ECONOMY
Bozhidar Lukarski
Minister of Economy for 2014-2017, during the second government of Boyko Borissov.
For the future term, the priorities of the ME should not differ much from the 2017-2021 term. They are, of course, related to the Covid-19 pandemic and the economic crisis resulting from this pandemic. The small and medium business is the most affected by the anti-pandemic measures locally in Bulgaria and globally, all across the world. Supporting SMEs is the Ministry's main priority. The Ministry of Economy has a strong hand with the Operational Program for Innovation and Competitiveness (OPIC). Over the past term, much of it has been redirected to the covid related measures that tackle its economic consequences. Many of the funds were given to finance entirely medical measures, others - to cover the damage to small and medium-sized businesses. The latter was neither timely nor sufficient. Accordingly, the main priority of the Ministry of Economy should be the active and efficient granting of OPIC funds. The EU institutions are now more experienced and much more prepared, so sufficient financial mechanisms have already been put in place at the European level to tackle the medical side of the pandemic. By the way, currently, the most important priority is related to the EU Recovery Plan, where the financial estimates must be submitted to Brussels by April 30th! Otherwise, Bulgaria will not receive any funding under the Plan within the year!
In other words, the "real" goal on the MI's and OPIC's agenda is to support small and medium-sized businesses in overcoming the covid related crisis. In addition to the post-effect - to cover the damage suffered by SMEs, a key role should be the direct financial support to promote business, which should develop itself to the extent that it can not only "equalize" the effects of the pandemic, but also to overcome them, to profit, have significant added value and, respectively - new jobs. OPIC, according to its original idea, was created for this sole purpose, and we should have this in mind.
The other important part of the priorities is also OPIC related - innovation. If nothing else, Covid-19 has shown that there may be facts, such as pandemics, natural disasters, major accidents, etc., that negatively affect the economy. Therefore, the emphasis should be on the prevention of such events. Innovation can play such a significant role in that. Therefore, the main criterion in the evaluation of an innovative project should be its preventive focus on creating a sustainable environment and conditions for the specific business in the presence of such adverse events.
Last but not least, I think it is important to carry out specific reorganizations, focusing on the priorities mentioned above, and not related to the economic consequences of Covid-19! And I immediately give a concrete example - the creation of a holding company uniting a chain of gas stations under the auspices of MI is completely unnecessary and would only spend funds which are imperative for everything we discussed above. I am sure that this is not the only example out there.
In conclusion, I should add that each priority depends largely on the specific personality of the future minister, to whom I wish success for Bulgaria's sake!
HEALTHCARE
Dr. Ilko Semerdzhiev
Minister of Health in the ODS government from 1999 to 2001 and Minister of Health in the caretaker government of Prof. Ognian Gerdjikov in 2017. Deputy Minister of Health in three governments (with the department of health policy and health care reforms). In 1999 he established the National Health Insurance Fund and was its first director. He managed medical institutions and health insurance companies.
Given the fact that the world, incl. Bulgaria amid the third wave of a pandemic caused by the SARS-COV-2 virus, the priority of the Ministry of Health and the new government should be focused on how to manage the health crisis and save the lives and health of Bulgarian citizens, which includes:
- Changing the management model for dealing with the epidemic;
- Establishment of a state anti-epidemic fund, through which to centrally take over the supplies of all necessary for anti-epidemic measures medicines, vaccines, consumables, protective equipment, etc.;
- Strengthening the structures, functions, and human capacity of RHIs to monitor epidemic chains and creating a strategy for intelligent quarantine of those affected, to avoid complete closure of the economy and people;
- Strengthening the treatment capacity in the health sector and more serious involvement of the outpatient sector in the process;
- Creating information capacity for monitoring and managing the epidemic process.
Rapid completion of the project for the construction of a National Health Information System - phases 1 and 2, as well as the ongoing work on phases 3 and 4, which have not yet started due to lack of funding.
Strengthening the capacity of the emergency medical care system, incl. building an adequate aero-medical base and competence.
Investing and reorganizing the inpatient psychiatric care system throughout the country.
Creating treatment and prevention capacity for the treatment of the elderly, high-risk and socially significant diseases, as well as vulnerable and priority groups of the population.
Normative adaptation of healthcare to the new realities created by the epidemic and the restrictions in the planned treatment of patients.
SOCIAL POLICY
Lydia Shuleva
Deputy Prime Minister in the Cabinet of Simeon Saxe-Coburg-Gotha (2001-2005) and Minister of Labor and Social Policy in 2001-2003, then Minister of Economy (2003-2005).
An effective social policy does not provide benefits, but a policy that manages to return people to the labor market. So far, the social policy has been inertial, related to spending and inefficient management, based on policies that are not sufficiently focused on risk groups and therefore do not achieve effect or results.
What is necessary?
Proactive social policy, which should be implemented as a horizontal policy and should be related to education, business, demographic policy, etc., with an emphasis on training that is more fitting to the labor market. A major reform of the qualification and retraining system is needed - training to a greater extent must be directly in the production process itself.
To define objective criteria for inclusion in the labor market and more efficient targeting of funds under the National Employment Plan.
