20.12.2021
INTEREST RATES ON LOANS WILL RISE
Interest rates on loans will rise by the end of the year. This is what financial intermediaries expect, according to the Finance Ministry's quarterly bulletin "Financial Sector: Estimates and Expectations". The opinions of financial intermediaries reflect their assessments and expectations arising from the situation with the COVID-19 pandemic.
The answers for maintaining interest rates still prevail, but in this issue the share of opinions on the increase increased significantly compared to the previous quarter at the expense of neutrals. In the third quarter there was a decrease in average interest rates for the period compared to the second quarter in corporate and housing loans and a slight increase in consumer loans, and in October there was a decrease compared to these values in all three market segments, said the Finance Ministry.
A possible explanation for the expectations of the participants in the survey is a possible increase in credit risk in banks' portfolios. Factors for this would be the expected slowdown in the economy by the end of the year, as well as a gradual decline in the amount of loans approved for participation in the private moratorium on repayments of liabilities of non-financial corporations and households to banks.
Inflation expectations of respondents until the end of 2021 continue to rise and already point to a sharp rise in consumer prices. The distribution of responses is similar to that in the previous edition, with views on strong inflation rising. The moderate increase in consumer prices predicted by the survey participants in the third quarter exceeded expectations.
From 2.4% in June, the annual inflation rate (according to the HICP) reached 4% in September. Expectations for the fourth quarter have also been partially met, after the annual increase in the HICP reached 5.2% in October due to a significant increase in energy and food prices.
The participants in the survey predict that the rate of economic growth will slow down in the fourth quarter of the year. Banks are the most optimistic here as well, while 80% of investment intermediaries expect a slowdown in growth. The summarized result corresponds to the deterioration in October of the NSI business monitoring indicators on consumer confidence and the business climate in services, industry and trade.
Business optimism is growing for next year, but he is still cautious in his plans and sees risks to economic development that worry him. This shows the traditional survey of the Bulgarian Chamber of Commerce. It was held in the period November 8 - December 8, 2021 among 817 micro, small, medium and large enterprises across the country and from all sectors of the economy.
Financial intermediaries strongly express their expectations for an increase in intercompany indebtedness in the fourth quarter of this year compared to the previous one.
Higher international prices and difficult deliveries in some sectors could also lead to delays in payments between companies. Investment intermediaries, pension companies and management companies are the most pessimistic among respondents to the Finance Ministry's survey, while about 25% of commercial banks expect the level of intercompany indebtedness to remain.
A total of 42% of respondents expect an economic downturn in 2022, but in last year's survey pessimists were almost twice as many. 17% do not expect any change, and 31% are optimistic, which is three times more than last year.
The majority of respondents see the risks to the development of the Bulgarian economy in the expected increase in prices, fiscal and regulatory burden, as well as a decline in the number of jobs.
Respondents have the most serious concerns about the future regarding high energy prices and inflationary pressures (80-82%). 70% of respondents expect the covid crisis and the slowdown in global growth to have a negative impact on their business performance in 2022. There is serious pessimism about European environmental regulations, which are expected to have a negative impact on 53% of respondents.
Wage growth is projected by 49% of respondents, which is rather due to the expected increase in the minimum wage, and hence - an overall increase in labor costs.
20.12.2021
COMPANIES WILL BE HANDING OUT BIGGER CHRISTMAS BONUSES THIS YEAR
This year, the companies plan to distribute larger bonuses than in 2020, according to a study by the Chamber of Commerce.
More than 80 percent of companies are planning Christmas bonuses for employees. This year, the companies plan to give better bonuses than in 2020, according to a study by the Chamber of Commerce and Industry. More than 80 percent of companies are planning Christmas bonuses for employees.
Despite the vague outlook and impact of the pandemic, much of the business is planning Christmas bonuses for staff. 30 percent of employers provide bonuses of up to BGN 200. Approximately the same amount is between BGN 200 and BGN 500, and about 20 percent will give out bonuses of up to BGN 1,000.
Entrepreneurs who declare that the additional remuneration is within the capabilities of their companies are almost a quarter more than last year. However, 12 per cent say they do not provide Christmas bonuses due to the effects of the crisis, and another 5 per cent have not yet made a final decision.
