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The document summarizes the speeches that were delivered and the discussions that took place during the international conference Shaping a Common Security for Southeast Europe - New Approaches and Shared Responsibilities held on 5-6 September, 2003 in Sofia.
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Following the socialist revolution in 1944, the legal system and legislation served the purpose of fortifying the economic framework of socialist society. A number of laws adopted in the first years of socialism put public property and socialist planned economy in the foreground. Private property was rejected and certain laws were passed stipulating the expropriation of private means of production, the collectivization of farm land, and finally, the nationalization of personal property of citizens - housing, and others.
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The cooperative forms of business and social activity are deeply rooted in the traditions of the economic development of Bulgaria. The Bulgarian cooperatives were established as a form of management more than one hundred years ago, shortly after the liberation from the Turks. The first cooperative was formed in 1890 in the village of Mirnovo, Pirdop region. Its name, "Plough", reflects the primitive technical level of agriculture at that time when the wooden plough was the predominant agricultural tool. The number and the types of cooperatives (credit, consumer, agricultural, production, tobacco, silk-worm, forest, dairy, etc.) increased rapidly. In 1909 the number of the cooperatives and associations totaled 492, in 1927 they were 2 852, while in 1941 they went up to 4 476, 1 116 of which were production cooperatives. In 1907 the First General Union of the agricultural cooperatives was founded. During this period the growing number of cooperatives followed the downward trend of the average farm area: 63 dca in 1910, 57 dca in 1926, 49 dca in 1934, 42 dca in 1946. Even at that time the cooperative aimed at more efficient use of the cultivated land through its amalgamation.
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The main objective of the IT monitoring conducted by Vitosha Research is to collect and analyze systematic information of the use of PCs and the Internet by the Bulgarian population. IT monitoring findings are based on data from national representative surveys administered by Vitosha Research in the period 2000-2002. The data collection method is face-to-face interview. All of the surveys are based on a random two-stage cluster sample representative of the Bulgarian adult population (18+).
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The main objective of the IT monitoring conducted by Vitosha Research is to observe periodically and in a systemic way the distribution and use of PCs and Internet by Bulgarians.
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Regardless of the course and progress of change, the political and social situation, there is no former socialist state that has not taken at least initial steps in the field of privatization. The most commonly used approaches to privatization can be summarized in two - free (coupon, voucher) privatization and capital privatization (privatization fee). The two methods are only conditionally distinguishable, since they are not applied anywhere in pure form. The application of the capital methods of privatization and the free ones everywhere are accompanied by difficulties.
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Bulgarian households pay the lowest price of electricity in Europe in absolute terms. Price increases are inevitable to cover costs of new investments in production and transmission. Bulgaria has signed binding agreements within the European Union to achieve 16% of final or energy consumption from renewable energy sources (RES) by 2020, which will bring further pressure on prices for final consumers. Are Bulgarian households ready to foot the bill of more expensive electricity? How much more are they willing to fork out of their budget for green energy? A mere 13% of Bulgarian households are willing to pay extra for clean energy. Of those 82.5% would only bear a modest increase in their electricity bills – with up to 10%. Willingness to pay a ‘green energy premium’ is directly linked to the level of income. Low income households support cheaper although ‘dirtier’ energy. 63% of the population has used wood for heating, which remains the cheapest energy source. This shows that sustainable development through RES is not readily supported by Bulgarian consumers and there is a need of economic stimuli and campaigns to activate people and businesses in that direction. The Bulgarian government needs to balance carefully between new investments and the effects of price increases on socially and energy vulnerable members of society.
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The growing consumer prices of electricity have remained at the center of public debates over the past months, especially following their increase last year by 13%. Even though the regulated market supresses their growth, prices have steadily increased since 2005, both in Bulgaria and in the EU. In Bulgaria, the liberalization will most likely cause an additional short-term increase in consumer prices, before open competition exerts enough pressure on the market to perform better and eventually bring prices down. In the context of these developments, measures aimed at improving the energy efficiency of buildings are becoming increasingly popular.
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The so-called “green” premium - a market entry subsidy for renewable energy sources - was used as a convenient explanation for recent increases to the electricity bills in 2012. However, as time went by, consumers realized that a substantial part of their bills has been determined by another expense - the ”bad governance premium”, which, together with the forthcoming parliamentary elections and the increase of energy consumption during the winter, led to the ascent of social discontent and a search for new culprits for the surge in prices.
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Bulgaria’s energy sector suffers from deep governance and security challenges, which hold the first pages of the mainstream media in the past year with stories of fraud, nepotism and political corruption. The urge for action to transform the sector’s governance and open up markets for competition has been growing louder in the face of shrinking resources and increasing demands from different lobbies. The EU green policies and funding have been one of the precious few anchors, which the Bulgarian government should use to diversify its energy sources and liberalize its markets. Can the Bulgarian government really deliver for the benefit of its citizens?
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The decision to decrease by 5% the retail electricity prices as of 1 August 2013 is among the topics at the heart of political debates in Bulgaria this autumn. A similar move in 2010 clearly showed that such a politically mandated price decrease was not sustainable in the long run. It ended in the sharp increase (13% y-o-y) of electricity prices in 2012, and subsequent social unrest, which brought down the Bulgarian government in February 2013. The focus on the final consumer bill reduction in the public debate overshadows some of the other structural effects of the decision, which are worth mentioning.
