Many Promises and Corruption Accusation Mark First Economic Elections Debate

At the first economic elections debate made especially for the Bulgarian business, companies were promised low corporate tax, less bureaucracy, more efficient state administration, less intervention in the development of business on behalf of the State, faster and successful privatization.

The culmination of the event was the direct corruption accusation that Vladimir Karolev received from For Bulgaria Coalition's Georgy Kadiyev. "I wish to discuss nothing with a person who takes part in corruption schemes," stated Kadiyev in front of more than 100 representatives of business and the media. "If you don't apologize immediately, I will take you to court," was Karolev's reply. At the end of the day, all emotions were put down by Moderator Petar Pountchev, who apologized to Karolev on behalf of all participants in the debate.

Part in the event entitled ‘Politics in the eve of 2007 - politics of business' took Roumen Ovcharov and Georgy Kadiyev of For Bulgaria Coalition, Martin Dimitrov of United Democratic Forces Coalition, Dimiter Stefanov of the Bulgarian People's Union, Velichko Klingov of the New Time party, Emil Hirsev of the Federation of Free Business. Vladimir Karolev took the place of SSNM's Milen Velchev, who failed to reach Sofia on time for the event due to the heavy floods in Northern Bulgaria. No participant was appointed by the Movement for Rights and Freedoms.

"NDSV is just finishing a term that was very successful," said Vladimir Karolev. "If you check SSNM's programme from 2001, you will see that only 5 out of 83 promises that were made back then have not been fulfilled at all. If I must fit our programme in just one word, that would be "continuity". We want to stimulate saving and investments, instead of reducing VAT. Introducing a flat tax, however, is imperative," said Karolev.

Introducing differentiated VAT for specific goods is much needed, said Georgy Kadiyev from the leftist For Bulgaria Coalition. Taking a question by Free and Democratic Bulgaria Chairman Dimi Panitsa on whether these "goods" also include culture among them, Kadiyev said tax relief for that have not been considered, but rather for health-care, education and other immediate and vital needs.

"If we introduce differentiated VAT, all export to Bulgaria will take the form of "textbooks", was UDF Martin Dimitrov's comment. Vladimir Karolev called the idea "wrong, unnecessary and harmful".

Leftists Roumen Ovcharov and Georgi Kadiyev lapsed in their statements about the reduction of VAT. According to Ovcharov, who left the debate for a short while and was replaced by Kadiyev, For Bulgaria Coalition does not consider to launch radical tax changes, ones in the size of VAT included. Kadiyev objected that quoting the Party's economic programme which states that VAT is to drop by 2% by the end of the 4-year term.

"UDF's taxation strategy is not revolutionary. It is absolutely plausible should there be will to put it into action," said Martin Dimitrov fighting back a commentary from the media. "It is totally possible to reach economic growth of 40-45% and income growth of 50%. If all taxes are reduced by 5% and the number of taxes goes down as well, and if corporate tax gradually melts down to 0% and the State assumes responsibility for half of the social insurance load, that would save up some 2 bln. BGN to the benefit of both citizens and business."

Taking a question by AstraZeneca's Dr. Krassimira Chemishanska if parties plan to increase the GDP percentage allotted to healthcare, which currently stands at 4%, all parties were unanimous that sources allocated to that sector should increase, but competition between players needs to be created and the monopoly of the National Health Fund should be brought down.

Business also asked questions related to the measures parties mean to take to fight corruption and eliminate grey economy, their strategies for stimulating the preparation of Bulgarian companies for functioning in the EU market, their policies on the Bulgarian capital market and the Bulgarian stock exchange, the intervention of the State in the work of NGOs, and the quality of information service that business receives from the Administration.