runs Europe’s largest economy, however has so far refused to give the green light to any aid package.

According to Prodi intervention by European nations to date “was enough” and countries such as Spain and Portugal have “plenty of time” to get their finances in order.

“Europe is more than happy,” said Prodi. “For the benefit of the European economy, the decrease of the value has been absolutely positive.”


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S&P RAISES OUTLOOK ON ROMANIA, STILL BELOW BULGARIA

Romania’s credit rating outlook was raised to stable from negative at Standard & Poor’s after the International Monetary Fund resumed a bailout loan to the country and the government passed an austerity budget.

It affirmed its 'BB+/B' long- and short-term foreign currency sovereign credit ratings and its 'BBB-/A-3' long- and short-term local currency sovereign credit ratings on the country.

The EU’s second poorest country, which aims to sell euro-denominated bonds in the next week, is rated below Bulgaria, its neighbor, and in line with Azerbaijan and Montenegro.

“The outlook revision reflects our view of Romania’s sustained budgetary reform program and our belief that the government is likely to continue to comply with the International Monetary Fund and European Union standby agreement,” S&P credit analyst Marko Mrsnik said in the statement.

But, S&P warned that the ratings could come under pressure if the Romanian government fails to adhere to the economic and fiscal consolidation strategy, up to and beyond the termination of the standby agreement in 2011, or if the private sector's access to external financing worsens, exacerbating the banking system's vulnerabilities.

The rating agency said Romania's gross domestic product is likely to recover slightly in 2010, thanks mainly to an anticipated recovery in external demand. Domestic demand is likely to remain subdued. GDP contracted about 7.1% in 2009.


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ENERGY

ENI: SOUTH STREAM, NABUCCO SHOULD COMBINE TO CUT COSTS

The rivaling gas pipeline projects in southern Europe, South Stream and Nabucco, should combine to cut costs, the chief executive of one of the partners in South Stream has suggested.

“What we have here is what bankers call a strategic fit,” Eni SpA Chief Executive Officer Paolo Scaroni said yesterday at a Cambridge Energy Research Associates conference in Houston.

“Should all partners decide to merge the two pipelines for part of the route, we would reduce investments, operational costs and increase overall returns.”

Eni is an equal partner in South Stream with OAO Gazprom, the world’s largest producer of gas. Nabucco shareholders include Austria’s OMV AG and Germany’s RWE AG.

The planned route of the two projects passes through Bulgaria.

The South Stream gas line is to be completed by 2015. With it Russia aims at eliminating dependence from transit countries. The South Stream would ship 63 billion cubic meters annually of natural gas from Russia and Central Asia to Europe under the Black Sea.

Nabucco would deliver 31 billion cubic meters annually from eastern Turkey to Austria. Bulgaria, in which the pipeline from Caspian gas fields is to enter the EU, holds a 16.5 % stake in the EUR 8 B project.

The Nabucco pipeline is planned across Azerbaijan, Georgia, Turkey and Bulgaria, its construction executed by a consortium of firms from EU nations - Germany, Austria, Hungary, Romania and Bulgaria - as well as Turkey. The project is the EU's attempt to diversify sources and reduce dependency on Russia and is largely seen as a rival to South Stream.


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DIPLOMACY

SOMALI PIRATES ATTACK FURTHER SOUTH BECAUSE OF SHIFTING TRAFFIC

Somali pirates have started to attack further to the south and east off the Somalia coast as the commercial traffic is trying to evade them, Seychelles Minister Joel Morgan told Novinite.com (Sofia News Agency).

Morgan, who is the Minister of Environment, Natural Resources and Transport of the Republic of the Seychelles, and Head of the Seychelles High Level Committee on Piracy, said he did not believe the Somali pirates have started going further precisely because EU NAVFOR and other navies are patroling in their original target zones.

Rather, the pirates are following the major traffic of maritime trade which is trying to evade, thus going further into the Indian Ocean.

Minister Morgan has pointed out that countries such as Bulgaria could contribute to the solving of the piracy issue by supporting the efforts of the international community for stabilizing Somalia.

Full Text of Novinite.com's Interview with Seychelles Minister Joel Morgan READ HERE

Thirteen Bulgarian sailors from the ships St. James Park and Asian Glory are currently held in captivity by Somali pirates.


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BULGARIA IN EU

BULGARIA APPOINTS EU FUNDS MINISTER IN DAYS

The nomination of Mayor of the central city of Gabrovo, Tomislav Donchev, for Minister without Portfolio in Charge of the EU Funds moved one step forward Wednesday.

