site.btaMedia Review: November 11

POLITICS

Former interior minister Rumyana Bachvarova said in an interview for bTV that there is a crisis of governance in the country, because regulatory frameworks are being violated. Bachvarova said that the 2026 draft budget is based on "accounting logic", as its numbers are balanced but not the political decisions behind them. She stated that no budget has seen such widespread opposition in the last 15 years and added: "Now, instead of austerity and stability, the public sees extravagance and contradictions – millions spent on sports halls but underfunded [sports] federations and key sectors." One of the negative effects of drawing up such a budget is the relocation of entire businesses outside the country.

Bachvarova believes that the increase in salaries in the security forces is outrageous. She pointed out that even though the Anti-Corruption Commission was supposed to be closed, the budget provides for increased salaries for the institution.

According to the former minister, behind the decisions in next year's financial framework is a person who easily disregards public opinion. She said: "Obviously, it is not [GERB leader Boyko] Borissov, because he listens and takes such reactions into account. The fourth partner in this coalition—the MRF [New Beginning], led by Delyan Peevski and Jordan Tzonev—a prominent financier from the movement, obviously holds this position. Those in power owe us an explanation regarding this budget, and we expect answers." Bachvarova concluded: "Unfortunately, these decisions are not discussed publicly. This lack of clarity creates social tension. Those in power do not realize what is happening in society."

* * *

On the Bulgarian National Radio (BNR), economist Georgi Ganev said that the budget will be adopted without broad agreement, noting that there is no legal requirement for employers' or trade unions' approval. "Only the National Assembly has the constitutional authority to pass the budget; the Tripartite Council is purely a consultative body," said Ganev. He added that the budget is not balanced and expressed concern that capital investment programmes could continue past practices of misused funds rather than creating real public benefit. "Because of such budgets, we will remain poorer than we could be, though we will avoid a full-scale financial crisis," said Ganev.

* * *

Former minister of economy and energy and current Mayor of Sofia's Sredets District told bTV that the decision to appoint a special administrator for Lukoil seems to be the most appropriate move from the perspective of such a natural person, because it signifies efforts to continue the refinery's operations. He added: "The discussion between experts and politicians is focused mainly on the part that grants the right to manage assets, which is extremely thin legal ice. I would not recommend resorting to such actions. In the future, when circumstances change and there are no sanctions, it will be viewed quite critically on the international market, especially by the owner of Lukoil." Traykov warned that if Lukoil closes, a huge amount of fuel will disappear, and more specifically, fuel with the lowest cost for the consumer. In his opinion, while the purpose of the sanctions on Lukoil is to prevent the company's profits from funding Russia's war, this can be achieved by collecting these profits separately and transferring them to Lukoil's potential new owner at a later stage.

* * *

BNR did an interview about the government’s response to US sanctions affecting the Lukoil Neftochim Burgas oil refinery. Political analyst Teodor Slavev commented that the way the State reacted with the appointment of a special commercial administrator with broad rights, raised questions about transparency and the rule of law. "Decisions of such importance for Bulgaria cannot be made in 30 seconds," said Slavev, referring to the rapid adoption late last week of amendments to the legislation regulating the administrative control of economic activities related to oil and petroleum products.

* * *

BNR did an interview with political analyst Georgi Prodanov about the political context surrounding the proposed state budget for next year. He argued that the key issue in the budget debate is trust - or lack thereof - in the government and within the ruling coalition. "The planned large deficit, the increase in public debt, and the higher incomes for certain groups—especially in the public sector—are often met with scepticism," said Prodanov. He noted that these groups include not only police officers, military personnel, and civil servants, but also teachers and others whose salaries are state-funded. According to him, the prolonged debate over the budget reflects the ruling coalition's low public credibility. He added that, due to the government's internal fragility, different actors are now able to push through certain budget changes, including pressure from employers to avoid the planned tax hikes.

