site.btaMedia Review: November 17

EU REPARATIONS LOAN FOR UKRAINE

On Thursday, European Union finance ministers agreed that funding Ukraine with a reparations loan based on immobilised Russian assets would be the most "effective" of three options being considered by the European Union to help Kyiv, Reuters reported.

Earlier on Thursday, European Commission President Ursula von der Leyen told the European Parliament that the EU could either borrow the money needed to cover Kyiv's needs in 2026 and 2027 against the collateral of its long-term budget, or each EU country could borrow on its own and extend a grant to Ukraine.

The third option was a proposal from the Commission to organise a loan that would effectively become a grant, on the basis of the Russian central bank assets frozen in the EU.

Valerie Urbain, the Chief Executive Officer of the Belgian securities depository Euroclear, warned the European Union that the institution may take legal action if the EU attempts to seize the EUR 193 billion in Russian assets in its vaults. The head of the financial institution told the French daily Le Monde that the planned illegal confiscation of Moscow’s money would severely weaken Europe.

“The most important things for Euroclear are reliability and trust,” the top banker said, emphasizing: “We are a key link that must remain infallible in the name of stability in the financial markets, and anything that resembles confiscation contradicts international law regarding the sovereignty of state assets.”

German Chancellor Friedrich Merz has proposed creating a mechanism to provide EUR 140 billion in aid to Ukraine using the frozen Russian assets in Euroclear, but without confiscating them. Since then, Merz’s proposal has been at the center of intense discussions at the highest levels of European power in Brussels. The heads of state and government of the EU must make a decision on this sensitive and difficult issue at their next summit on December 18–19 in the Belgian capital.

Euroclear is not the only institution holding “frozen funds” of Russia’s Central Bank. For example, nearly USD 300 billion (EUR 258 billion) of Russian money is stored in Japan, the United Kingdom, Switzerland, and even the United States. The Japanese, for instance, openly rule out any confiscation. “These countries remain silent,” the top banker says, “which is why the EU must stop attacking Euroclear and Belgium with such demands!”

Belgian Prime Minister Bart De Wever, after the last meeting of the European Council on October 23, recalled that even during World War II the assets of central banks were not confiscated. As for the possibility that Belgium may one day be ordered by Russia to repay those EUR 140 billion given to Ukraine without any guarantees, the prime minister commented: “I am neither able nor willing to pay EUR 140 billion - especially since none of the 27 EU countries is willing to guarantee this amount proportionally to the size of its own economy!”

BULGARIA’S SIX-MONTH REPRIEVE FROM US SANCTIONS ON LUKOIL

“Bulgaria is a strategic partner of the United States. A strategic partner cannot bring Bulgaria’s economy to its knees,” said Asen Asenov, a lecturer at the American University in Washington, speaking on Bulgarian National Radio regarding the exemption received from the American sanctions for Lukoil’s Bulgarian operation.

“In my view, the issue lies in the strategic partnership and in the understanding that the Bulgarian economy would be driven to a standstill. Neftochim is not just an enterprise, it is a facility that could collapse the entire Bulgarian economy and push it into a major crisis, which could then lead to a political crisis,” he explained. According to him, the Russian economy is experiencing difficulties, but no one should be underestimated. Asenov believes that everything is rooted in Russians’ national psychology.

“The US has strategic interests with Russia. They are connected to bringing Russia over to the side of the US in its global confrontation with China,” he said.

POLITICAL COMEBACK FOR FORMER MRF LEADER DOGAN

Speaking on Bulgarian National Radio, Taner Ali, one of the four co-chairmen of the newly established Alliance for Rights and Freedoms (ARF), said: "We expect all kinds of attacks. But I think that in a normal country in the 21st century, such things are unacceptable. The more people are threatened and repressed, the stronger their inner sense of justice becomes. I don’t think this will be a problem for our voters and supporters. I am convinced that politics cannot be done through threats. This will be a reflection of many things that happened in the last one or two years." He was asked whether he believes some might be tempted or threatened by Delyan Peevski and give up on joining the ARF.