The Council of Ministers discussed Donchev's possible appointment and decided to make the nomination official a week from now.

Bulgaria's Prime Minister, Boyko Borisov, put Donchev's candidature on the table during the March 5 parliamentary control, pending the approval of the European Commission. On Monday, Borisov announced EC has given the green light for the new post.

Bulgaria's Regional Minister, Rosen Plevneliev, gave a high mark to Donchev, saying he knew him well and was extremely impressed by the way EU projects have been carried out in the Gabrovo municipality. Plevneliev stressed these projects can make Bulgaria and Europe proud and have received the praise of the EU Regional Policy Commissioner.

“Donchev is an exceptional expert and manager and one of the few people in the country that has worked on all EU operational programs,” the Minister stated.

The Council of Ministers press center informs that the cabinet had postponed the decree to freeze the salaries in the budget sector over the upcoming cabinet changes.


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EU ASKS US TO LIFT VISA REQUIREMENTS FOR ALL MEMBER STATES

The EU Home Affairs Commissioner, Cecilia Malmström, appealed to the US Administration to lift the visa requirements for Bulgaria and all EU Member States.

The information was reported by the Bulgarian National Radio, BNR, Wednesday.

The request came on the heels of the announcement the US President, Barack Obama that Greece will join 35 other nations on the US Visa Waiver Program (VWP).

Malmström says she is applauding the decision and sees it as a step forward in the constructive dialogue between the US and the EU for equal travel rights of citizens on both sides of the Atlantic.

“I appeal to the US authorities to include in VWP Bulgaria, Cyprus, Poland and Romania, whose citizens still need visas to travel to the US,” Malmström is quoted as saying.


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BELGIUM: BULGARIA, ROMANIA EU ENTRY WAS MISTAKE, LESSON

Europe has learned its lesson after the hasty accession of Romania and Bulgaria and won't repeat that mistake, Belgium's state secretary for European affairs, has said.

Speaking for the Romanian newspaper Romania Libera, Olivier Chastel stressed that the new EU hopefuls, led by Croatia, will not be accepted in to the bloc unless they fully align their legislation with the European laws.

Belgium, which will take over the presidency of the European Union in the second half of this years, taking over from Spain, has not encouraged in no way Croatia's hopes that it can wrap up its accession negotiations before the end of the year, Chastel said.

Belgium's state secretary for European affairs mentions a number of stumbling blocks on the path of the Western Balkan countries efforts to become the next EU member states, including Croatia's protracted border dispute with neighboring Slovenia and Macedonia's name dispute with Greece, which will stop Brussels from viewing all them as a bloc.

“The European Union won't repeat the generous gesture it made in 2004 with the accession of ten countries, eight of which came from the former communist bloc,” the Belgian representative said.

He refused to comment claims by diplomats in Brussels, who say Sofia and Brussels want the European Commission to keep an eye on Croatia by imposing the same special monitoring mechanism, to which they were subjected after joining the European Union on January 1, 2007 owing to shortcomings in justice reform and dealing with corruption.

Any failure to redress the problems means that surveillance will continue, a process which resulted in Bulgaria being deprived of hundreds of millions of euros in potential funds.


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EU FOREIGN POLICY HEAD LAUDS WESTERN BALKANS SUCCESSES

The EC High Representative for Foreign Policy, Catherine Ashton, says Europe has a "once in a generation opportunity" to build a robust new diplomatic service.

Addressing the European Parliament, Lady Ashton pointed to EU successes in the post-conflict Western Balkans as a model for future action, the BBC reported.

She said that in the Western Balkans "more than anywhere else" the EU "cannot afford to fail".

Lady Ashton - who was confirmed in her post only last month - highlighted the EU's role in Kosovo and Bosnia-Hercegovina, calling it "multi-faceted" and "tailor-made" to local conditions.

Bulgarian Foreign Minister Nikolay Mladenov met Ashton for talks on the problems of Bosnia-Herzegovina and Kosovo in late February. He offered her Bulgaria’s targeted expertise on the region and they also discussed the question of the integration of Macedonia into the European Union.

MEPs are discussing the structure of a new European External Action Service. The service - known as the EEAS - is the focus of intense debate between the EU's institutions, which want to ensure their influence is not diluted.


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DOMESTIC

BULGARIA'S EMBATTLED PRESIDENT TO SPEAK OUT ON FRIDAY

Hours after the ruling party embarked on a quest for the head of President Georgi Parvanov, he invited media representatives at a press conference to discuss the relations among the institutions.

