site.btaGreen Transition Forum 5.0 Day 5

Various topics took centre stage on the last day of the Green Transition Forum 5.0. The forum took place at the Sofia Event Center and is organized by the Green Transition Forum and Dir.bg, with the Bulgarian News Agency as media partner. Among the central topic were the needs of innovators, innovation as a cornerstone of EU and CEE competitiveness, digitalization of industries and services, transforming higher education through innovation and scientific research, and competitiveness, economic development and effective public-private partnerships as a benchmark for the CEE region. 

Participants in the session From Policy to Practice: What European Innovators Need outlined the main challenges and necessary steps. The conditions for the successful development of European innovators and their business models require targeted actions, clear priorities and a supportive environment, the speakers said. The speakers at Friday’s session united around the need for a favorable environment for emerging and developing businesses.

"The question is how to accelerate innovation," Irina Obushtarova, co-founder and strategic advisor at The Recursive, said. According to her, unnecessary barriers should be avoided, and policies should be aimed at creating better conditions for innovators.

Svetoslava Georgieva, Chair of the EIC Fund, said the goal is to implement investments as quickly as possible. "2.1 billion is the amount that our colleagues from the European Investment Bank have already negotiated," she said. According to her, the fund is becoming one of the largest investors in Europe, with the planned funds reaching nearly EUR 5 billion.

Stefan Tzalov, investment manager at the European Investment Fund, emphasized the growth and good liquidity of enterprises. "So far, we have invested over EUR 45 billion across Europe," he said. One of the problems, according to him, is the insufficient liquidity of stock exchanges, which makes it difficult to secure capital. In Central and Eastern Europe, access to capital is difficult, which is why many companies migrate to Western Europe and the US at an early stage of their development, Tsalov explained. The fund's team is developing partnerships in Central and Eastern Europe, the Baltic and Scandinavian countries, he added.

Innovation as a Cornerstone of EU and CEE Competitiveness

The capacity of private funds is immense, said Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev. According to Donchev, there is a lack of public momentum and meaningful dialogue around the new economy. “There is no conversation happening about the new economy,” he said, emphasizing that while the drive for success is a powerful force, how and when society discusses and motivates it remains unclear. He argued that society traditionally lacks the courage needed for such discussions. Donchev said that artificial intelligence (AI) will be one of the key drivers of competitiveness for the economies that adopt it wisely, but warned that it will also bring significant disruptions to the labour market. “There are serious questions — what professional opportunities will be available for people affected by AI? But those who use it will have the advantage,” he noted. He added that while Europe focuses on regulating new technologies, the US and China are heavily investing in the latest models. “I’m not saying there should be no regulation,” Donchev clarified, “but we need a balance between control and innovation.” “I wish we were bolder,” he said. Donchev acknowledged that skepticism toward progress is natural, especially when it comes to creative destruction, but insisted that Europe needs to step out of its comfort zone when talking about the future. “Fear is not a shelter or a safe place,” he concluded.

The goals of the Green Deal should stay the same, but the economy competitiveness should be maintained as well, along with supporting startups and developing companies in Europe, said EU Commissioner for Startups, Research, and Innovation Ekaterina Zaharieva. Discussions about the Green Deal are decreasing in Brussels, creating the impression that the new European Commission is retreating from its ambitions, added Zaharieva, confirming this statement is not true. The focus is now on how to achieve the goals with a more pragmatic approach. "I believe this is the right approach, because common sense will dampen the voices of populists," Zaharieva commented. She stressed that the Green Deal’s objectives cannot be fulfilled without ensuring the sustainable competitiveness of the European economy. One of the main challenges remains the fragmentation of the European market. "We still haven’t completed the construction of the EU single market," Zaharieva said. Overcoming at least part of the fragmentation and promoting the creation of large-scale investment funds to retain innovative companies in Europe should be a priority over the next five years. The Bulgarian EU Commissioner expressed satisfaction with the May 28 presentation of a comprehensive startup strategy. This strategy aims to make Europe the best place to launch and grow an innovative business by focusing on improved access to financing, easier market entry, talent attraction and retention, simplified regulations, and access to infrastructure for innovators. "High technology and leadership in this field will be the number one priority for all governments worldwide. I can assure you that the European Commission, and I personally, are determined to do everything possible to help our innovators choose Europe," Zaharieva emphasized.