* * *

BNR did an interview about the link between national security and democratic resilience with Mariyan Sabev from the Center for the Study of Democracy. "Security and democracy are two sides of the same coin. Without the rule of law and accountability, deterrence cannot exist," said Sabev. He spoke ahead of a conference entitled "Defence and Democracy Dialogue: Fortifying Freedom", organized by the Center and bringing together leaders from Bulgaria, the EU, and NATO, as well as security and civil society experts. Sabev emphasized that EU Member States should reduce strategic dependencies on external actors for energy, technology, and critical resources while preserving competitiveness. He highlighted the need to balance cooperation with partners outside Europe with the defence of democratic values that unite the EU. The discussion also addressed the shrinking civic space, the impact of hybrid threats, and the importance of technological and energy sovereignty for protecting citizens and European unity. Commenting on the Lukoil case, Sabev said that the government had anticipated the company's sale of European assets, but when the deal did not proceed, authorities had to act quickly to ensure the refinery's stable operation. "I believe these actions were timely and necessary," said Sabev. He added that while the absence of judicial control is a "necessary evil," mechanisms for accountability must still be established, including parliamentary oversight of special management appointments.

* * *

24 Chasa quotes the Ambassador of the Russian Federation in Sofia Eleonora Mitrofanova, who in an interview for TASS declared the actions of the Bulgarian authorities against Lukoil to be hasty and legally questionable. The Ambassador said: "The situation with Lukoil is very serious and alarming. Lukoil wanted to sell its European holding company, which would have been the best option, but the deal fell through. The sanctions are due to come into force on November 21, so Bulgaria is rushing to remove the refinery from its jurisdiction." She warned that any interruptions at the Lukoil refinery in Burgas, on the Black Sea, would have serious consequences and could cause a fuel crisis. Mitrofanova concluded: "Given the country's upcoming transition to the euro, both economic and political difficulties can be anticipated."

* * *

According to an online poll conducted by the daily Trud among 4,550 respondents, if President Rumen Radev was to head his own party, he would win the next elections, as 47.36% of the respondents said they would vote for it. Another 47.56% said they would not, while the remaining 5.08% shared that they do not vote. Considering that the vote that does not support Radev would be split by the remaining candidates, Radev seems to be a favourite to win future elections, if he chose to run. Even though he has stated he does not plan to establish his own party, rumours of a "presidential project" have been persistent in recent months, the daily wrote.

ECONOMY

Hrvoje Stojic, Chief Economist at the Croatian Employers' Association, said in an interview for 24 Chasa that when Croatia adopted the euro in the beginning of 2023, it monitored closely and in depth the price dynamics over the first three or four months. The inflation there was higher than the eurozone average, which proves that the adoption of the euro is not the main reason for the rise in prices. While inflation was double-digit at one point, the currency change added only 0.4 percentage points. Stojic added that labour productivity in Croatia is low, which when combined with strong wage growth, especially in the public sector, can lead to spikes in inflation.

The expert said that many Eastern European economies, including Croatia and Bulgaria, have relatively low labour productivity, and cannot compete with Germany for example, since German companies, especially the larger and stronger ones, are able to significantly increase their production and create higher added value thanks to their flexibility, which can ease inflationary pressure.

Commenting on the Croatian government's decision to put a cap on the prices of basic foodstuffs, Stojic said that this was a very short-term tactic with an unfortunate outcome for local food production. He explained that maintaining retail prices while continuing to operate at low levels of productivity meant that production quickly became unprofitable. The combination of rising prices of raw material and fixed final product prices leads to shrinking profit margins. Meanwhile, bigger foreign companies, and especially those operating in large European economies, benefit by exporting their food surpluses below market price, which further harms local producers.

When asked about the Croatian people's reaction to the high inflation rate that coincided with the euro adoption, the expert said that the Croatian government prefers to blame retailers while also raising wages. Croatia has effectively doubled public sector wage costs over the past five years. These costs amount to 14% of GDP, which puts the country in second place in the EU after Denmark. Stojic pointed out, however, that Denmark is a wealthier country with better quality public services.

The economist warned that enforcing higher wages is killing companies that cannot boost their productivity. He pointed to a company that manufactures leather seats for aviation and major car manufacturers and is one of the country's top five biggest exporters. It used to boast an annual turnover of EUR 300 million, which has since shrunk to EUR 50 million. Smaller companies that cannot afford to pay the increased wages are forced to lay off their staff.