More than half of the managers state that they will give the same bonuses to everyone, and 35 percent will determine the additional remuneration individually according to the performance of the employees.
17.12.2021
WHAT KIND OF WORKERS WILL THE BUSINESS NEED NEXT YEAR?
The Bulgarian business will need 193,792 workers and specialists with skills and knowledge in various professional fields in the next 12 months.
This is shown by the results of the completed second (autumn) for 2021 national representative survey among active employers in Bulgaria on their short-term labor needs, the press center of the Employment Agency announced.
The survey is conducted jointly by the Employment Agency and the Employment Commissions of the Regional Development Councils in the 28 districts in the country.
The survey aims to collect and analyze up-to-date information on the professions, competencies, knowledge and skills of the employees sought by employers. The information collected refers to the demand for labor, both in the next 12 months and for the next three to five years. From 2020, the questionnaire also includes questions concerning the impact of COVID-19 on the required staff.
According to the National Statistical Institute, 4,325 employers in nearly 395,000 active enterprises took part in the autumn survey. In terms of economic activity, employers from the Trade, Transport, Hotels and Restaurants sector participated the most - 37 percent, followed by the Industry and Public Administration, Education, Humanitarian Health sectors - by 14.6 percent each. The largest share of companies is in the major industrial centers - Sofia, Plovdiv, Varna, Burgas, and the smallest - in the districts of Vidin, Silistra, Targovishte and Razgrad.
According to the survey, 46,924 employers intend to hire new staff over the next 12 months. Compared to the poll a year earlier - in September 2020, their number has shrunk by 14.5 percent.
Over the next 12 months, employers will need 108,487 qualified specialists, the most sought after being tailors, machine operators, builders, workers in the food industry, clothing operators, welders, landscaping workers, and operational accountants.
The Bulgarian business will need another 43,710 specialists with legal capacity or higher education, and the most sought-after professions will be: nurses, drivers, teachers, doctors, civil engineers, specialists in Information and Communication Technologies. Compared to a year earlier, the number of sought-after graduates has shrunk by 2.4 percent. There is no change in the most sought-after specialists with legal capacity or higher education. A total of 41,595 workers without a specialty will be needed in various sectors of the economy in the next 12 months, with an increase in demand on an annual basis of 8.1 percent.
A total of 72.2 per cent or 33,879 employers said they had difficulty finding suitable staff. In comparison, their share is 5.4 points higher than that of those who said they encountered difficulties a year ago. Employers have the most serious difficulties in finding sales consultants, machine operators, tailors, operational accountants, builders, while a year ago these professions were: cooks, again sales consultants, electricians, welders, sales representatives and builders.
The main form of employment in the next one year will be a permanent contract and a full-time job, which is stated by 78.8 percent of employers. Remote and home work would be offered by less than 700 employers.
A new wave of COVID-19 will negatively affect the decision to look for new staff at 52.3 percent of employers who intended to hire one. 47.7 percent are those who say they will not reduce the planned number of new staff wanted in the event of a new COVID -19 wave. In the case of such, employers will refuse to create 70,686 new jobs, nearly 70 percent of which will be for unskilled workers and 30 percent for professionals and management positions. In other words, a new COVID-19 wave would reduce the planned job creation by 36.5 percent, with the creation and dissemination of information and creative products being the most affected - a 52.8 percent reduction in new jobs and the construction sector - by 49.2 percent fewer new jobs.
In the next three to five years, the most sought after specialists will be in the fields of Economics, Administration and Management and Informatics and Computer Science, while the demand for specialists with secondary education will be in the fields of Wholesale and Retail, Construction and Production technologies - textiles, clothing, footwear and leather.
The most important competence that employers expect from the required staff is communication in the native language, followed by initiative and entrepreneurship, and digital competence.
In 11 of the 28 districts the declared labor needs are less than the registered unemployed, while in the remaining 17 the need for specialists and workers exceeds the number of registered jobseekers. In the district of Burgas the needs for labor force exceed 2.7 times the number of registered unemployed, in Sofia-capital the needs are 2.3 times more. In Shumen district the labor needs are only 35 percent of the available registered unemployed, in Lovech the needs are 44 percent of the free labor force.