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The prevailing financial or euro crisis is a reflection of inadequate fiscal policies in combination with a lack of competitiveness in several member countries of the eurozone. Whatever its causes, however, it has exposed fundamental weaknesses in the design of EMU as well as insufficient implementation of the rules governing the euro area. After all, EMU stands for Economic and Monetary Union. These deficiencies had been signalled earlier in the 1990s, but they have been ignored since then by many politicians and financial markets as well. At this moment, it is still unclear whether the euro-area members are able and willing to resolve this crisis by taking the necessary and far-reaching decisions towards a much higher degree of integration. Such moves would go beyond a ’fiscal union’ and would necessarily cover essential elements of macroeconomic policies as well.
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The euro crisis has inflicted severe financial, economic and political damage in all countries of the eurozone and beyond. Progress was made in 2012 to address these problems and to reduce the risk of repetition but they are by far not yet fully overcome. The good news is that this crisis has forced agreement on policy measures towards more centralised, European decision-making, which was unthinkable only a few years ago, and towards more European integration in those policy areas where this is needed. The recent positions taken by member countries in the European Council testify to the need as well as the difficulties of making real progress, requiring a combination of substantial solidarity and tough discipline on the part of all countries leading to further transfer of national sovereignty.
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It is my great pleasure to introduce myself as the new Chairman of CEPS. Let me start by thanking my predecessor, H. Onno Ruding, who assisted CEPS’ management in growing the organisation to the globally recognised institution that it is today, while preserving its integrity and reputation for insightful and constructive ideas. I intend to continue in that tradition, bringing my expertise to the work of CEPS on some of the core issues on the European agenda in 2014. In particular, the complex arrangements to establish a Single Resolution Mechanism will be of major importance. CEPS will follow the work of the intergovernmental conference that is fleshing out the agreement, providing input and acting as a sounding board for its proposals.
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At a time when nearly everyone has an opinion on the challenges facing Europe, CEPS is proudly continuing its 30-year mission of providing sound policy advice built on rigorous research. Our researchers help to shape policy by bringing academic discipline to the policy debate. We tackle the big, long-term questions and not just what’s fashionable at any given moment. At a time when many policy-makers are forced to focus on the immediate challenges, this is more important than ever. The European Union is in the midst of setting policy directions for years to come – on the future architecture of bank supervision, on eurozone governance, on migration. Our research is crucial in ensuring that policy builds on solid evidence.
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Turbulent times continue to provide plenty of food for thought. We are proud that CEPS has managed for several decades to provide expert analysis to an increasingly broad group of stakeholders on topical issues. For example, we have recently examined the migration crisis and the implications of a possible Grexit or Brexit for the EU. We have also addressed more long-standing policy problems such as Energy Union, innovation and deep and comprehensive agreements with important trading partners. With an eye to long-term global issues, CEPS was active in the negotiations for a new international climate change regime, providing a valuable and officially acknowledged contribution to the agreement reached at the COP21 in Paris. The last few months have also seen a worsening of the refugee crisis. Building on decades of research in the fields of migration and asylum, we have put forward concrete and evidencebased policy recommendations to decision-makers both in Brussels and in the national capitals.
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CEPS’ mission statement seems even more compelling today than it did when it was first adopted many years ago. Thinking ahead for Europe is imperative in light of the urgent challenges confronting the EU today, such as migration, Brexit and the rise of populism. This also applies to the many complex policy domains, such as energy union, capital markets union, economic governance, foreign policy and institutional reform, that require independent, authoritative and evidence-based analysis. Assessments by experts and carefully produced facts and figures tend to remain below the radar screen of current public discourse and they rarely make headlines. But these elements fully retain their value in today’s world in which policy-makers regularly face immensely difficult choices to address problems that are not susceptible to simple solutions or slogans. It is in this spirit that we pursue our work at CEPS.
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Populists usually don’t have much use for complexity. They prefer to build their proposals on the basis of simplistic ideas about the pluralism of our societies and the definition of their electoral platforms. Moreover, we are in the midst of a period when “fake news” competes with reality in an attempt to attract the support of citizens or to manipulate their understanding of what is actually going on. Nowadays, the role of think-tanks is more important than ever before in exposing and countering these trends and providing authoritative analysis to policy-makers and other stakeholders. Based on rigorous analysis of the relevant literature, facts and data, think tanks make an essential contribution to the decision-making process by increasing the awareness of the new challenges and providing educated insights. Their findings and recommendations are instrumental in the design of effective policies, capable of achieving viable outcomes.
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As part of the support team of the European Platform tackling undeclared work, CSD is developing a series of papers, analyses and toolkits, aimed at sharing good practices and experiences among the Member States. Since 2016, the European Platform tackling undeclared work provides an EU-level forum that allows different actors, including social partners and enforcement authorities, such as labour inspectorates, tax and social security authorities, to engage in closer cross-border cooperation and joint activities. The Platform’s 2-year work programme for 2019-2020 includes activities enabling Platform members to deal with undeclared work through a holistic approach. The new work programme is building on work to tackle bogus self-employment and fraudulent letterbox companies. Four sectors that are heavily affected by undeclared work have been identified for specific action: agriculture; aviation; tourism; and the hotel, restaurant and catering sector.
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As part of the support team of the European Platform tackling undeclared work, CSD is developing a series of papers, analyses and toolkits, aimed at sharing good practices and experiences among the Member States. Since 2016, the European Platform tackling undeclared work provides an EU-level forum that allows different actors, including social partners and enforcement authorities, such as labour inspectorates, tax and social security authorities, to engage in closer cross-border cooperation and joint activities. The Platform’s 2-year work programme for 2019-2020 includes activities enabling Platform members to deal with undeclared work through a holistic approach. The new work programme is building on work to tackle bogus self-employment and fraudulent letterbox companies. Four sectors that are heavily affected by undeclared work have been identified for specific action: agriculture; aviation; tourism; and the hotel, restaurant and catering sector.
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