The event will take place on Friday morning.

“In his preamble the head of state will comment issues, concerning the anti-crisis policy of the country, the preparation of Bulgaria's position concerning Europe 2020, as well as the relations among the institutions,” a statement from the president press office reads.

This will be the first time that the Socialist president comments personally his conflict with Finance Minister Simeon Djankov, which prompted the ruling party GERB to start a process for his impeachment.

The last time Georgi Parvanov officially invited media representatives at the presidency was on July 7, two days after the general elections, which were swept by the center-right GERB party, led by Prime Minister Boyko Borisov.

Earlier in the day Bulgaria’s governing GERB party announced that they will submit a request to Parliament for the initiation of the process for the removal of Bulgaria President Georgi Parvanov.

GERB’s Executive Committee announced that they interpreted the publication of the transcript of the President’s meeting with Finance Minister Simeon Djankov as a violation of the constitution. In Bulgarian law it states that “no citizen can be recorded without his knowledge or...except in cases provided by law”.

An impeachment process is likely to meet strong opposition in the Parliament - it will require 160 MPs votes to trigger the mechanism to fire the President but the current government can currently only count on 154.


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BULGARIA RULING GERB WANTS ALL PRESIDENT TRANSCRIPTS MADE PUBLIC

The ruling GERB party demands that the Presidential institution publishes all transcripts from all meetings during the two terms of Georgi Parvanov.

The transcripts in question include all talks with businessmen and politicians, discussions during official visits and consultations for the appointment of the cabinets in 2001, 2005, and 2009.

The information was announced after the Tuesday meeting of the Citizens for European Development of Bulgaria (GERB) Executive Committee to discuss the transcript and the audio record from the March 5 talks between Parvanov and Deputy Prime Minister and Finance Minister, Simeon Djankov.

GERB’s Executive Committee announced that they interpreted the publication of the transcript as a violation of the Constitution and recommended to the parliamentary group to discuss with NGOs and experts the public and legal consequences and to initiate the process for the removal of the President.

In connection with Parvanov's move to make the meeting's transcript public GERB is asking the following questions:

1.When and how the recording of meetings has been decided upon and has the public been informed about these recordings, and if not, why just now, at the end of the President's second term, it is been announced?

2.What are the guarantees that the lack of clear and publicly presented rules for recording and publishing audio and text information from the President's official meetings is not leading to subjective, mercenary political reasons when publishing the information?

3.If the President's official talks are always recorded, are the participants asked for their permission to do so and how many of them have been aware that such recordings of their statements and opinions exists?

4.Are talks with diplomats, ambassadors, and other foreign representatives recorded and have they been notified and asked for permission? What is happening with those transcripts, how are they used and where are they stored?

5.If the recordings are the common practice of the Presidential institution, can all of them be made available to the public?

If GERB's request for publishing all transcripts is not fulfilled, the party will consider the refusal as definite proof that the publishing of the one from the meeting with Djankov was aimed at discrediting the Minister, giving the President the opportunity to criticize the cabinet and to send political messages to the public, in discrepancy with his duty to represent the unity of the Nation.

GERB further say Parvanov's behavior is an unprecedented act of violation of civic and constitutional rights.

Meanwhile, the Speaker of the Parliament, Tsetska Tsacheva, informed the media that GERB would not appoint an investigation committee to probe the case because the Constitution does include such procedure.

The GERB Executive Committee will undertake the measures provided by article 103 of the Constitution to remove the President before the end of his term.


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BULGARIA CONSERVATIVES DEMAND PM RESIGNATION

Bulgaria's conservative Order, Law and Justice (RZS) party organized a rally and march in downtown Sofia Wednesday in sign of protest against the GERB rule.

About 1 000 attended the demonstration. The march began at the National Place of Culture through the Council of Ministers and ended in front of the building of the Parliament.

The RZS leader, Yane Yanev, addressed the crowd, demanding the resignation of Prime Minister and Head of the Citizens for European Development of Bulgaria (GERB) party, Boyko Borisov.

The demonstrators further voiced requests to convene a Great General Assembly to prepare a new Constitution, as Yanev had said on numerous occasions before. They collected signatures in support of their demands. Some were holding signs such as “Bulgarian Socialist Party (BSP) = GERB.”


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BULGARIA MPS DECIDE TO FREEZE OWN SALARIES

The Members of the Bulgarian Parliament passed Wednesday the decision to halt the procedure to update their salaries and to freeze the current wages.

