Ако харесвате нашата 
We regard the formulation of an economic policy adequate to the challenges of time as a strategic objective.
Our policy correlates specific economic outcomes with the quality of life of Bulgarian citizens. Good quality of life is conducive to better economic outcomes and economic competitiveness, which in turn creates brighter prospects for our nation as a whole.
The main policy goal of the LEADER Party is to create the best conditions for the development of the Bulgarian economy in European and global conditions.
We are in favour of:
• A comprehensive vision of the Bulgarian economy, of its industrial and technological development;
• A policy of economic patriotism through creating conditions for promotion of Bulgarian business in a competitive market environment;
• An aggressive and export-oriented Bulgarian economy;
• Compliance with the European standards with a view to rapid penetration of the European market by Bulgarian goods while creating conditions for mobile integration in all sectors of the economy;
• Creation of strategies for national commitment of the economy and balances at a regional level.
We believe that the main challenges and tasks for this country’s development,
for promoting growth and employment, are:
• Increasing manufacturing effectiveness and promoting innovation;
• Streamlining the administrative capacity by devoting special attention to the main regulatory functions of the government and the judicial system;
• Implementing strict fiscal policy, improving the quality of public spending and the incomes policy, by pegging wage growth to improved labour productivity;
• Improving the current business environment by reducing bureaucratic burdens and streamlining administrative procedures;
• Increasing employment and improving the quality of the workforce, through active labour market measures and educational reforms;
• Creating conditions for strong and transparent competition in the development of infrastructure projects of pan-European importance;
• Developing an integrated research and development policy, geared to the concrete key priorities of the nation and its business sector;
• Implementing a lifelong learning strategy and upgrading the qualifications of employees.
For attainment of the goals identified in this economic project, we in the LEADER Party will pursue the following policies:
Macroeconomic policy
We regard as weaknesses: the lack of clear medium and long-term priorities, the unjustified waste of national resources, and the practice of subsidizing unreformed and unrestructured sectors and branches of the economy.
In our view, the present situation of a substantial current account deficit, compounded by a trend towards its further increase, endangers the country’s economic stability. Moreover, despite a sharp decrease in direct taxation, the share of reallocation through state regulation remains disproportionately large.
We therefore propose curbing the levels of reallocation of resources through the state budget. In our estimate, government spending must be reduced sustainably to a level of under 40% of GDP, with a tendency to further lowering to 35% in the medium term.
We favour abandonment of the policy of planning understated budget revenues and, on the basis of these, forming budget surpluses that are then spent in a non-transparent manner by executive decree.
In this context, we favour the formation and implementation of a balanced state budget, one that corresponds to the actual political and economic situation in Bulgaria, based upon clear goals and priorities, without significant budget surpluses to drain fresh money out of the economic entities. In case a budget surplus does get formed, it must be spent only by National Assembly resolution.
T We in the LEADER Party favour implementing a strict fiscal policy and balanced reallocation of resources from the public to the private sector, coupled with immediate reforms in heath care, social security and education. In implementing the macroeconomic policy that we propose, we favour strict adherence to the Maastricht criteria.
Monetary policy
We favour adherence to the common European Exchange Rate Mechanism, accession to the European Monetary Union and introduction of the euro as legal tender in the Republic of Bulgaria.
In the area of monetary policy, we favour continuance of the Currency Board Arrangement in the process of preparation for Bulgaria’s accession to the European Monetary Union; keeping the independence of the Central Bank as a source of stability promoting non-inflationary economic growth, through specific monetary measures, and, at the same time, a more active position of the Central Bank in protecting Bulgarian national capital and promoting Bulgarian business.
For the purpose of raising the competitiveness and the production capacity, and the rate of absorption of funds provided by the EU, we favour the creation of a Capital Investment Fund with the participation of Bulgarian banks, in partnership with international institutions.
In addition to all of the above, and for the purpose of furnishing additional guarantees on the debt instruments used and the commitments undertaken, we favour the establishment of a National Guarantee Fund with the active involvement of the Bulgarian banking and non-banking business and in partnership with international organizations.
Public finances
In developing a long-term policy of public finance stability, it is particularly important to take into account the negative demographic trends in Bulgaria and their impact on the state pension system. In this context, we favour reducing the social insurance burden and a reform of the retirement insurance system, by increasing the role of the private sector in it. We expect this to produce the following positive effects: reducing the role of the state, curbing the influence of the ‘grey’ economy, and thence, increasing the overall revenue in the state budget.
From the standpoint of the long-term sustainability of public finances, it is exceptionally important to develop a strategy for creating a reformed, financially stable and economically effective health care system, ensuring the availability of high-quality health services to the public, with the active involvement of private business.
We favour streamlining government spending by means of developing a strategy for immediate reform in education and health care, one that would put an end to the practice of uncontrolled, inefficient spending of resources. We believe that, without concrete measures and adequate sectoral policies, no genuine budgetary reform is possible that would lead to accelerated economic growth.
