Bulgarian Telegraph Agency (BTA), 97-01-04

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From: Embassy of Bulgaria <bulgaria@access1.digex.net>

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

4 January, 1997

CONTENTS

[01] OUTGOING GOVERNMENT FINALIZES 1997 DRAFT BUDGET

[02] OUTGOING CABINET APPROVES ENTERPRISES FOR ACCELERATED PRIVATIZATION

[03] PARLIAMENT DEBATES OPPOSITION'S DRAFT DECLARATION ON NATIONAL SALVATION

[04] UNITED OPPOSITION STAGES PROTEST RALLY IN SOFIA

[05] OVERPOLITICIZATION A MAJOR PROBLEM FOR BULGARIA, SAYS SIMEON II

[01] OUTGOING GOVERNMENT FINALIZES 1997 DRAFT BUDGET

The key indicators in the macroeconomic framework are set as targets which can be met under definite conditions. The framework has been worked out for conditions of a currency board and an exchange rate of 500 leva/US dollar (at present the dollar exchanges for 550 leva on the cash market, and the central bank's rate for January 3 is 495.74 leva). Annual inflation is to cumulate to 72 per cent in 1997 (the National Statistical Institute put January - November 1996 inflation at 223.6 per cent). The gross domestic product is to reach 4,585 million leva. The projected budget deficit is 308, 300 million leva, and budget revenues 1,358,000 million leva. Tax revenue is to account for 26 per cent of GDP. A total of 51,633.2 million leva are budgeted for education and 45,264 million leva for health care. The draft suggests 58,578 job losses in the state-financed sphere, with cuts starting from March 1, 1997.

At an extraordinary congress of the ruling BSP on December 21 - 23, 1996, Prime Minister Videnov declared his Cabinet's resignation, which was tendered to Parliament several days later. It was accepted by the National Assembly at an extraordinary sitting on December 28. The Videnov Cabinet will remain in office until the formation of a new government. The President is currently holding consultations with the political forces in Parliament on the formation of a new cabinet.

[02] OUTGOING CABINET APPROVES ENTERPRISES FOR ACCELERATED PRIVATIZATION

[03] PARLIAMENT DEBATES OPPOSITION'S DRAFT DECLARATION ON NATIONAL SALVATION

The five hours of discussion were broadcast live on radio and television. MPs rejected proposals for extending the meeting and since the parliamentary groups had not used their allocated time, no vote was held.

"We have come up with a declaration on the national salvation of Bulgaria, a solution of the country's most serious problems," UDF leader Ivan Kostov said, motivating the draft declaration. "We are not asking you to relinquish power and your responsibilities," he emphasized and said that the opposition is ready to take on responsibility in the appointment of a new BNB governing board, in the drafting of a programme for structural reform and for the laws required for introduction of a currency board. "A caretaker government, appointed by president-elect Peter Stoyanov (who was nominated by the UtdDF) would have much better chances to begin the introduction of the currency board supported by much greater public confidence," Ivan Kostov also said. He described as wrong the presumption of the ruling Left that early parliamentary elections at the current moment would result in political destabilization of the country.

The opposition MPs stressed that the draft declaration is a stretched hand towards the Left to lead the country out of the crisis. The MPs of the Left see today's debates as a beginning of a discussion among the parliamentary and extra-parliamentary political forces on the need of consensus on the most pressing problems of Bulgarian society, the new BSP leader Georgi Purvanov and Left Floor Leader Krassimir Premyanov said. According to Purvanov, a declaration on national salvation with only three or four points is not convincing enough. "It would be better to draft a programme on salvation through consensus," he added. In his view the key to success of the currency board involves stability of the main institutions and mainly Parliament and participation of all political and public forces, including the opposition ones.

"We already stated our intentions to enlarge the framework of the ruling coalition and enlist broader public and political support," Purvanov said. On December 28, 1996 the National Assembly accepted the resignation of the Government, announced by Prime Minister Videnov six days earlier. Political consultations are being held at the moment and a new Cabinet is expected by mid-January. "The progress of the consultations so far shows that we can assemble a more representative, efficient and strong government and meet the expectations of the Bulgarians and the international community," said Purvanov.

The new BSP leader assured opposition MPs that as of today, with the beginning of the new political year, the opposition will see a considerably changed opponent, one more open to dialogue and consensus. Purvanov said that a new priority of the BSP policy is governing with maximum consensus. However, this change should not be interpreted as an expression of weakness and readiness for unprincipled compromises, he added.

Later in the day the Parliament's press office said that Parliamentary Chairman Blagovest Sendov called an extraordinary parliamentary sitting on January 10, 1997. The issue on the agenda of the sitting will be discussion of the opposition proposed declaration on national salvation.

[04] UNITED OPPOSITION STAGES PROTEST RALLY IN SOFIA

The draft declaration was moved to the National Assembly on December 19, 1996 by the UtdDF (the opposition UDF, the Popular Union and the ethnic Turks Movement for Rights and Freedoms). The UtdDF declaration pledges for immediate dissolution of the National Assembly and for early parliamentary elections. Responding to the declaration on the same day the ruling Left said it has no intentions of relinquishing the power.

The rally was supported by the powerful trade union amalgamations the Confederation of Independent Trade Unions in Bulgaria (CITUB), the Podkrepa Confederation of Labour and the Promiana [Change] Alliance. "Communists ruined Bulgaria," "A new Socialist government will bury Bulgaria", "Elections, elections!", are samples of slogans raised at the rally.

The protest march finished at the BSP headquarters where this party's leadership was having a meeting. The protestors hurled stones and eggs at the building, smashed three windows and broke through the makeshift railings. There was over 100 police guard at the building. A stone wounded a guard in the head. Three elderly BSP adherents were asked to go back to the building as they were allegedly teasing the crowd. Noone has been detained, head of the Sofia Directorate of the Interior Colonel Krassimir Petrov said.

"We are concerned by the fact that today, when we are responding to UtdDF's suggestion for parliamentary debate, when we are taking serious efforts for the stabilization of the society and of the political situation, street protests are being organized, protests that would have consequences difficult to predict," BSP leader Georgi Purvanov said in connection with the protest actions. "We shall not give in to the street pressure, not because we stubbornly want to keep the power, but because we do not see a real alternative to preserve the stability of the institutions," Purvanov added.

[05] OVERPOLITICIZATION A MAJOR PROBLEM FOR BULGARIA, SAYS SIMEON II

Simeon II says in the interview that had he stayed in the country 50 years ago, the situation now would have been different. He also believes it would have been different if things had progressed smoothly after 1990. "The constructive wish to make things in the country better as soon as possible is stronger than any other motives. I often hear people talking about reclaiming the throne. I wonder why they think I have an ambition involving the procedure of sitting on a throne. They are wrong to think I have such petty and deplorable ambitions," the interviewee says. Asked about what powers he is ready to undertake if he ever returns to Bulgaria, Simeon II says a constitutional or parliamentary monarchy defines clearly the powers of the monarch. "The monarch, however, has more space to act that depends on his personality, and it is much more important than any special powers," he says.

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