The project was passed with 143 “yes” votes and the salaries will not be recalculated until December 31, 2010.

When presenting the proposal to not increase MPs' pay, the Speaker, Tsetska Tsacheva, said the alternative would compromise the prestige of the Bulgarian Parliament and reminded her colleagues that just BGN 37 a month are at stake.

“Is this what we need to do in times of crisis? Please back the salary freeze because the opposite discredited us so much before the Bulgarian people that we should not even hold this more than hour-long debate. Let's vote today,” Tsacheva appealed to the MPs.

Georgi Pirinski, from the opposition Bulgarian Socialist Party (BSP) and former Speaker proposed to call Finance Minister, Simeon Djankov, Thursday for a hearing about the cabinet's measures regarding pay. The proposal was approved.

Ivan Kostov, leader of the right-wing Democrats for Strong Bulgaria (DSB) party voiced firm opposition to the freeze, saying it is nothing more than a populist move and the problem needs full solution through structural and personal changes and layoffs in the State Administration and the high-levels of the executive and legislative power.

The ethnic Turkish Movement for Rights and Freedoms (DPS) party pointed out the recalculation and the updating of the MPs' salaries is regulated by the Parliament's Code and they doubt the Wednesday decision can change the Code.

On the other hand side, if the salaries in the public sector go down, the freeze would mean the MPs' pay will not be reduced.

On March 4, Tsacheva publicly confirmed the new levels of salaries to be received by MPs and officials and justified the increase. A day later, Bulgaria’s Prime Minister, Boyko Borisov, said such increase is unacceptable in times of economic crisis.


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BULGARIA PM PROBES SOCIALIST PREDECESSORS CONTRACTS

Bulgaria's prime minister has demanded for a check of contracts, signed during the term of the previous government without secured financing.

In the words of Boyko Borisov the contracts, signed in the period 2007-2009 by the Socialist-led cabinet of Sergey Stanishev, are the major reason for the delay in payments from the state to the business, the press office of the prime minister said in an statement.

The check will also include annexes to contracts, won in public procurement tenders, which obliges the state to pay more than the bid of the winner, such as the contract for the construction of Lyulin highway, whose costs increased more than three times over a period of five years.


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BULGARIA INTERIOR OFFICIALS EXPOSED AS STATE SECURITY AGENTS

А special panel, investigating Bulgaria's communist-era police files, has exposed more than eighty officials from the interior ministry as state security agents and collaborators.

The check has covered people, occupying the top posts in the department - chief secretaries, general directors, deputy general directors, directors, etc.

The blacklist of former state security agents and collaborators already features Socialist President Georgi Parvanov, MPs, former constitutional judges, supreme magistrates, investigators, members of parliament, prominent and well-known former and current Bulgarian journalists.

The files of the former Committee for State Security are a thorny issue in Bulgaria, especially when it comes to the past of high-ranking officials.

Bulgaria's communist-era security service is believed to have remained potent after the fall of communism with the ex-operatives closely linked to the political and business establishment.


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SOCIETY

BULGARIA COMMEMORATES RESCUE OF JEWS IN 1943

Bulgaria commemorated the 67th anniversary of the salvation of Bulgarian Jews and the 65th anniversary of the end of the Holocaust on March 10 with a ceremony at the memorial by the National Assembly.

"The salvation of Bulgarian Jews, which began with the participation of MPs and was supported by members of the Bulgarian Orthodox Church, as well as of hundreds and thousands of honest Bulgarian citizens, was a peak achievement of the civic society," Parliamentary speaker Tsetska Tsacheva said.

Even though Bulgaria was an ally of Nazi Germany in World War II, 50,000 Bulgarian Jews were not deported to the Nazi death camps in 1943 thanks to mass civil protests, active stance by 43 Bulgarian MPs, and Tsar Boris III's resistance to Hitler's demands for deportation.

“On this day, more than any other, the Bulgarian Jews express their greatest gratitude to the Bulgarian people,” Maxim Benvenisti, the head of the Jewish organization Shalom, said at the ceremony.

“For us – the Bulgarian Jews – the Bulgarian people and the Bulgarian Orthodox Church are our saviors. Noble people who helped its Jewish citizens at a very difficult for them moment, a difficult moment for all the Jews across Europe,” he added.

The ceremony paid honor to all those 11,343 Jews, who were handed over to Nazi Germany from regions in what are now Macedonia, northern Greece and eastern Serbia, but were occupied and managed by Bulgaria during World War II.

