News from Bulgaria / Dec 6, 95

From: bulgaria@access1.digex.net (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

CONTENTS

[01] PRESIDENT ZHELEV'S OFFICIAL VISIT TO ITALY

Rome, December 5 (BTA) - Bulgarian President Zhelyu Zhelev started the second day of his official visit to Italy by placing a wreath at a monument in Piazza di Venezia.

The official talks between President Zhelev and Italian President Oscar Luigi Scalfaro began this evening. Bilateral relations, the eastward expansion of EU and NATO, the East- West transport corridor and the Balkans after the end of the Yugocrisis are the expected topics of discussion between the two presidents. The Italian President gave an official dinner in honour of the Bulgarian Head of State.

President Zhelev also met with the Mayor of Rome, Francesco Routelli. The group of Bulgarian businessmen accompanying President Zhelev met with the leadership of the Confederation of Italian Industrialists and representatives of the Italian business circles. Tomorrow the visit of the Bulgarian President proceeds with a tour in Southern Italy.

[02] MEETING OF THE GOVERNMENT COMMITTEE ON EUROPEAN INTERGATION

The participants discussed Bulgaria's position on the enforcement of the military, civilian and political aspects of the peace accord, humanitarian issues, the repatriation of refugees and the economic reconstruction of the region.

GCEI members discussed Bulgarian-Yugoslavian relations after the adoption of the UN Security Council resolutions for the phased lifting of the arms embargo from the former Yugoslavian republics and the suspension of the trade and economic sanctions against the Federal Republic of Yugoslavia and Bulgaria's participation in initiatives of NATO and the Organization for Security and Cooperation in Europe (OSCE) about the implementation of the peace accord. Other issues highlighted by the meeting were Bulgaria's cooperation with the EU Monitor Mission along the border between Bulgaria and former Yugoslavia, the Mission of the Western European Union along the Danube and the EU/OSCE Sanctions Assistance Mission.

The Dayton peace agreement provides the setting up of peace implementation forces under a mandate of the UN Security Council and under the command of NATO. It was decided at the meeting that Bulgaria should send a letter to NATO voicing the country's readiness to assist the successful fulfilment of the task of the peace implementation forces.

[03] FOREIGN MINISTER PIRINSKI LEAVES ON EUROPEAN TOUR

Sofia, December 5 (BTA) - Bulgarian Foreign Minister Georgi Pirinski left for Brussels today to attend the meeting of the North Atlantic Cooperation Council. This will be the first of a series of meetings to be attended by the Bulgarian foreign minister - of the Organization for Security and Cooperation in Europe (OSCE) in Budapest, the London and Paris conferences and the meeting of the EU in Madrid.

Before his departure Pirinski said that today's session of the governmental committee on European integration approved his stand and mandate. Bulgaria is ready to actively assist the implementation of the agreements for peace in Bosnia and Hercegovina, the recovery of the region and its lasting stabilization. "We hope that the agreements to be finalized and formalized in Paris will be translated into practice, the Bulgarian foreign minister said. He once again confirmed Bulgaria's wish to take an active part in the postwar reconstruction and development of the region.

Dwelling on the concrete Bulgarian proposals at the OSCE session in Budapest in the wake of the OSCE infrastructure seminar in Sofia, Pirinski said that he will launch the idea for establishing an infrastructure centre in Bulgaria for exchanging information and contacts on all directions of trans-European infrastructure of interest to the countries of Central and Southeastern Europe.

Within the framework of his European tour Pirinski will pay an official visit to Britain. Pirinski said that in London he will sign an agreement on reciprocal investment promotion and protection. Pirinski also said that over the past few months British firms have been showing growing interest in long term cooperation with Bulgarian partners.

Bulgaria's chief diplomat said that in his talks with his British counterpart he will seek Britain's support for Bulgaria's bid for full EU membership and all issues of interest to Bulgaria, including the visa black list, access to markets and activation of bilateral contacts.

Pirinski will also meet the Vice Governor of the Bank of England and the President of the European Bank for Reconstruction and Development. Pirinski stressed the significance of Bulgaria's forthcoming hosting of the annual session of the EBRD scheduled to be held next April in Sofia.

The Monday sitting of the cabinet that lasted well into the night adopted Bulgaria's principles and position for the negotiations with the World Bank, the International Monetary Fund and other international financial institutions. The cabinet decided that the talks with the IMF mission starting this week, cover the macroeconomic parameters for the development of the economy and the 1996 draft budget, the programmes for voucher and cash privatization, the programme for utilization of foreign investment, measures for improving the financial discipline and solving the problems in the social sphere. The problems facing the banking system will also be on the agenda, government spokesman Nikola Baltov told journalists.