Compared to the results of the survey a year ago, the total demand for labor remains almost unchanged, with half of the districts reporting an increase in labor demand compared to the previous year. The needs for workers and specialists in the Kyustendil district are growing most significantly - eight times. The districts of Vidin follow - almost six times, Yambol - four times, Dobrich - twice. At the other pole are the districts of Stara Zagora and Pernik, where needs are shrinking almost twice compared to 2020.
17.12.2021
UNEMPLOYMENT IN THE NORTHWEST HAS FALLEN
At the end of November, unemployment in the three northwestern districts of Montana, Vidin and Vratsa was 10.1 percent, while at the same time in 2020 it was 11.9 percent, according to the Regional Employment Service in Montana.
Compared to October, the unemployed in the three districts increased by 0.2 percent.
The registered unemployed at the end of November in the three districts were 17,396 people, which is 295 more than in October and 3,181 less than a year earlier. The highest unemployment rate is in the municipalities of Ruzhintsi - 49.6 percent and Yakimovo - 41.5 percent, and the lowest in the municipalities of Vratsa -3.6 percent and Montana - 4.0 percent.
In November, 923 unemployed people started working. Their number is 202 less than in October and 50 more than in the same month last year.
Under the anti-crisis measure 60/40 in the period from October 12 to November 30, 2021 in the three northwestern districts were approved 194 applications of employers for payment of 3,867 people, said the Regional Employment Service in Montana.
17.12.2021
OVER A BILLION EUROS FOR EUROPE'S DIGITAL CONNECTIVITY BY 2023
The European Commission has adopted the first work program for the digital part of the Connecting Europe Facility (CEF Digital), which sets out the scope and objectives of EU-supported action needed to improve Europe's digital connectivity infrastructures over a 3-year period. Funding of more than € 1 billion has been allocated to these actions (for 2021-2023).
By promoting public and private investment, CEF Digital will contribute to connectivity projects of common interest to the EU and to the deployment of safe, secure and sustainable high-performance infrastructure, including gigabit and 5G networks across the EU. Improving Europe's connectivity infrastructure will be essential to Europe's digital transformation, as set out in the Road to the Digital Decade, and to ensure that all EU households have access to gigabit connectivity and all populations. areas will be covered by 5G by 2030.
On this occasion, Margrethe Westeger, Executive Vice-President for Europe Prepared for the Digital Age, said: "Investing in cross-border connectivity will continue to play a key role in Europe's transformation and competitiveness. Improving networks and infrastructure will give European citizens and businesses access to new jobs, as well as the opportunity to compete in new markets and develop their activities."
Thierry Breton, Commissioner for the Internal Market, added: "Secure and high-speed connectivity is the foundation on which we will build Europe's digital decade. It will give Europeans access to digital skills, enable businesses to innovate and help deliver unprecedented applications in areas such as health, education and online public services."
The Connecting Europe Facility funding program will also strengthen connectivity networks by supporting new or improving existing supporting infrastructures within the EU and between the EU and third countries. This is essential for the interconnection of digital capacities, such as cloud computing services, data and computing technologies, in line with the EU's ambition to maintain its digital sovereignty.
CEF Digital
The following key actions are expected to be supported under the CEF Digital:
Next steps
The first calls for proposals under the Connecting Europe Facility in the field of digital technologies will be published in early January 2022. Shortly after the launch, stakeholders will be able to attend an "information day" to learn more about the priorities. and the main aspects of the calls, as well as the evaluation and award process.
Context
With a budget of up to € 2 billion by 2027, the CEF Digital will support the digital transformation and Europe's goals for fixed and mobile connectivity in the context of the Digital Decade. It is part of the Connecting Europe Facility, which supports € 33.7 billion in investments in trans-European digital, transport and energy networks between 2021 and 2027.
The first generation of the Connecting Europe Facility for the period 2014-2020 improved the infrastructures connecting Member States and provided free wireless internet to local communities through the WiFi4EU program. It also supported the deployment of very high capacity networks in rural and semi-rural areas across Europe through the Broadband Fund for Europe (CEBF).
For more information
Connecting Europe Facility - Work Program
17.12.2021
THE MAP OF REGIONAL AID FOR BULGARIA FOR THE PERIOD 2022-2027 HAS BEEN APPROVED
The European Commission has approved, in accordance with the EU rules on state aid, the map of Bulgaria for granting regional aid from January 1, 2022 to December 31, 2027 within the revised guidelines for regional aid.