In a letter to Shalom organization, Bulgaria's Prime Minister paid homage to the millions of Holocaust victims and the the courage of the hundreds of thousands of Bulgarians, who in 1943 defended the right to life of the Jews.

“The evil that has been done should not be forgotten because it can return with a vengeance. The good that has been done should not be forgotten as well because it can make the world a better place,” Boyko Borisov wrote.

The ceremony was also attended by the parliamentary deputy speakers, MPs, diplomats, including the Ambassadors of the United States, Russia, Hungary, many students and citizens. Flowers and wreaths were laid by the president, the prime minister, leaders of political parties, Sofia municipality, a number of organizations.


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BULGARIA'S UNESCO HEAD BOKOVA VISITS DEVASTATED HAITI

Bulgarian UNESCO Director-General Irina Bokova has started her two-day visit to Haiti for talks on re-building educational and cultural elements in the country.

According to local media reports Bokova will concentrate on the rebuilding of Haiti's historical cultural sites that were severely damaged after the devastating January 12 earthquake.

She will meet with Haitian President Rene Preval on Wednesday and will also hold talks with Haitian Prime Minister Jean Max Bellerive and Michaelle Jean, governor general of Canada, who arrived in Haiti on Monday.

Bokova will also attend a forum to discuss the rebuilding of the institutes of higher education in Haiti.

Up to 300,000 people may have been killed in the quake, Haiti's President Rene Preval has revealed, and some experts have called it the deadliest natural disaster of modern times.


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ENVIRONMENT

KOSOVO EARTHQUAKE FELT SLIGHTLY IN SOFIA

A 5,0 magnitude on the Richter scale was registered Wednesday afternoon in Kosovo, the European-Mediterranean Seismological Center announced.

The epicenter is 46 kilometers West of Pristina, 26 kilometers Southwest of Kosovska Mitrovica and 220 kilometers West of Sofia.

The earthquake was felt lightly in the Bulgarian capital but there is no information about casualties or material damage.

Meanwhile, Bulgaria's “Dnevnik” cites the Serbian Б92 radio reporting that the shock was felt strongly in Serbia and building damage is to be expected.


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MARCH BLIZZARD GRIPS BULGARIA

The heavy snow continues to create significant problems all over Bulgaria Wednesday, with the situation being the most serious in eastern Bulgaria.

Three municipalities in the Varna Region – Vetrino, Aksakovo, and Suvorovo, have declared emergency since Tuesday with many roads closed and bus services suspended. The roads are also closed for cars between the cities of Varna and Dobrich and to and from the city of Shumen. Trucks are required to have chains.

Part of the "Hemus" Highway near Varna is unaccessible. Many schools in these Regions have canceled classes even tough the Education Inspectorate decided to resume classes in the city of Varna, but says this decision might be altered, according to the situation. The Varna airport canceled two morning flights.

Cars, buses and trucks have been stuck in the heavy snow in many locations in northeastern Bulgaria and passengers have been rescued by the Civil Defense teams.

The Rishki mountain pass is closed for trucks; chains are required for automobiles.

The road surface on the “Trakiya” highway in southern Bulgaria is wet and covered with light snow. The stretch between the city of Burgas and the town of Karnobat is closed and traffic is diverted through the town of Aitos.

Roads are wet ans slippery all over the country and chains are mandatory in areas with higher elevation and in mountain passes.

Sofia airport is open and there are no delayed or canceled flights.

The traffic in the Bulgarian capital Sofia is currently impeded, even though the major arteries have been cleaned up. Public transportation is experiencing delays. Drivers have been advised to be extra careful because roads remain slippery. Pedestrians face treacherous walking for many sidewalks still haven't been cleaned.


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HIGH WAVES HIT BULGARIA BLACK SEA COAST

Very high waves have hit Bulgaria's Black sea coast and the beach resorts near Varna and Burgas Wednesday, the Bulgarian National Radio, BNR, reports.

In the “Sunny Beach' resort near Burgas, the waves have reached the front-water hotels and have taken away several barges. In the northern Black Sea region, the storm had destroyed the water collector of the purification station of the beach town of Kranevo and has broken boats and port equipment near the towns of Shabla, Balchik and Kavarna.

Meanwhile, all municipalities in northeastern Bulgaria, except Aksakovo and Provadiya, near Varna, lifted the emergency situation declared earlier over the blizzard that gripped much of Bulgaria Monday and Tuesday.