The cabinet mandated a Bulgarian delegation to the conference of the UN Convention of Children's Rights in New York on December 12. Bulgarian Minister Plenipotentiary and Deputy Permanent Representative to the UN Raiko Raichev was authorized to vote for increasing the members of the UN committee on children's rights from 10 to 18 on the basis of balanced distribution, to include experts on the implementation of the Convention from Asian, East European, Latin American, West European and other countries.

The Monday sitting further approved an agreement for visa- free travel of citizens from and to Bulgaria and the Czech Republic. The agreement will become effective 30 days after the exchange of ratification notes.

The government reviewed a request by the Sofia-based US Embassy for six F-16s of the US Air Forces to overfly Bulgaria on December 11. It decided to propose to Parliament to okay the flight specifying it is necessitated by the redeployment of the Incirlik base in Turkey and the participation of the aircraft in operations codenamed Provide Hope and Provide Comfort.

[04] SOCIALISTS HAPPY WITH 1996 BUDGET BILL

Sofia, December 5 (BTA) - For the first time in the five years of democratic rule in Bulgaria, the country will be ready with its next year's budget bill before it sees the new year in, a news conference of the ruling Bulgarian Socialist Country (BSP) was told today. The Bill envisages monthly wages of doctors and teachers three points higher than the salaries of other state- financed officials, Deputy Chairman of BSP's Supreme Council and Deputy Prime Minister Doncho Konaktchiev said.

Working wages in the state-financed sector will be 27 up from 1995 and the 1996's inflation rates are projected at 20 per cent. According to Mr Konakthiev, in 1996 the budget allocations for the municipalities will still be insufficient.

The macroframe of the 1996 Budget Bill provides a good foundation for negotiations with the international financial institutions towards new agreements, Deputy PM Doncho Konaktchiev said.

He confirmed that the figures of the 1995 budget deficit will have to be revised. Mr Konakcthiev specified that the budget deficit will reach some 52,000 million 53,000 million leva. The 1995 Budget Act envisages a deficit of 48,700 million leva.

In the afternoon at a joint plenum the BSP's top leadership and parliamentary group discussed the Government's economic, financial and social policy in 1996. The main reports were read by Prime Minister Zhan Videnov and the Chairman of the Parliamentary Committee on Social Affairs Nikola Koychev.

Among the key economic and social tasks in 1996 Zhan Videnov singled out the implementation of the voucher privatization, stabilization of the economic recovery, the achievement of 20 per cent inflation rate and the overall anti- inflationary policy. "This is a budget of the transition," Videnov said, referring to the 1996 Budget Bill. "This is a matter of policy, which has been developing from conservative restriction to flexible and moderate expansion," the Prime Minister said. He emphasized that it is significant for the country to sign agreements with the international financial institutions.

The leader of the opposition Union of Democratic Forces (UDF) Ivan Kostov, former finance minister, lashed today severe criticism at the planned by the Government increase by almost one-fifth of the budget deficit. "The budget deficit has never been increased so dramatically over the past few years; the action was made in a way which is absolutely unacceptable," Kostov told reporters after a meeting of the union's top leadership.

"This is the end of the Government's financial policy. The Government could not implement the 1995 State Budget Act," Kostov said. He finds the reason in [the Government's] "illegal actions in taking over the loans of Mineralbank and Economic Bank." According to Mr Kostov, the UDF does not challenge the very act of raising the budget deficit, but the way it has been done, together with the adoption of the next year's Budget Bill. "Since 1990 no government has allowed itself to increase the budget deficit so significantly. We do not oppose the increase of the deficit, but we consider this a collapse of the Government's financial policy," Kostov said. He predicted a new inflation wave in the first months of 1996.

[05] BILLS TO STIFFEN TAX DISCIPLINE

Sofia, December 5 (BTA) - The cabinet approved, and will introduce at Parliament, two bills seeking to facilitate the tax collection and tighten the tax discipline. At its regular sitting on Monday the cabinet adopted draft amendments to the Tax Administration Act and the Taxation Procedures Act.

The amendments to the Tax Administration Act expand the possibilities for preventing tax evasion. They envisage the setting up of a service for preventing tax-related offences to operate with the Central Directorate of the Tax Administration. The draft amendments further regulate the measures on the control on and identifying of tax evasion or withholding information relevant to taxation. The bill of amendments regulates the interaction between the tax administration and the respective Interior Ministry bodies. According to Finance Minister Dimiter Kostov, the amendments provide conditions for preventive control which eliminates the need for new laws on tax or financial police.