* * *

Tsvetan Filev, member of the Board of Directors of the National Association of Tabacco Growers-2010, quoted by the Bulgarian National Television (BNT), reported that tobacco growers in Bulgaria are deeply concerned about the expected termination of national subsidies for tobacco cultivation. Tobacco farmers strongly oppose the recommendations of the World Health Organization (WHO), which threaten tobacco cultivation in the European Union. A letter signed by Filev and addressed to the Ministry of Agriculture and Food reads: "In the country's budget for 2024, taxes on tobacco products, for which we as farmers produce the raw tobacco, generated over BGN 4 billion, and I do not think that the State [...] would deprive itself of these revenues every year." The letter warns that while Bulgaria is producing some of the finest tobacco in the EU today, Bulgarian companies may be forced to use imported tobacco of lower and dubious quality, if Bulgaria chooses to go with the suggestions made by the WHO. BNT points out that the European Union has already announced a new common tax on tobacco products of 15% and proposed increased excise duties of 139% for cigarettes and 258% for smoking tobacco.

* * *

Dnevnik.bg has a story about the business with second-hand clothing. "The second-hand clothing market is not what it used to be. The only ones seeing an increase in interest in second-hand clothes are those offering products in the higher-end segment, where brand and quality, rather than low price, are the main drivers. Traders in the mass market continue to face difficulties: following a wave of store closures, the survivors are shrinking their margins. One global fast-fashion retailer, which until recently collected used textiles, has announced that it will stop doing so in Bulgaria. While the market is adjusting to the needs and desires of consumers, the State continues to do nothing to implement separate textile collection, a requirement that has been in place since early 2025. At the very least, it could support the efforts of businesses and municipalities trying to make use of worn-out clothes, but so far, they are only calculating losses," the story reads.

SOCIETY

BNR did an interview about the ongoing efforts to adopt a national law on volunteering in Bulgaria. According to Zahari Yankov, Senior Legal Consultant at the Bulgarian Center for Not-for-Profit Law, all three proposed draft laws share many common points and move in the right direction, with only minor details left to clarify. Yankov noted that the country has awaited a legal framework for volunteering for years, which would allow for a structured state policy in the field. The bills have already passed their first reading in Parliament, and there is optimism that the new legislation could be adopted by the end of the year. He explained that clear regulation is needed to provide legal certainty for both organizations and volunteers, including issues such as insurance and liability. Another debated topic is whether a register should include volunteers themselves or only the organizations coordinating them. Representatives of civil society organizations, including Rumyana Ivanova and Yordanka Slavova from the Biodiversity Foundation, also spoke on BNR, emphasizing the importance of recognizing volunteers’ contributions and supporting organized community initiatives. According to them, environmental causes most easily attract volunteers.

WASTE MANAGEMENT IN SOFIA

Duma daily leads with a report about Sofia "facing a potential waste management crisis" after new legal complaints delayed the signing of cleaning contracts for several districts of the city. According to the report, appeals filed with the national competition authority have temporarily halted agreements for waste collection services, creating uncertainty ahead of the expiry of existing contracts in late 2025. The municipality has stated that it will maintain garbage collection using rented equipment and its own resources until new contractors are approved. City officials also said that waste removal in other affected areas remains under control, while separate appeals have been lodged concerning the tender for winter road maintenance in the nearby Vitosha mountain.

* * *

Mediapool.bg reports that Sofia Municipality will rent garbage trucks and snowploughs to ensure waste collection and snow removal in five districts which are currently without regular cleaning contracts. The affected areas include the districts of Lyulin and Krasno Selo, where cleaning services have been disrupted since October 5, as well as Poduyane, Slatina, and Izgrev, which are expected to lose regular service after December 1. According to Sofia Municipality, with the support of the district mayors of Poduyane, Slatina, and Izgrev, the city has an option to rent 15 large waste collection trucks, which should be sufficient to service the containers for mixed domestic waste in these districts.