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CRIME

BULGARIA CHIEF PROSECUTOR CALLS FOR JUDICIAL SYSTEM REFORM

Bulgaria Chief Prosecutor Boris Velchev has called again for a major reform of the prosecution system in the country.

Velchev told reporters Wednesday that the reform should be be geared towards the decentralization of authority of the Supreme Cassation Prosecutor's Office.

He stated that the system would be much more effective if the Chief Prosecutor only exercised control over appellate prosecutors, who in turn can control their respective appellate districts.

“Currently the Chief Prosecutor controls all of the Prosecutors in the country – over 1700 people, which is a very difficult task, “ Velchev added. He concluded that any reform would require a change in the Constitution.

Velchev also suggested ways to improve the work of the Supreme Judicial Council - For example to create two separate boards - one composed of judges and one of prosecutors to meet in a general assembly when important issues in the judiciary need to be decided.


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BULGARIA EX TOP TAXWOMAN OFFICIALLY CHARGED ON 4 COUNTS

The Sofia City Prosecutor filed Wednesday official charges against the former Director of the Bulgarian National Revenue Agency (NRA), Maria Murgina.

Murgina is charged on 4 counts – 2 for criminal breach of trust, 1 for putting employees under duress and 1 for a false property declaration.

In April – June 2006, the former NRA Director had used her position to give illegal directions to two NRI high-ranking employees thus commuting breach of trust. The duress charge stems from Murgina, allegedly, forcing the Director of the Regional NRI Office in the Danube city of Silistra to resign. The 4th charge comes over false data in her declaration submitted with the National Audit Office.

The probe against Murgina was launched in February 2009, after the State Agency for National Security (DANS) stripped the former NRA Director of her right to access classified information and amidst mounting accusations of huge organized draining of Value Added Tax (VAT) and political cover-up.


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SPANISH POLICE BUST BULGARIANS IN BANK CARD OPERATION

Spanish police have busted a criminal group including Bulgarians involved with credit card duplication with the aim to drain local bank accounts in Palma de Mallorca.

The police made 13 arrests late Tuesday of a group of Spanish, Bulgarian and Bolivian citizens, El Mundo reported. It is alleged that the forged bank cards had already raked in millions of euros for the group.

A communique from the Spanish National Police stated that the operation against counterfeiters under the code name ‘Bullet’ is continuing.

On Tuesday 8 properties were searched in Palma de Mallorca and a large number of credit cards, cash and computers were confiscated.


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INDIAN WITH FAKE BULGARIA PASSPORT BUSTED FOR CYPRUS CORPSE THEFT

An Indian man, with a fake Bulgarian passport, is allegedly amongst the 3 people arrested for the theft of the corpse of Cyprus's ex-President Tassos Papadopoulos.

Police said they had arrested two Greek Cypriots and a foreign national on suspicion of involvement in the theft.

One of the Greek Cypriots was already serving a prison sentence for other offences, a spokesman said. The men are set to appear in court later on Wednesday.

The body was stolen three months ago and found in a cemetery in Nicosia late on Monday after an anonymous tip-off. DNA tests confirmed it was that of Papadopoulos.


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INTERVIEW

SEYCHELLES MINISTER JOEL MORGAN: SOMALI PIRATES DAMAGE BOTH MARITIME TRADE AND REGIONAL STABILITY

Click here to read the story:
www.novinite.com/view_news.php?id=114068


VIEWS ON BG

UK SUN: DIMI FEELS LIKE A LOSER AT UTD

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www.novinite.com/view_news.php?id=114031


US BLACK SEA MILITARY BUILDUP COULD TRIGGER MISSILE WAR

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www.novinite.com/view_news.php?id=114062


SCAM ALERT: ITâS NOT THE BANK CALLING

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www.novinite.com/view_news.php?id=114065


EDITORIAL

BULGARIAN PRESIDENTIAL IMPEACHMENT IN A TEACUP

The latest political “scandal” to occupy public attention in Bulgaria is not really a very exciting one even though, supposedly, much is at stake – the potential impeachment of President Parvanov initiated by the ruling GERB party of Prime Minister Borisov.

Why do the GERB party and its allies from the rightist Blue Coalition and the nationalist Ataka party want to impeach Parvanov?

This time (see below for the previous time) it all started when in a TV talk show Finance Minister (and Deputy PM) Simeon Djankov hinted that the President was a secret billionaire. When asked by the hosts if it was true that Parvanov was a young billionaire, Djankov said “He certainly is not young.”