The revised Guidelines on Regional Aid, adopted by the Commission on 19 April 2021 and entering into force on 1 January 2022, enable Member States to help Europe's most disadvantaged regions to catch up and reduce disparities in economic prosperity, income and unemployment - the cohesion goals that underpin the Union. In addition, they give Member States more opportunities to support regions facing transition challenges or structural challenges, such as depopulation, to make a full contribution to the environmental and digital transition.
At the same time, the revised regional aid guidelines contain strong measures to prevent Member States from using public funds to stimulate the export of jobs from one EU Member State to another, which is essential for fair competition in the single market.
The map of Bulgaria for regional aid indicates the Bulgarian regions that meet the conditions for granting regional investment aid. In addition, it sets out the maximum aid intensities in the eligible regions. The aid intensity is the maximum amount of state aid that can be granted to a beneficiary, expressed as a percentage of the eligible investment costs.
According to the revised guidelines for regional aid, the conditions for granting regional aid are met by regions covering the entire population of Bulgaria.
In each of the above regions, the maximum aid intensities may be increased by 10 percentage points for investments by medium-sized enterprises and by 20 percentage points for investments by small enterprises in the case of their initial investment with eligible costs of up to EUR 50 million.
Following the launch of the future Territorial Plan for a Fair Transition under the Fair Transition Fund Regulation, Bulgaria will have the opportunity to notify the Commission of changes to the regional aid map approved today in order to maximize aid intensities in future areas of the Fair Transition transition, as indicated for type "a" regions in the revised regional aid guidelines.
Context
Europe has always been marked by significant regional disparities in economic prosperity, income and unemployment. Regional aid aims to support the economic development of disadvantaged regions in Europe, while ensuring a level playing field between Member States.
In the Guidelines on regional aid, the Commission shall determine the conditions under which regional aid may be considered compatible with the internal market and shall establish the criteria for determining the regions eligible under Article 107 (3) (a) and (c). of the Treaty on the Functioning of the European Union (type "a" and "c" regions respectively). The annexes to the guidelines list the least favored regions (so-called "a" regions), which include the outermost regions and the regions where GDP per capita is less than or equal to 75% of the average. for the EU, and pre-defined 'c' regions, which are former 'a' regions and sparsely populated regions.
Member States may designate so-called "c" type regions which are not pre-defined, subject to a maximum pre-defined type "c" coverage (figures are given in Annexes I and II to the Guidelines), and in accordance with certain criteria. Member States need to submit their proposal for regional aid maps to the Commission for approval.
A non-confidential version of today's decision will be available under case number SA.64724 (in the State Aid Register) on the website of DG Competition. New publications of State aid decisions on the Internet and in the Official Journal are listed in the State Aid Weekly e-News.
17.12.2021
2021 THROUGH THE EYES OF BUSINESS
BIA presented the results of its traditional online survey of members of the Chamber, conducted in the period November 8 - December 8, 2021 among 817 micro, small, medium and large enterprises across the country and from all sectors of the economy.
The survey is being conducted for the 17th consecutive year, and the aim is to examine the state of business in the current macroeconomic conditions. The main topics are related to the impact of political processes internationally and nationally on business in Bulgaria, as well as business planning for the next calendar year. This year, special emphasis is placed on the impact of the covid crisis on business.
For the last decade, 2020 was the year full of business negativity - both as an assessment of the current situation and as a vision for the future. A year later, there is a timid attempt to push from the bottom. This year, the pessimism is most pronounced regarding the expectations for a drastic rise in the prices of energy resources and raw materials, inflation - both nationally and globally.
Concerns in business are rooted mainly in the ongoing (and in the foreseeable future) covid crisis, as well as in the political turbulence in our country, which leads to instability and ambiguity, inability to be predictable and planning.
The general feeling is that the support measures are insufficient and slow. Therefore, it is not surprising that less than half of the companies have benefited from some of the anti-crisis measures - especially those to support employment. Real measures to support corporate liquidity are missing or not attractive and well-known enough.