Digitalization of Industries and Services

Digitalization is one of key drivers of the green transition and sustainable economic development, said E-Government Minister Valentin Mundrov. In the context of accelerated technological progress and global challenges, the potential of information and communication technologies and their prudent application are key to successfully achieving the goals of the digital transition, Mundrov said. Mundrov emphasized that the Ministry of e-Government has a clear vision to build a secure and efficient infrastructure and to implement policies focused on citizens and businesses. This inevitably includes digitalization as a foundation for modernization and sustainability. “Digital transformation creates conditions for easier and faster interaction between the state and business, which is a main priority for the Ministry,” he noted. He added that the challenges are significant, society expects fast and accessible services, requiring the adoption of innovative solutions. In this direction, the Ministry is developing a comprehensive digital architecture for the state administration. Among specific initiatives, he mentioned the implementation of a unified model for requesting electronic services, automatic data exchange between institutions, operational interoperability, integrated architectural solutions, cloud infrastructure, and an electronic identification system. Mundrov said his Ministry is working on several key areas, including on creating digital infrastructure, facilitating data access, increasing transparency and accountability, as well as integration with the private sector through compatible platforms and standards that support automation and traceability.

Facilitating the internationalization of Bulgarian small and medium-sized businesses is the primary role of the Bulgarian Small and Medium Enterprise Promotion Agency (BSMEPA), Executive Director Boyko Takov said. Takov said the aim is for Bulgarian small and medium-sized enterprises (SMEs) to be well positioned on the global stage and to find new partners and clients. At the same time, the agency is launching two new projects related to digitalization. One is focused on Northern Bulgaria and envisages the creation of mobile offices, with the World Bank being a partner in this project. Another project relates to cross-border cooperation with Serbia, within which many SMEs will be supported. “Digitalization is a key factor in the competitiveness of enterprises,” Takov said. He noted that the agency is also actively working on the development of innovation. At present, BSMEPA manages the Eurostars programme under the Eureka initiative, and another innovation project is due to be launched soon.

Transforming Higher Education through Innovation and Scientific Research

Leading experts from the education and scientific sectors discussed the challenges facing education. 

Council of Rectors Chair Miglena Temelkova said that the biggest challenge for any educational institution is how to prepare students for jobs of the future that may not even exist in the next 10, 15, or 20 years. She stressed that today’s students must be educated in an interdisciplinary manner, rather than only as specialists in a single field.

Bulgarian Academy of Sciences President Evelina Slavcheva highlighted the importance of fundamental knowledge and scientific research. “No matter how inspiring innovations are, they require a foundation - fundamental knowledge and fundamental scientific research,” she said. Slavcheva noted that new technologies often capture public attention, but behind them lie long-term and less visible scientific studies that demand time, silence, and in-depth work.

Former innovation minister Milena Stoycheva (2023-2024) emphasized the need for a responsible approach to new technologies. “Artificial intelligence (AI) is simply the new, next wave of high technology. Just like the internet was before, now it is AI,” she said. Stoycheva called for a long-term vision in the field of AI and stressed the importance of considering the impact of this technology over the next one or two decades.

Academic Director of Master’s Programmes at the American University in Bulgaria, Momtchil Karpouzanov, expressed concerns about the use of AI in education. “I am personally very critical of the overly liberal approach that many of our students might take. With every wave of enthusiasm, critical thinking becomes even more essential,” he said.

Competitiveness, Economic Development and Effective Public-Private Partnerships as a Benchmark for the CEE region

Bulgaria and Greece are good trading partners in the Balkans and in the last year Bulgaria has turned out to be the fourth most important destination for Greece's exports., Panagiotis Theodorikakos, Minister of Development of Greece, said.

According to Theodorikakos, the relations between Bulgaria and Greece are friendly and this is an economic-political process that is needed. “We should share our common desires for the prosperity of the whole region,” he noted. 

Theodorikakos focused on the Greek economy, noting that it is currently growing at a rate 2% higher than the euro area average. “Unemployment is the lowest in decades, taxes have been cut and throughout this period we have continued to overcome the consequences of the crisis and Greece as a whole is reducing its public debt,” he said.

According to him, the development of humanity is currently in a period of instability around the world especially in regions that are close to Bulgaria and Greece. 

Giorgos Kremlis, Ambassador of the European Public Law Organisation to Bulgaria, said that the Green Transition Forum is growing year by year in terms of its scope and importance and in that it is attracting more and more high-profile guests and speakers. “It is a multidisciplinary forum that discusses the challenges we face in the region, in our neighbouring countries. It provides knowledge, expertise, best practices and these are shared among all 30 countries whose representatives have participated in the conference so far, he said. 

He said countries should do more to develop green energy. 

Former Prime Minister Sergei Stanishev also joined the discussion, saying that cooperation should be strengthened by the countries of the region. “It is clear that if we want to avoid being on the periphery in this dramatically changing world, we need to cooperate, find common points and have a strong voice in Brussels,” Stanishev said. "If we want Europe to be successful, our voice has to be taken into account in the policies that are changing at the moment, otherwise we will be isolated,” he added.