Macroeconomic policy

Definite prevention of any attempts to revise the currency board mechanismboth in terms of exchange rate level and in terms of time constraints, mitigating conditions, etc.
– Periodically, in times of political and parliamentary crisis, taking advantage of public discontent, voices are being raised against the currency board mechanism with the specious explanation that economic growth in Bulgaria can be facilitated through the use of controlled inflation process. This argument is deeply flawed and categorically harmful to our society – BICA will consistently and systematically provide strong support to the existing monetary model in our country.

• Financial stability and predictability by adhering to prudent fiscal discipline and implementation of the law on the state budget:
– BICA support measures to financial discipline, balanced budgets and fiscal stability at low tax rates – these are the main factors for overall financial stability, for attracting investment and ensuring the conditions for economic growth. The predictability and stability of the tax policy in the country are essential for building and maintaining public trust and confidence;
– BICA invariably remains on the position that maintaining the proportion of funds reallocated from the state budget below 40% is the most important incentive to improve the efficiency of state administration and a has a major anti-corruption effect;
– BICA will support the retention of flat direct taxes at 10 percent and the preservation of the dimensions and proportions of contributions for social security funds and the preservation of health insurance contributions;
– Equal tax dialogue process with the possibility of arbitration and agreement;
– Termination of the vicious practice of VAT re-collection from legitimate traders under the “joint responsibility” rule instead from offending traders to whom is due;
– Transparency and efficiency in the spending of funds by parity representation of the government and the social partners in the management and control bodies of the public funds.

• Effective control over public spending, as well as over companies with monopoly power resulting from state regulation:
– BICA consistently argues that only the effective public control over public spending is able to eliminate the established corrupt practices that cumulatively lead to substantial seizure and unfair redistribution of income;
– BICA supports the efforts to strengthen and develop the implementation of program budgeting. Well-structured program budgets of ministries and departments guarantee the efficiency of budget expenditures;
– As an organization with members – the leading public companies in Bulgaria, as well as a member of the European Centre of Employers and Enterprises with Public Participation and of Enterprises providing Services of General Interest (CEEP), BICA has always strongly insisted that monopolistic companies should be required to disclose information under POSA and welcomes the recent legislative changes to ensure this. The principles of the National Corporate Governance Code should be mandatory for these companies – it leads to publicity, traceability of pricing, transparency in the expenditure of these companies, and civil society will have easy access to information to which is legitimately sensitive. This measure will achieve long-stabilizing effect on the whole chain of pricing of products and services that these companies provide.