28.02.2023
GREECE IS EXPECTING A STRONG TOURIST SEASON, BUT THERE ARE NO WORKERS
Greece expects a very strong tourist season, but cannot find enough workers. A total of 80,000 is not enough for hotels and restaurants.
An unexpected increase in bookings already in the first month of this year, reports the Greek Ministry of Tourism.
The Ministry of Tourism indicated a forecast for a 20% increase in tourists this year compared to the successful year 2019. The government allocates 350 million euros for hotel renovations, infrastructure in tourist areas and advertising.
The season will open as early as March, with 18 billion euros in revenue expected this year.
Early bookings point to a very strong season, and in terms of prices, no sharp increase is expected, experts emphasize. A new campaign to popularize the Greek summer has also been launched, the Minister of Tourism said.
There is increased interest from all European countries, and Northern Greece traditionally relies on tourists from the Balkans.
There is a shortage of workers in the tourism sector and hoteliers are demanding that the government provide 30,000 workers from abroad.
27.02.2023
WHERE YOUNG PEOPLE FIND WORK IN OUR COUNTRY MOST EASILY
There are fewer unemployed youth in Varna and Sofia, according to the latest Eurostat data. With average youth unemployment in our country in 2021 of 15.8%, it was 8.9% in the capital, and only 5.3% in Varna.
Things are not like that in the other seaside city - Burgas, where youth unemployment was even higher than the average for the country - 17% and Plovdiv - 19%.
In 2021, there were 3 million unemployed young people (aged 15–24) in the EU, and the youth unemployment rate was 16.6%.
Among EU urban regions, the largest difference in the youth unemployment rate compared to the corresponding national average was recorded in Palermo (+26.1 percentage points (p.p.) compared to the national average for Italy).
Youth unemployment levels were also more than 20 percentage points higher than the corresponding national averages in Messina (Italy; +25.3 percentage points), Les Abimes (France; +24.4 percentage points), Taranto (Italy; +24.0 percentage points), Las Palmas (Spain; +23.7 p.p.) and Napoli (Italy; +22.4 p.p.).
In contrast, the youth unemployment rate is lower than the national average in Bergamo (-18.4 percentage points compared to the Italian average). Other low levels compared to the respective national averages were recorded in Bratislava (Slovakia; -18.0 p.p.), Brasov and Cluj-Napoca (Romania; both -13.7 p.p.) and Timisoara (Romania) ; -13.6 p.p.).
Along with Italy, there were significant regional differences in youth unemployment rates in Romania and Spain. The youth unemployment rate in Craiova is 5.2 times higher than in Brasov; and in Las Palmas it is 2.6 times higher than in Pamplona/Irunha respectively.
24.02.2023
UNIVERSITY PROFESSORS WITH A COLLECTIVE MONOGRAPH "HISTORY OF BULGARIAN ENTREPRENEURSHIP"
The collective monograph "History of Bulgarian Entrepreneurship" was published. This is the first attempt to systematically present the origin and development of entrepreneurship in Bulgaria. The initiator of the project is the Executive Agency for the Promotion of Small and Medium Enterprises, and the book was published with the active support of the executive director of the EAPSME, Dr. Boyko Takov.
Part of the author's team are professors from the Faculty of Economics of the Sofia University "St. Kliment Ohridski" - Prof. PhD Tsvetan Davidkov; Prof. Dr. Desislava Yordanova; Prof. Dr. Ralitsa Ganeva; Assoc. Ph.D. Sonia Georgieva - and the University of National and World Economy (UNWE) - Prof. D.Sc. Pencho Penchev; Assoc. Dr. Kostadin Kolarov; Ch. Assistant Dr. Silvia Georgieva.
The publication is useful for active and budding entrepreneurs; for university professors and Bulgarian school teachers. For decision-makers in the field of business regulation. For students, researchers, inquisitive colleagues and citizens. The monograph is distributed free of charge and can be downloaded from the website of the Executive Agency for the Promotion of Small and Medium Enterprises.
23.02.2023
NEW POSSIBILITIES FOR FINANCING THE TOURISM BUSINESS FOR ENERGY RENOVATION OF BUILDINGS
The tourism business can receive financing under the National Plan for Recovery and Resilience of the Republic of Bulgaria under a new open procedure. The Ministry of Regional Development and Public Works announced on February 2, 2023 a procedure for the selection of proposals for the implementation of investments from final recipients BG-RRP-4.021 "Support for energy renovation of buildings in the sphere of production, trade and services".