The amendments to the Taxation Procedures Act pertain to the tax registration and the procedures for the issue, challenging and execution of orders of the tax administration.

The cabinet also approved draft amendments to the National Accountancy Act. They introduce provisions eliminating problems resulting from the implementation of statutory acts adopted after the April 1991 entry into effect of the National Accountancy Act. The sponsors of the bill of amendments say they will help provide more systematized and full information and facilitate internal tax control.

[06] BUSINESS PRESS

Sofia, December 5 (BTA) - The Aqua Fish company of Kurdjali, Southern Bulgaria, started exporting carps for Serbia, writes "24 Chassa". The deal was cleared by the UN as the fish will be transported through territories where multinational forces are deployed.

Sevko of Sevlievo, Northern Bulgaria, received the 1995 gold award for commercial image of the Madrid-based World Leaders' Club. Sevko is the only footwear producer awarded this year.

Deutsche Bank offers DM 1,000 million for 25% of the Bulgarian Telecommunications Company (BTC), says "24 Chassa". BTC chief Mihail Danov and the chief of the Committee of Posts and Telecommunications, Lyubomir Kolarov left for Germany yesterday to negotiate the supply of AEG equipment for a new telephone exchange in Sofia.

The Knauf German company in interested in purchasing Gipsfazer of Vidin, on the Danube. Gipsfazer, however, is on the mass privatization list and 25% of its share will be offered for denationalization against vouchers.

[07] FORUM "PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT

Sofia, December 5 (BTA) - The establishment of a National Forum "Partnerhip for Sustainable Development" was discussed today at a conference by representatives of the Prince of Wales Business Leaders Forum, the Bulgarian Environment Ministry and representatives of the business circles. The national forum will probably be formally set up in May, 1996, but today it was established in practice, Ed Chmara, Director Central and Eastern Europe of the Prince of Wales Business Leaders Forum, told a news briefing after the meeting.

The Business Leaders Forum was set up in 1990 at the personal initiative of the Prince of Wales as an international educational and charity forum. The organisation has set itself the objective to seek settlement to social and environmental problems, using the huge potentials of the business.

The Forum launched its programme in Bulgaria 18 months ago with several workshops on environmental topics, Mrs Ilieva, representative of the Environment Ministry told the news briefing. She also said that the country has already built a local network of groups of supporters, who had also raised the idea for the establishment of the national forum. The attending representatives of the business circles presented some environmental projects, which they have been financing.

[08] MRF DEPUTIES MEET AMBASSADORS OF E.U. STATES

Sofia, December 5 (BTA) - The ethnic Turks' Movement for Rights and Freedoms (MRF) will familiarize the Committee on Human Rights and Ethnic Affairs in the Parliamentary Assembly of the Council of Europe and the Socialist International with the situation in Kurdjali (Southern Bulgaria, an area inhabited by compact masses of ethnic Turks), the party leadership said today after its meeting with ambassadors of some western states in Sofia.

MRF's candidate won the mayoral elections in Kurdjali a month ago, but their victory was challenged by the ruling Bulgarian Socialist Party and the United Party of Labour (UPL). The BSP and the UPL claimed that the election procedure was violated. The issue has yet to be settled by the legal authorities.

The meeting between MRF MPs and their winning candidate at the mayoral elections in Kurdjali Rasim Moussa, was attended by diplomats from nine countries, although all EU diplomatic missions in Sofia had been invited. The meeting was attended by the Ambassador of Turkey Mehmet Ali Irtemcelik, of the U.S. William Montgomery, of Denmark Preben Steen Seiersen, of Belgium Koenraad Rouvroy, the charge d'affaires of Germany and Italy. Spain and Sweden were represented by embassy secretaries. Also at the meeting were the Charge d'affaires of the Greek Embassy and the deputy of EU's Ambassador in Bulgaria Thomas O'Sullivan. The meeting was not open for reporters.

The MPs of the MRF voiced concern over the fact that no municipal administration has been formed in Kurdjali yet, Deputy Chairman of the MRF Yunal Lyutfi told a news conference after the meeting. The parliamentarians said they felt awkward about having to report to the EU diplomats about violations in the elections at the same time when the National Assembly is voting a declaration which voices Bulgaria's willingness to become member of the EU, MRF representatives told reporters