The Presidency reacted pretty strongly which led Djankov to go to the President’s office last Friday in order to talk the situation over with Parvanov. Even though Djankov said after the meeting that the conflict had been resolved, this opinion was not share by the President whose administration swiftly released the transcript of their conversation publishing it on its website.

This was a pretty nasty move. First, because this is perhaps the first case ever in Bulgaria’s history of a transcript of a conversation between two politicians of such rank which was released immediately and on the website of one of the two institutions involved. This double standard – i.e. the fact that this was a precedent – led the rightist Blue Coalition to demand the release of tapes of Parvanov’s talks with the Russians over the large-scale energy projects, and with other Bulgarian politicians about the forming of the Stanishev government – because clearly Bulgaria no criteria when to release such transcripts.

Second, because the Finance Minister had not been notified or asked about the release of the transcript. Third, because the trascript made Parvanov seem as the winner in the dispute because he behaved rather aggressively and even interrupted Djankov a couple of times.

It is clear that Djankov made made an unpleasant hint about the President in that talk show – even though he later tried to portray it as a joke. But it is also clear that Djankov is not really good at being aggressive – and was actually rather apologetic during his meeting with Parvanov – even though he bluntly refused to apologize for his words saying he did not make the claims the President accuses him of.

Clearly, the ruling party had to react proportionally in order to help Djankov save face – otherwise it would seem as though he went to the Presidency to be shouted at by the Parvanov, and hardly managed to say anything in his own defense. Thus, on Wednesday the GERB party came up with the idea to start an impeachment procedure.

Now, this is not the first time Parvanov’s presidential seat comes under such menace. In October-November 2009, just three months after the Borisov government came to power, it was much more likely that he could be impeached.

The reason then had to do with the recall of Bulgaria’s Ambassadors to the USA and Turkey over violations they allowed in the July Parliamentary Elections. Parvanov, however, refused to okay the recall, leading the rightist majority to get ready to impeach him.

The moment would have been much better for GERB if they really wanted to do that because they had a lot of traction after just winning the elections, they had one more rightist ally – the conservatives from RZS who group later fell apart and they turned against them – and a much clearer motive. Eventually, however, the problematic Ambassadors resigned, and the Parliament dropped the impeachment issue off the agenda – fueling suspicions that there had been some deal between Borisov and Parvanov, or that Parvanov was simply “brought into line”.

This time, however, it would be much harder to impeach Parvanov. For one thing – the motive for initiating the motion is rather murky – GERB claim the President violated the Constitution by taping Finance Minister Djankov without his agreement.

While this raises a whole bunch of legal issues in Bulgaria about the taping of talks between officials, it is hardly a convincing argument even for people with little legal knowledge – just because every single meeting of this sort has shorthand records that Djankov was well aware of, and those are not forbidden by the Constitution. There seems to be little legal clarity about the double standards of releasing such transcripts to the public to achieve certain political goals.

Second, the GERB party will hardly muster enough Parliamentary support for an impeachment decision. It needs to have 60 MPs sign a petition to demand a debate on the issue. Then in the debate, it needs to have a majority of two-thirds, or 161 votes out of 240 MPs in order to pass an impeachment vote, which will throw the decision in the hands of the Supreme Constitutional Court. Together with its allies, the GERB party has 152 votes.

Even if it somehow got the other nine votes from the staunch opposition – Parvanov’s Socialist Party, the ethnic Turkish DPS, and the conservative RZS, it is not very likely that the Constitional Court will rule in favor of impeachment.

The GERB party really cannot afford to suffer such a possible defeat. At the same time, if Parvanov got impeach, this will either make his deputy, former Warsaw Pact general Angel Marin, the President, or will lead to early Presidential Elections. Both scenarios are rather unfavorable for Borisov, especially the second one, which will hardly allow his government to meet the expections of its voters.

Finally, there was Borisov himself mentioning late on Wednesday that he didn’t feel like having Marin as President.

The GERB party does not really seem to have any intention to impeach Parvanov; they just appear to want to carry out a short and decisive punitive campaign. As of now it is still unclear where along the way the charges against the President would be dropped but the ruling party would hardly risk holding a vote in which it did not muster enough votes, or seeing a Constitutional Court ruling unfavorable to them.

Allowing either of those would be a serious blunder for them. As will be the actual impeachment of Parvanov and going for early Presidential elections – which will totally throw the Bulgarian nation off course at a moment when it has got to focus on overcoming the crisis, fighting corruption and crime, and finally absorbing EU money for the public good.