The deadline for submitting project proposals for the implementation of investments is 15.06.2023. The main purpose of the current procedure is to provide funds from the Recovery and Resilience Mechanism for the energy renovation of buildings in the sphere of production, trade and services, including from the "Tourism" sector. The total amount of funds under the procedure is BGN 235,200,000. Eligible applicants are micro, small, medium and large enterprises registered no later than 31.12.2019.
Proposals are submitted entirely electronically by completing a web-based Application Form. The form and accompanying documents are submitted through the Information System for the Mechanism (ISM) - the Information System for the Management and Monitoring of the EU Structural Instruments in Bulgaria (ISUN 2020), section "National Recovery and Resilience Plan", only with the use of a valid Qualified electronic signature, through the "E-candidacy" module. The documents for the procedure can be found here.
Experts of the Ministry of Tourism and representatives of the industry participated actively together with the Ministry of Regional Development and Public Works in the development of the procedure, most of the proposals made were accepted in the final version of the documents. A summary of the procedure for obtaining grants BG-RRP-4.021 "Support for energy renovation of buildings in the sphere of production, trade and services" under the National Recovery and Resilience Plan can be found here.
22.02.2023
MINISTER STOYANOV EXPLAINED THE INVESTMENT INTENTIONS FOR THE OGOSTA DAM
The Minister of Economy and Industry Nikola Stoyanov visited Montana and met with the mayor of the city Zlatko Zhivkov and about 150 people from the local community, before whom he explained the investment intentions to build a floating photovoltaic park on the Ogosta dam.
Minister Stoyanov announced that a well-known German company has expressed in writing investment intentions to build a floating photovoltaic plant in Bulgaria, and the Bulgarian government has recommended the Ogosta dam, as it is the second largest dam in our country and in the Balkans, and its wall needs renovation for BGN 30 million, and also to attract investors to Northwestern Bulgaria, who would create jobs for the local people. He clarified that the Bulgarian state has not made any specific commitments regarding the project.
Stoyanov explained that after the declaration of intentions by the investor, a working group of experts from five ministries - of the economy and industry, of agriculture, of energy, of the environment and water, and of regional development and public works - was created, which came up with an opinion , that changes should be made to four laws in order to have a legal basis for the construction of such floating parks. At the moment, there is no concept of a floating photovoltaic park in Bulgarian legislation, and its introduction can only be made with legal changes adopted by a future National Assembly.
Minister Stoyanov announced that the plan is for the future investor to repair the wall of the Ogosta dam and build the solar park on an area of about eight square kilometers, given that the entire area of the dam is 22 square kilometers. There will be a competition for the concession of the water area and the best investor proposal will be chosen, Stoyanov specified. He announced that the project would not go ahead before an environmental impact assessment was done, before it was clear that it would not interfere with fishing and fish populations in the dam.
22.02.2023
WHAT IS THE MINIMUM RETURN OF MANDATORY PENSION FUNDS?
The Financial Supervision Commission has determined the minimum yield for mandatory pension funds for the period from December 31, 2020 to December 30, 2022, the Commission announced.
Since insurance in a universal and professional fund is mandatory, and the state does not provide guarantees to cover losses in the management of these funds, the legislator has provided a special mechanism for guaranteeing a minimum yield.
For this purpose, a reserve is created in the pension fund, which is formed by the excess of the yield achieved by the fund above a certain percentage above the average, as well as a second reserve in the company, which is in the amount of not less than 1% of the fund's assets.
The reserve in the pension company is formed with its own funds and serves to cover the difference to the minimum yield when the reserve in the fund is exhausted.
All funds for supplementary mandatory pension insurance have achieved profitability for the specified period above the specified minimum level of profitability for the respective type of fund, reports the regulator.
The minimum yield of universal pension funds for the period, on an annual basis, is minus 6.36 percent. For the period with a positive yield of all universal pension funds, only universal pension fund "TCB Sila" has a yield of 1.07 percent on an annual basis.
The minimum yield of professional pension funds for the period on an annual basis is minus 5.13 percent. There are four funds with a positive yield - professional pension fund "Saglasie" - with an annual yield of 0.76 percent, professional pension fund "TCB Sila" - 2.80 percent annual yield, professional pension fund "Badeshte" - 1.11 percent hundred and professional pension fund "POI" with a yield of 0.14 percent per year.
The weighted average annual yield of voluntary pension funds for the last two years is minus 1.3 percent on an annual basis, reports the Commission for Financial Supervision. Voluntary pension fund "Saglasie" - 5.56 percent, voluntary pension fund "TCB Sila" with a yield of 4.04 percent and voluntary pension fund "NOI" - 1.05 percent annual yield have a positive annual yield.
