REGARDING THE DRAFT AMENDMENTS TO THE INVESTMENT PROMOTION ACT

Position of the Bulgarian Industrial Association (BIA) on the Draft Law for Amendment and Supplementation of the Investment Promotion Act. In view of the forthcoming discussions in the relevant parliamentary committees, the Bulgarian Industrial Association (BIA) presents the following position:

1. BIA expresses full support for the Draft Law, which introduces measures aimed at:

   1. Facilitating procedures for investor certification and support;
   2. Improving the efficiency of investment promotion mechanism 
2. Concern Regarding the Screening Mechanism

BIA highlights a critical concern related to recent amendments to the Investment Promotion Act introducing a national screening mechanism. Specifically, the current legal framework:

• Does not provide screening rules for EFTA-EEA countries and the Swiss Confederation;
• The absence of a decision by the National Assembly under Article 27, paragraph 8 of the Investment Promotion Act (IPA) to determine a list of low-risk non-EU countries;
• Conflicts with Bulgaria’s international obligations under the EEA Agreement and with bilateral agreements signed between the EU and Switzerland.

3. Legal and Economic Implications

BIA highlights a critical concern related to recent amendments to the Investment 

BIA emphasizes that:

• The application of a screening mechanism to these countries would result in discrimination and administrative burden;
• Swiss and other investors from EFTA-EEA already have an established presence in Bulgaria and contribute to economic growth;
• The lack of clarity regarding the applicable rules sends a negative signal to foreign investors.
• Proposal for Legislative Amendment

To address these issues and ensure legal certainty, BIA proposes the following addition to Article 27(9) of the Act:

"Art. 27(9): For countries listed under paragraph 8, as well as the United States of America, the United Kingdom, Canada, Australia, New Zealand, Japan, the Republic of Korea, the United Arab Emirates, the Kingdom of Saudi Arabia, the Swiss Confederation, and EFTA member states that are parties to the EEA Agreement, the screening rules applicable to EU Member States shall apply."

- In conclusion BIA calls on Members of Parliament to support this proposal in order to:

• Align Bulgarian legislation with international commitments;
• Prevent unnecessary administrative burdens on established investors;
• Send a clear and positive signal to reliable foreign investment partners;
• Preserve and enhance Bulgaria’s competitiveness and investment climate