Policy of improving the business environment and promoting the development of the private sector.
We believe that Bulgarian private capital, as the engine of development, must be a corrective factor and an active partner of the State in working out a strategy for economic development of the country.
It is necessary to improve the regulations and the procedures for their implementation so as to streamline regulatory regimes, through:
• minimizing the administrative obstacles to business;
• ongoing privatization, based upon a clear-cut government strategy;
• minimizing licensing procedures;
• optimizing the procedures for coercive enforcement of contractual obligations.
We propose the establishment of a clear regulatory framework for interaction between government and business. Only in this way can private business turn from a subject of regulation into an active participant in the process of improvement of the business environment. To that end, we propose the use of alternative tools for the implementation of the relevant policies such as: performance- and results-based or process-based regulations; codes of practice based on the active involvement of the business sector; consumer training manuals; free initiatives and promotion of entrepreneurship and skills through participation in European education programs.
To us, the public-private partnership is one of the most up-to-date and effective forms of interaction between the State and the business community in modern economies. We favour the adoption of a Public-Private Partnership Act that would clearly regulate possibilities for interaction between public and corporate finance, for the purpose of achieving economic growth at a local and regional level.
Policy of promoting small and medium-sized business
Small and medium-sized enterprises are a significant factor of the promotion of entrepreneurship, job creation and economic growth.
We favour improving the access of small and medium-sized enterprises to funding through EU programmes. In EU-funded projects, cofinancing should be recognized as expenditure for beneficiaries. Small and medium-sized businesses should be oriented to joint projects with municipalities based upon public-private partnership schemes.
Policy of absorption of European programmes funds
The total amount of funds that Bulgaria can receive from the EU Operational Programmes for the 2007-2013 period is approximately EUR 7,000 million. The absorption of such funds is one of the major factors to be considered in assessing the effectiveness of government policy. The effect of such funds for the country will be in the infusion of fresh financial resources in the Bulgarian economy and its increased competitiveness, as well as higher incomes and living standards of the population.
The existing practice, however, bears clear evidence of an inability to absorb the funds provided by the EU, lack of administrative capacity and existence of corrupt practices.
As a result of all that, from a net recipient of funds Bulgaria is turning into a net payer, a country that indirectly finances the economies of the remaining EU Member States.
Therefore, we in the LEADER Party believe in the need to optimize the administrative capacity and to develop concrete measures for speeding up the absorption of EU funds.
It is inadmissible to solely rely on European supervision and control. What Bulgaria needs is a clear statutory framework and transparency of its institutions responsible for the management of EU funds. Disbursement control must involve the legislature and the judiciary.
Tax and social security policy
The LEADER Party favours the development of a clear and concrete taxation policy. We oppose the unprincipled, ad hoc annual changes in tax legislation that stand in the way of developing an adequate business strategy. Such insecurity and unpredictability largely cancel out the effect of the otherwise low tax rates in Bulgaria. It is necessary to identify priorities and to develop a national long-term taxation strategy.
We favour simplifying tax legislation. We favour a clear and stable taxation environment. The present situation of insecurity for investors and the rampant administrative arbitrariness are inadmissible. It is necessary to simplify and improve as much as possible the regulatory framework. An adequate and effective link must be provided between the business community and the control authorities, aimed at the correct implementation of the legal provisions.
We favour reducing the social insurance burden and simplifying the social insurance legislation, and a review of the model of the existing social insurance system.
We believe that such a reform would help bring to light the contributory income and put an end to the vicious practice of paying wages and social insurance contributions on the minimum contributory-income thresholds. Simplifying administration would help increase the contributions compliance rate while eliminating the chronic substantial deficit of the social security system. Lowering the rate of contributions would help increase the base and sustainably reverse the current tendency of losses.
It is necessary to elaborate legal possibilities for corporation tax exemption of business entities reinvesting their profit, subject to certain conditions and criteria in priority spheres and projects.
We propose measures for abolishing the current dividend tax imposed on resident natural persons and non-resident persons of the EU, and for lowering the Value Added Tax rate.
We propose simplifying the procedures for application of the convention on the avoidance of dual taxation.
Policy of good management of the tax administration
The tax administration should place itself at the service of taxpayers and encourage observance of the laws and voluntarily payment of taxes. What is necessary is strengthening the administrative capacity and a thorough change of the philosophy, mentality and modus operandi of the control authorities.
We favour:
• Formulating clear rules and procedures for the operation of the National Revenue Agency;
• Streamlining the tax administration;
• Adopting a new approach to implementing follow-up tax control, based upon a comprehensive analysis and study of the particular business with its specifics;
• Introducing a statutory time limit for giving a mandatory reply to all queries by legal persons and private individuals, as well as the principle of ‘tacit consent’ in administrative procedures and proceedings.