22.02.2023
UNIVERSAL PENSION FUND - EVERYTHING YOU NEED TO KNOW
Additional mandatory pension insurance is the second pillar of our pension system.
All persons born after December 31, 1959 are obliged to provide for a second pension in a universal (for those working under the conditions of the third labor category) or professional (for those working under the conditions of the first and second labor categories) pension fund.
This happens in addition to the insurance in the "Pensions" fund of the state social insurance (DOO).
The purpose of supplementary mandatory pension insurance in a universal pension fund (UPF) is to provide additional income by providing an additional lifelong old-age pension upon reaching retirement age.
Initial allocation
Insured persons participate in a universal pension fund through an individual application to the pension insurance company, submitted within three months of the initial occurrence of the obligation to provide insurance.
For persons who have not chosen a universal pension fund, official distribution is carried out according to the registered universal funds in the manner and according to the order determined by the National Revenue Agency and a commission.
What contributions are received in the UPF?
Insurance in the UPF is carried out on a capital-coverage basis. The amount of the contribution is 5% of the insurance income, with 2.8% from the employer and 2.2% from the employee.
Insurance contributions and the return on their investment are accumulated in an individual account of the insured person.
Upon retirement, the person receives one "state" pension from the Social Insurance Institution and a second pension from the UPF. Its amount depends on the funds accumulated on his account and the realized yield from their investment.
The fees
Universal pension funds charge two types of fees on our money. "Management fee" is deducted from each insurance contribution that is transferred to the pension fund. It is in the amount of 3.75% of the amount.
The investment fee is 0.75%. It is withheld on an annual basis from the value of the fund's net assets, depending on the period during which they were managed.
Rights of insured persons and heirs
Insured persons can only be insured in one universal pension fund. The rights to the accumulated sums under the individual lots are personal (only the insured person or his heirs have rights to them).
The insured person has the right to transfer the accumulated funds of the individual lot from one universal pension fund to another.
Types of pensions and payments
Insured persons who have reached retirement age under the conditions of the third category of work are entitled to receive the funds accumulated in their individual accounts in the UPF. The method of obtaining depends on their size and personal choice.
One-time payment - when the funds are less than BGN 1,401 - three times the amount of the minimum pension for length of service and age (BGN 467)
Deferred payment – when the funds are more than three times the amount of the minimum pension, but are not sufficient to grant the minimum lifetime pension of BGN 70.05 (15% of the minimum pension).
Additional lifetime pension - at the current amount of the minimum pension (BGN 467), to grant the basic pension from the UPF above the minimum amount, BGN 14,372 is required.
How can I check in which pension fund I am insured?
Can I withdraw funds from my individual account before retirement?
The law allows those insured in a universal and/or professional fund to withdraw up to 50% of the accumulated funds in their individual account in case of a permanently reduced working capacity of more than 89.99%, certified by an expert decision of TEMC/NEMC.
21.02.2023
GRANTS OF UP TO BGN 100,000 ARE AWARDED TO IMPROVE WORKING CONDITIONS IN COMPANIES
Recruitment of employer projects for co-financing under the Working Conditions Fund of the Ministry of Labor and Social Policy in 2023 begins.
Funds will be allocated for the improvement of working conditions in enterprises and for the development of activities on the diagnosis of occupational diseases. This became clear after today's meeting of the National Council on Working Conditions and the Management Board of the fund.
The maximum amount of funds provided by the "Working Conditions" Fund is up to 30 percent of the approved and actually incurred costs for the implementation of the project, but no more than BGN 100,000.
The aim is, through their implementation, to improve the microclimate, electrical and fire safety, technical safety of work equipment and sanitary and domestic conditions in enterprises, as well as to reduce the levels of dust, noise, vibrations, harmful radiation and dangerous chemical substances.
Projects are accepted every working day in the office of the Working Conditions Fund. All details and application conditions can be found on the fund's official website https://www.mlsp.government.bg/dokumenti-za-kandidatstvane.
Among the good practices in the projects are the implementation of air conditioning and ventilation systems, construction of partition walls, reconstruction and construction of local aspiration devices above the source of dust or hazardous chemical substances. With the implementation of the projects, the lighting of the workplaces has been improved and the risk of occupational accidents has been reduced, noted the Ministry of Labor and Social Policy.
Through the activities on the diagnosis of occupational diseases, prevention has been strengthened and the culture of health and safety in enterprises has been improved, occupational and health risks in the workplace have been reduced.
In 2022, the Working Conditions Fund co-financed the implementation of projects in 53 enterprises, which improved the working conditions of 4,260 workers and increased their motivation. In some enterprises, between 80% and 100% of the staff are covered.