Better management of support funds, based on precise targeting of risk groups, with a focus on those risk groups that cannot cope on their own - people with disabilities, elderly with low incomes, the long-term unemployed.
Overcoming the negative consequences of the demographic crisis;
Increasing incomes, pensions, and social payments, based on clear criteria.
The state must provide much more social services (instead of benefits) for people at risk, children and families.
FINANCE
Milen Velchev
Minister of Finance in the government of Simeon Saxe-Coburg-Gotha, from 2001 to 2005
The 45th National Assembly is embarking on an unprecedented set of challenges: an ongoing pandemic, a difficult and slow economic recovery, a compromised state budget - all in the face of unclear prospects for a functioning government in the foreseeable future. It's safe to assume that the new finance minister will have a lot of sleepless nights.
The failure of vaccination throughout the EU, but especially in our country, will put us at the end of the queue among the more developed countries in the process of overcoming the economic crisis. Many sectors, companies, and citizens are in dire need of government assistance to survive, and the funds are not fully provided for in Budget 2021. Social payments, for example, are budgeted until the end of March, which is already behind us.
The consolidated budget deficit is already in place by the end of March. By comparison, I find it difficult to recall a year in this century when the budget was not significantly surplus at the end of the first quarter. Rising costs are yet to come and I expect the deficit to increase, which will require a new budget update.
The lack of a stable majority, as well as the expectations for new elections, will have an easily predictable effect. Politicians will find it difficult to resist demands for spending. There is a danger that public finances will be permanently compromised. And the sooner the alarm goes off, the better.
There will be no temptation to "tie" the budget with new and higher taxes. Before we do that, we must remember that tax policy is one of the few areas in which Bulgaria has received praise many times. The flat tax brought much more revenue to the treasury than the previous tax system, and it also stimulated "quality" employment and the creation of high added value. VAT collection puts us among the leaders in the EU. I recommend following the rule "perfect is the enemy good".
However, we have to be optimistic. Thanks to good debt management and prudent budgets over the last quarter of a century, as well as an unprecedented surplus of money in international markets, public debt service costs are negligibly low. In addition, Bulgaria will continue to receive record-high financial injections from the EU. This will ensure faster economic recovery after the pandemic, as long as we manage European funds effectively.
ENVIRONMENT
Nona Karadzhova
Minister of Environment and Water in the first government of Boyko Borissov (2009-2013). She previously led the negotiations on the chapter "Environment" in the process of Bulgaria's accession to the EU.
The environment and climate are high-budget horizontal policies and should be a commitment, in addition to the MoEW, to the line ministries, which should accept these policies as a priority with huge added value. Given the competencies of the MoEW, the following national priorities, directly affecting human health and quality of life, the economy, and biodiversity, are key and require swift action:
- Achieving air quality standards. The focus is replacing domestic heating of wood and coal with ecological alternatives. The launched pilot projects with European funding are successful, there is accumulated experience and immediately after the approval of the Program "Environment" 2021-2027, the MoEW invites municipalities to present their projects. It is imperative to launch a national program in the same area, as the resource of EU funds is extremely insufficient. To achieve a synergistic effect, the MoEW needs to quickly implement the energy aid reform for socially disadvantaged households.
- To prevent water supply crises for the population, the economy, and ecosystems, the MoEW (together with ministries responsible for water infrastructure) should propose reform in the water sector. There are several solutions: the state to assume specific single-entity responsibility for the supply of water to all distribution networks (similarly, for example, to the strategic infrastructure for the supply of gas to the networks); obligation and schedule for backup water supply with priority critical areas; uniform price of the water supplied to the distribution networks at least on a basin basis. MoEW has to introduce water social benefits urgently - water supply is a vitally essential service, the price of which will inevitably increase due to the huge investments that it requires and the protection that is necessary for vulnerable households.
- The MoEW should propose the National Priority Framework for Natura 2000 Action immediately after the consultations with the EC. The monitoring and reporting on the implementation of the measures should be assigned to the National Biodiversity Advisory Council and, if necessary, corrective measures should be proposed and taken.
- Completion of the reclamation of the old landfills and uncompromising application of the normatively established mechanisms for an increase of the recycled and utilized household waste.
EDUCATION
Sergey Ignatov
Minister of Education, Youth, and Science in the period 2009-2013, during the first government of Boyko Borissov. Former rector of the New Bulgarian University and currently rector of the European University for the Humanities in Vilnius.
The education policies in the coming years must be socially oriented! The health crisis has opened new gaps in student achievement and has deepened the existing ones. The Covid-19 crisis has increased social inequality, which will lead to more students dropping out of the education system, interrupting or postponing graduates.
This will increase the need for specialists in the field of social sciences, as the growing inequality will cause a new "pandemic" of mental suffering and depression among young people.
There will be a change in the test system. Severe exams with high requirements will be perceived as discriminatory. They will be replaced by the individual work with students, which makes the figure of the assistant teacher mandatory.
Social inequality will reduce the number of private schools and universities, which will burden the budget.
Digitalization will enter all spheres of educational and scientific life and increase globalization, which will exist in more fixed forms. As a result, "brain drain" will be reduced.
Abstract education will be replaced by specific education! The development of creative potential will become a core value!