Unless Borisov’s party commits any major mistakes, the second motion to impeach Parvanov will share the fate of the first one – it will make a few headlines and will descend into oblivion.


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SMILES

CEO

A fellow had just been hired as the new CEO of a large tech corporation. The CEO who was stepping down met with him privately and presented him with three numbered envelopes. "Open one of these if you run up against a problem you don't think you can solve," he said.

Things went along pretty smoothly, but six months later, sales took a downturn and the CEO was really catching a lot of heat. About at his wit's end, he remembered the envelopes. He went to his drawer and took out the first envelope. The message read, "Blame your predecessor."

The new CEO called a press conference and tactfully laid the blame at the feet of the previous CEO. Satisfied with his comments, the press - and Wall Street - responded positively, sales began to pick up and the problem was soon behind him.

About a year later, the company was again experiencing a slight dip in sales, combined with serious product problems. Having learned from his previous experience, the CEO quickly opened the second envelope. The message read, "Reorganize."

This he did, and the company quickly rebounded.

After several consecutive profitable quarters, the company once again fell on difficult times. The CEO went to his office, closed the door and opened the third envelope. The message said, "Prepare three envelopes."


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WORLD

IRAN SLAMS US FOR 'CREATING TERRORISTS' IN AFGHANISTAN

Iranian President Mahmoud Ahmadinejad has accused the US of playing a "double game" in Afghanistan after the US used the same term to condemn Iran's role.

Ahmadinejad said the US had "created terrorists and now say they are fighting them", as he appeared with Afghan President Hamid Karzai in Kabul, the BBC reported.

US Defence Secretary Robert Gates, who is also in Kabul, has accused Iran of giving the Taliban low-level support.

Later, Karzai heads to Pakistan for talks with another key neighbour.

This is Ahmadinejad's first visit to Afghanistan since both he and Karzai were re-elected last year.


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GREECE JOINS US VISA WAIVER PROGRAM

Greece will join 35 other nations on the US Visa Waiver Program (VWP), President Barack Obama announced Wednesday.

Obama used a Greek Independence Day reception at the White House to announce the US decision. Joined by the Greek Prime Minister George Papandreou and His Eminence Archbishop Demetrios, the Primate of the Greek Orthodox Church in America, Obama said the solidarity between the US and Greece continues.

"As the Prime Minister and I discussed this afternoon, Greece's participation in the Visa Waiver Program will strengthen security in both our countries -- and whether it's to do business or visit family and friends, it will now be easier for our Greek friends to visit the United States" Obama continued.

According to the State Department, participation in the VWP enables Greeks to travel to the US for tourism or business for stays of 90 days or less without obtaining a visa.

Greece joins countries such as Hungary, Slovakia, Slovenia and the Baltic countries in the VWP, Bulgaria however remains outside the program despite its declared interest.


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US CONDEMNS ISRAEL EAST JERUSALEM BUILDING PLANS

US Vice-President Joe Biden has condemned Israel's approval of 1 600 new homes for ultra-Orthodox Jews in East Jerusalem.

Biden, in Israel as part of US attempts to kick-start the peace process, said it was "the kind of step that undermines the trust we need", the BBC reported.

Israel insisted it was a procedural step not connected to the visit.

Biden is now due to meet Palestinian President Mahmoud Abbas and Prime Minister Salam Fayyad in the West Bank.

Israel's approval of the new housing units has infuriated the Palestinians, who want East Jerusalem as the capital of their future state.

The international community considers East Jerusalem occupied territory. Building on occupied land is illegal under international law, but Israel regards East Jerusalem - which it annexed in 1967 - as its territory.


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BALI BOMBINGS MASTERMIND 'KILLED' IN JAKARTA POLICE RAID

The Indonesian president, Susilo Bambang Yudhoyono, has confirmed that the terror suspect Dulmatin was killed in a police raid in Jakarta.

Indonesian security forces said they had killed three suspected militants in two raids on Tuesday.

DNA tests will now likely be used to confirm that Dulmatin is dead – he is the alleged mastermind behind the 2002 Bali bombings that killed 202 people.

Yudhoyono is on a three-day trip to neighbouring Australia - The killing of Dulmatin will be greeted with particular enthusiasm there - half of the 202 casualties in the Bali bombings were Australian.

The raids were said to be linked to an ongoing operation against militants in Aceh province that has brought a number of arrests.


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