21.02.2023
WORKERS IN ROMANIA WITH ADDITIONAL PAID BIRTHDAY LEAVE
Workers in Romania have the right to an additional day off on their birthday. This is proposed by 20 senators from the governing coalition, who have already introduced legislative changes to the Labor Code.
People's representatives emphasize the importance of the human factor and its motivation for the functioning of any organization.
"Providing a paid day off on the day each of us celebrates a birthday contributes to the motivation of human resources, regardless of the sphere in which they carry out their activity, public or private. A motivated employee will actively contribute to increasing the efficiency of the relevant organization", the proponents of the project state in their reasons.
They believe that their idea brings other positives. Knowing that he will rest on his birthday, the employee will have the opportunity to meet the holiday in another settlement and use a tourist service, which will bring tax and fee income to the state or local budget.
"The birthday is an annual event in the life of each one of us, and we must offer every employee the opportunity to spend this day as he wishes - alone, with family or with friends," argued the Romanian MPs, quoted by local media.
They highlight the fact that Romanian employees are in first place in the EU in terms of hours worked per week in 2020, according to Eurostat data.
The project will first go to the Senate (the upper house) for discussion, and then to the Chamber of Deputies, which must make the final decision.
20.02.2023
BULGARIA WITH A GAP BETWEEN THE POOR AND THE RICH
In Bulgaria, the difference between the incomes of the richest and poorest people is the largest compared to other EU countries. In our country, the incomes of the richest 20% of the population are 7.5 times higher than the incomes of the poorest 20% of the population, announced the European statistical service Eurostat.
Eurostat does not indicate the reasons for the differences between the incomes of the richest and the poorest. But we can assume that factors such as the amount of pensions and social payments, the amount of the minimum wage and taxes on labor income and dividends have an influence on this difference.
In all EU member states, the 20% of the population with the highest incomes receive more than 30% of the total income in the respective country, Eurostat announced. But Bulgaria is in first place according to this indicator, with the wealthiest 20% of people in the country receiving 46.3% of all income. On average for EU countries, the 20% of the population with the highest incomes receive 38.2% of the income in the respective country.
The closest to us in terms of this indicator are Lithuania and Latvia, where the richest 20 percent take 42.8% and 42.2% of income, respectively. In fourth place is Portugal with 40.7%. In all other EU countries, this percentage is below 40 percent, with Italy in fifth place with 39.9%.
In all EU countries, the 20 percent of the population with the lowest incomes receive less than 10.5% of all income in the country concerned. The poor in Romania receive the least - only 5.6% of all income. In second place is Bulgaria, where the poorest 20% of the population take 6.2% of all income in the country. The third place is shared by Latvia and Spain with 6.4% each. On average for EU countries, the poorest receive 7.9% of all income.
The poorest receive less than 7% of all income in Bulgaria, Romania, Spain, Latvia, Italy and Greece. Only in the Czech Republic, Slovenia, Slovakia and Finland is the share of disposable income received by the poorest above 10%, and close to this level are Belgium (9.9%) and Ireland (9.5%).
Although in Romania the poorest receive a smaller share of income than in Bulgaria, the difference between the poor and the rich is significantly greater in our country.
The reason for this is that in Romania the top 20 percent of people with the highest incomes receive only 39.8% of all income. Thus, the difference between the incomes of the richest 20 percent and the poorest 20 percent in Romania is 7.1 times.
Bulgaria is a record holder in this indicator as well, with a difference between the incomes between the richest and the poorest in the amount of 7.5 times.
Apart from Bulgaria and Romania, in only three other EU countries this difference is over 6 times. These are Latvia (6.1 times), Lithuania (6.6 times) and Spain (6.2 times).
High values of this coefficient indicate significant differences in the distribution of income between groups with higher and lower incomes, according to Eurostat. On average for EU countries, the difference between the incomes of the richest 20 percent and the poorest 20 percent is 4.8 times.
The big difference between the incomes of the richest and the poorest in Bulgaria leads to facts such as the fact that our country is in first place in the EU in terms of new car sales growth, but the average age of cars in the country is the highest compared to others member states.
In addition, deposits in banks are growing, but the biggest growth is in the largest deposits, and people with low incomes are withdrawing money from their deposits to patch up the family budget. Some people have not changed their shopping habits since high inflation, but for others, buying food is already becoming a big problem.
The difference between the incomes of the richest and the poorest is the smallest in Slovakia - only three times. There, the richest 20% take only 31.2% of all income, and the poorest receive 10.3%. The situation is similar in Slovenia, where the difference between the incomes of the poor and the rich is 3.2 times.
