BAD ENERGY MANAGEMENT AND LACK OF HUMAN RESOURCES ARE THE TWO MAIN PROBLEMS OF BULGARIAN BUSINESS

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The reduction ratio of the first pension is unfair, damages people, it should be reduced three times

“Energy is one of the two serious problems for the Bulgarian industry and Bulgarian business. We pay the most expensive price for electricity in the EU, even without including the “Debt to the public” supplement, which for the most part is the “Debt to the so-called” liability. US headquarters. ” And this, given that we have huge standby capacities that could operate and sell electricity at the price of BGN 100 per megawatt hour, as well as export such electricity. Instead, the capacities stay, they accumulate losses, and we import electricity at 110 leva. A mismanagement of our narrow market leads to an absolutely abnormal situation facing the Bulgarian industry. This translates immediately to competitiveness and the ability to increase people’s pay. The second problem is related to 25the lack of human resources. Over the next 20 years, Bulgaria will lose from the labor market nearly 50,000 people annually. Our country must start taking adequate measures very quickly. For us, the main priority for recruiting human resources is the Bulgarian diasporas abroad, but these alone will not be enough. We need to start using good European models like Germany, Poland and the Czech Republic. The Employment Agency should no longer be an agency that exports Bulgarian workers abroad, but an agency that imports foreigners to Bulgaria at the request of Bulgarian companies. “

This was announced by BICA Chairman Vassil Velev during the official presentation of the priorities of the Association of the Organizations of  the Bulgarian Employers (AOBE) for 2020. resources and overall energy reform. These include accelerated construction of e-government, combating the informal economy, Bulgaria’s accession to ERM II, Schengen and the OECD, the abolition of the temporary measure for employers to pay the first three days of sick leave, changes in labor and social security legislation, easing the import of foreign workers, negotiations to settle relations with the so-called. US headquarters, etc.

According to Vassil Velev, several actions should be carried out in synchronization in the energy sector in the first half of the year. These are the protection in Brussels of a capacity mechanism based on an analysis of the current situation in the country and the region, termination of contracts with the so-called. US power plants, capacity auctions, phased liberalization of the home market and protection of vulnerable consumers. The capacity and efficiency of state and regulatory bodies need to be further enhanced, as well as the future construction of new capacities only on a market basis. To increase the energy connectivity of Bulgaria in order to benefit from the large European market, where the prices of energy resources are much lower.

Other extremely important topics included the request to change the calculation of the First Pensions Reduction Ratio. According to the president of BICA, because of our legislation at the moment, those born after 1959 will be unfairly reduced their first pillar pensions – by the NSSI. This is because the coefficient now reduces the first pension for the whole period of 40 years of service, although in the first 20 years there were no additional pension funds in our country and all insurance contributions were paid to the National Social Security Institute. In addition, during all these years the NSSI deficit was also financed through the taxes of the same people, which the reduction factor did not take into account.

The proposal of the employers’ organizations is to reduce the reduction factor three times. This will achieve justice and strengthen and develop the second pillar, which is crucial given the aging population of Bulgaria and the trend that fewer and fewer working people will have to pay pensions to more and more retirees through the NSSI.

Vassil Velev also stated that Bulgaria should advertise with its products and with the success of its companies both abroad and in our country. To subtract success from anonymity. Show inspiring examples of success. “This is very important for investors as well as for attracting and returning Bulgarians back to the country,” he concluded.