A new party, Alliance for Rights and Freedoms (ARF), was founded on Saturday, with Ahmed Dogan as its Honorary Chairman with Operational Functions. The top ARF leadership, in addition to Dogan, includes four co-chairs: Taner Ali, Dimitar Nikolov, Sevim Ali and Khayri Sadakov.

Everything required by procedure and by the Political Parties Act has been complied with, Ali said, adding: “We are preparing the documents and will submit them to the court for registration in the near future.”

“The collection of 2,500 signatures will not be a problem for the ARF. We can gather those signatures from just 3–4 regions within two days. People from all over the country are calling us. There is enthusiasm. Our true, authentic supporters are with us,” he said.

In 2024, the Movement for Rights and Freedoms, founded by Dogan, split into two factions. One of them remained loyal to Dogan, and the other was headed by Delyan Peevski.

2026 DRAFT BUDGET

TrudNews.bg publishes the second part of an analysis by economist Dimitar Chobanov of the 2026 state budget draft, which concerns the planned revenues and the measures for increasing them.

Chobanov says that the most significant increase will come from social insurance contributions. The pension contribution will be raised by 2 percentage points, and the minimum insurance threshold will rise by 12.6% to BGN 1,213 BGN (EUR 620), while the maximum will increase by 11.4% to BGN 4,600 (EUR 2,353 EUR). As a result of these changes and economic developments, revenues from social insurance contributions are expected to grow by 15.6%, and those from health insurance contributions by 8.7%, reaching a total of EUR 12.1 billion.

If these expectations are to materialize, the cost of these changes for businesses and people relying on income from labor will be significant. Under otherwise equal conditions, employers’ labor costs will increase, while workers’ net incomes will decline. For example, with a gross salary of BGN 2,800 in 2025, the net salary is nearly BGN 2,173, and labor costs amount to BGN 3,338. Under the new rates in 2026, the net salary decreases by more than BGN 22, and labor costs increase by more than BGN 31 per month. To maintain the same net salary in 2026, the employer would need to increase expenses by about BGN 66 per month; and if they want to maintain purchasing power (expected inflation of 3.5% according to the Finance Ministry), they would need to increase expenses by over BGN 185 per month.

The measure is a bad signal for investors regarding the predictability of the business environment, as the 2 percentage point increase was initially planned to take effect from 2027. If this proposal is adopted, it will occur shortly before the end of the calendar year, when corporate planning for 2026 has long been finalized. Since labor costs are a major component of planning, the process would have to be repeated. Thus, additional administrative burdens are created for businesses.

SOFIA'S CONTROVERSIAL PARKING REFORM

24 Chasa carries an interview with Ombudsman Velislava Delcheva, who says that she will send a letter on Monday to the mayor of Sofia Municipality and to the regional governor, in which she points out a number of serious issues related to the procedure of drafting and adopting the ordinance on doubling of parking fees in the capital.

Firstly, according to Delcheva, there are violations in the way public consultations were conducted. A survey was published solely on the mayor’s Facebook page. No such survey was published on the official Sofia Municipality page. Citizens also reported technical issues and inaccessibility, which calls the accuracy of the results into question.

Secondly, the problem of parking near hospitals has been seriously neglected. The report lacks an adequate analysis of how the new tariff conditions and the expansion of zones will affect citizens visiting medical facilities, especially people with limited mobility, patients, and their relatives. This clearly shows that the social and health impact of the change has not been sufficiently considered.

Thirdly, there are no real reasons given for expanding the zones and increasing prices. The report does not contain specific data, analyses, or evidence regarding the necessity of these changes, neither for traffic, air pollution, nor access to public transport. There is no information on the actual costs of maintaining the zones or the financial rationale for raising the fees.

The financial justification is incomplete and contradictory. At one point, it is claimed that the change does not require significant funds, while elsewhere over BGN 11 million in expenses are cited. 

A similar lack of justification has previously been a basis for courts to overturn municipal decisions in the country.

Delcheva will call on the mayor to return the decision for reconsideration and for a new well-justified project, subjected to a real and transparent public consultation. In turn, the regional governor, if the decision is promulgated, should exercise control over its legality.