Gini coefficient
We are #1 in the ranking of EU countries
Most often, to show the difference between the incomes of the poor and the rich, the Gini coefficient is used. A Gini value of 100% means that only one person receives all the income in the country, while a Gini value of 0% means that the income is distributed equally among the entire population.
The average Gini coefficient for EU countries is 30.1%, Eurostat announced. And Bulgaria is in first place in the EU according to this indicator.
The largest differences in income among EU Member States (with a Gini coefficient of at least 35%) are reported in Bulgaria (39.7%), Latvia (35.7%) and Lithuania (35.4%). Eurostat data show. The second group of Member States with a Gini coefficient above the EU average of 30.1% (ranging from 30.6% to 34.3%) includes Estonia, Germany, Malta, Greece, Italy, Spain, Portugal and Romania. At the other end of the ranking are the countries where income is more evenly distributed - Slovakia, Slovenia, Belgium and the Czech Republic, where the Gini coefficient is less than 25%.
They are best in Luxembourg
Our standard is half that of Italy and France
We overtook Romania
Our standard of living is half that of countries like Italy and France. Eurostat calculates purchasing power standards (PPS), which show the level of income, but also take into account the differences between prices in different member states.
On average for the EU countries, the annual disposable income per person is 18,019 PPS, Eurostat announced. The highest standard of living is in Luxembourg, where, despite high prices, the average annual income per person is 32,132 PPS. Bulgaria overtakes Romania in purchasing power of income. In our country, the average income per person is 9375 PPS, and in Romania it is 8703 PPS.
The highest levels of average annual disposable income are registered in the western and northern EU member states, according to Eurostat. The average disposable income per person is over 20 thousand PPS in Luxembourg, the Netherlands, Austria, Germany, Denmark, Belgium, Sweden, Ireland, Finland and France. Incomes are significantly lower in most southern and eastern Member States. The average disposable income per person is less than 10,000 PPS in Hungary, Greece, Bulgaria and Romania.
Among EU countries, there are significant differences in the contribution of social payments to people's disposable income. The largest social payments are in Luxembourg, Austria and France. In Bulgaria, pensions and other social payments per capita are exactly half of the average level for EU countries.
For people over 65, the inequality is smaller
Pensions among the lowest
Social payments are crucial
The purchasing power of pensions and social payments in Bulgaria is among the lowest in the EU countries, according to Eurostat data. However, among people over the age of 65, income inequality in Bulgaria is less than among the rest of the population.
There are several reasons for this. On the one hand, there is a maximum insurance income in Bulgaria. This means that even if a person receives very high incomes, he pays insurance up to the ceiling, which is currently BGN 3,400, and accordingly has a ceiling on the amount of pensions. In addition, pensions in Bulgaria are extremely low and nearly half of pensioners receive the minimum pension for the country. And there are not many people who receive high pensions.
Despite all this, Bulgaria is among the countries with the largest difference between the incomes of the richest 20 percent and the poorest 20 percent, and among people over the age of 65. In our country, the difference between the incomes of the richest and the poorest people over 65 is 5.2 times, Eurostat data show. According to this indicator, only Latvia (5.7 times), Portugal (5.7 times) and Italy (5.3 times) are ahead of us, and we share the fourth place with Spain, where the difference is also 5.2 times.
For EU countries, people aged over 65 have less income inequality, with the ratio of the incomes of the richest 20 per cent to the poorest 20 per cent averaging 4.2 times. The only exception is Cyprus, where there is greater income inequality among people over 65. And in Portugal, Ireland and Slovenia, there is no difference in income inequality between the over-65s and the rest of the population.
Pensions and other social payments significantly reduce the gap between the incomes of the poorest and the richest. Social payments include all benefits provided by central or local institutions and include, for example, unemployment benefits, sickness and disability benefits, housing benefits, pensions, social assistance and tax credits. Social payments reduce income inequality. On average for EU countries, the Gini coefficient before social payments is 52.2%, and after them it decreases to 30.1%, according to Eurostat data.
The impact of pensions and other social payments on income inequality is particularly large in Germany, the Netherlands and France - where the Gini coefficient decreased by between 25.1 and 29.5 percentage points, and in Sweden, where the coefficient decreased by 30.1 percentage points - from 56.9% to 26.8%. Among EU member states, the lowest impact of pensions and other social payments on income inequality was registered in Latvia (12.5 percentage points). In Bulgaria, social payments also do not have a very large effect on inequality - the Gini coefficient decreases from 54% before social payments to 39.7% after receiving pensions and social assistance amounts.