Policy of promoting organizational and technological innovation
Bulgaria needs a new kind of economy, one based on knowledge and innovation.
We believe that the involvement of the State in managing innovation processes should seek to create conditions and develop mechanisms for investment in scientific research and development. We propose the following reforms in the field of innovation:
• Increasing the share of competitive financing of research and development;
• Promoting public-private partnership in research and development;
• A review of the role of the Bulgarian Academy of Sciences;
• Creating a system of assessing research and development policies;
• Stepping up the allocation of funds for research and development in the industrial sphere;
• Promoting university-based applied research.
We favour the provision of tax incentives to companies that have implemented quality management systems or have invested in innovation projects.
Energy policy
For us, the underlying principles of Bulgaria’s national energy policy should be: independence, sustainable development, and competitiveness.
The primary function of the state energy policy should be the provision of a legislative framework assuring the equal treatment and competition-based development of all types of energy production.
We believe that the State should create conditions for development of the energy sector on the basis of local raw materials and resources, which would provide security to our energy system while reducing our energy dependence.
We favour providing conditions for stability and independence in the work of the state regulatory and control authorities in the energy sector, which would help build the confidence of the EU institutions in the management of the energy sector in Bulgaria.
In our view, the issue with the restart of Units 3 and 4 of the Kozloduy NPP is not a technical one, since everyone acknowledge their technical safety. It is an issue of lack of trust by Europe in their management, on account of the practice of replacing the managing board of the plant and the leadership of the Nuclear Regulatory Agency with each change of government.
We favour providing conditions for an equal, and in certain cases, even preferential participation of Bulgarian companies in the privatization and management of the energy operators.
We believe that the State must create prerequisites for pooling the capacities of pure and applied science and the business sector for the purpose of exploration, development and exploitation of new energy sources in Bulgaria. In addition, we believe that favourable opportunities exist for pooling the resources and capacities of science, higher schools and the business community for bringing up a new generation of personnel needed for the management and development of the energy sector.
Energy saving is an integral part of energy policy.
Transport
The transport system is a major factor of sustainable economic growth and the cultural development of this country. The goal of transport policy is the creation of a proper infrastructure and integration of the country’s territory, as well as of world-class transport communications.
We in the LEADER Party favour developing a long-term policy of the State for all modes of transport, along with development priorities, transparent concession-award conditions, privatization of part of the transport operations and making use of the opportunities of public-private partnership.
We favour optimum utilization of the funds made available by the European Union, for introduction of modern, innovative systems of transport safety management and control, of new information and communication systems, and of technologies for production and use of biofuels.
Tourism
Our strategy for tourism development aims to make the Bulgarian tourism industry highly competitive on a world scale. What Bulgaria needs is a clearly identified state agency to manage and coordinate the tourism industry with the government policies in environmental protection, health care, transport, culture and other related sectors.
The existence of a suitable government strategy for long-term tourism development is of key importance for Bulgaria remaining a preferred European and world tourist destination.
Agrarian policy
Bulgarian agriculture has so far failed to realize its potential. Our strategic goal is the development of a modern, competitive agriculture, in accordance with the Common Agricultural Policy of the European Union.
The worldwide trend of a steady increase in the prices of agricultural products, as well as the limited production capacities and the anticipated direct farm subsidies under EU programmes provide incentives to farming and the export of agricultural produce. This trend must be supported by a suitable policy.
We believe that modernization and mechanization are fundamental to the future development of Bulgarian agriculture. The introduction of new machinery and modern farming techniques, while making the most of the European programmes and funds for investment credit, will foster the consolidation of agricultural land tracts and improve the conditions for their use.
We propose the following measures for improving the agricultural property servicing infrastructure, for increasing foreign investment and for developing Bulgarian agriculture:
• Formulation of a long-term government policy for development of agricultural areas;
• Decisive measures for effective absorption of funds under the EU programmes;
• Offering incentives to agricultural producers and guaranteeing the sale of their output;
• Protection of Bulgarian interests in the European Union by means of achieving optimum quotas for Bulgarian farm produce;
• Upgrading the qualifications of personnel and providing additional incentives to sector employees;
• Active partnership between the State and private business in building the necessary service infrastructure for agricultural producers;
• Promoting the sustainable development of agricultural areas and development of alternative employment;
• Formulation of strict and clear rules for disbursement of subsidies from the EU funds in particular subsectors (plant- and vegetable-growing, livestock- and poultry-breeding, forest management and reforestation, irrigation and land reclamation);
• Streamlining application procedures for European subsidy programmes;
• Delegating broader powers to branch organizations.
The environment
The modern way of life requires conformity with an optimum relationship between man and nature. The future generations depend on us.
In the field of environmental protection we favour:
• Sustainable spatial development;
• Protection of unique natural assets and resources;
• Compliance with European standards;
• Strict legislative measures regulating protected areas.