As a result, businesses are doing the (un) possible to save jobs and market positions, incl. by adapting costs, transforming production, using digital technologies, developing online sales, telecommuting, flexible working hours, holidays and staff optimization.
The covid crisis has created a shortage of working capital in almost 80% of enterprises. This, combined with years of problems with bureaucracy, regulatory and administrative burdens, an unstable regulatory environment, corruption and inefficient judiciary, puts heavy pressure on any business venture.
In the conditions of unclear perspectives, mainly related to the development of the medical crisis and the accompanying interruptions in the supply chains, shortage of raw materials and energy resources, the business remains highly pessimistic, so its expectations and plans for the future are too cautious, subject to pragmatism.
17.12.2021
FARMERS ARE CHECKING THAT THEIR FIELDS ARE ELIGIBLE FOR SUPPORT
Farmers can now check whether their fields are eligible for support. If they have objections to the data, they must submit it no later than January 7.
Farmers can check whether the areas of subsidization they have applied for fall within the scope of the specialized layer project, the areas eligible for support. They can also get acquainted with the preliminary results of the inspections of the fields requested by them, as inquiries are made in the electronic services system of the Agriculture Fund.
In case of disagreement in the specified data, each candidate may submit an objection to the Minister of Agriculture.
Objection samples are generated automatically by the electronic services system.
Farmers who are registered in the system will be able to generate objections from their personal profiles in it, and the rest - from the public part of the system, after which objections will be submitted to the regional directorates "Agriculture".
17.12.2021
AN IMPORTANT DEADLINE FOR INCOME TAXATION IS COMING TO AN END
Individuals registered as farmers have the right to choose the order of taxation of income from their activities in 2022, reminded by the National Revenue Agency (NRA).
The right to choose is exercised by submitting a declaration under Art. 29a, para. 4 of the Personal Income Tax Act by December 31 of the previous year. The choice is valid for 5 consecutive tax years and does not need to be confirmed annually by submitting a new return. Upon taxation under the procedure provided for sole proprietors, natural persons registered as farmers may not exercise the right to assign the tax on the annual tax base, which is provided for in Art. 48, para. 6 of the Personal Income Tax Act.
Newly registered in 2021 farmers can choose for the same year to be taxed on the annual tax base under the procedure provided for sole proprietors (Article 28 of the Income Tax Act), and the choice is declared in the annual tax return under Art. 50 of the Personal Income Tax Act for 2021.
In case they wish to continue with this order of taxation in 2022 and the next four years, it is necessary to submit a declaration under Art. 29a, para. 4 of the Personal Income Tax Act by 31 December 2021.
The sample declaration for choosing the order of taxation of farmers' income can be found on the website of the Revenue Agency www.nra.bg, section "Forms".
The declaration is submitted personally by the farmer or his authorized representative in the office of the NRA at the permanent address of the individual. The declaration can be submitted electronically through the electronic services portal of the Revenue Agency or by mail.
More information on choosing the procedure for taxation of income, filling out the declaration and paying the taxes due, farmers can get on the phone of the Information Center of the NRA: 0700 18 700 (at a price according to the tariff of the operator).
17.12.2021
THE ROMANIANS ARE BEATING US AND THE GREEKS ON THE STANDARD OF LIVING
The lowest standard of living in the EU in 2020 was reported in Bulgaria (39% below the EU-27 average in 2020), followed by Croatia, where in 2020 it was one third (32%) more low than the European Union average.
Unlike us, Romania has climbed 7 positions and its population has a higher standard than in Estonia and Greece.
This is shown by Eurostat data on actual individual consumption, published on Thursday. The indicator measures the actual consumption of goods and services in a country, whether paid for by households, the state or non-profit organizations.
Bulgaria also has the lowest GDP per capita - 45% below the EU-27 average.
In 2020, the highest standard, expressed in real individual consumption per capita, was registered in Luxembourg, 45% higher than the European Union average, according to the latest Eurostat estimate.
It is followed by Germany and Denmark, where it is 24 and 22% higher than the average, respectively, and close to the Netherlands and Austria, where it is 17 and 16% above the European average.
The closest to the average in terms of actual individual consumption per capita in 2020 were Cyprus, Italy and Lithuania, where the standard was about four percent lower than the EU average. It was 10 percent lower in Ireland and slightly above the French average.
